Latest news with #Ulta
Miami Herald
2 days ago
- Business
- Miami Herald
Ulta Beauty issues stern warning as consumers switch gears
Like many retailers across the country, Ulta Beauty (ULTA) is navigating a tough economic environment amid inflation and the looming threat of tariffs. Despite recently seeing a small boost in sales during the first few months of this year, the beauty retailer has made a bold move, signaling that it is cautious about future customer behavior. Don't miss the move: Subscribe to TheStreet's free daily newsletter In Ulta's first-quarter earnings report for 2025, it revealed that its comparable sales increased by 2.9% year-over-year. Specifically, the number of transactions in its stores increased by 0.6%, while the average amount of money customers spent per transaction spiked by 2.3%, which was primarily driven by higher prices. Related: Ulta Beauty makes drastic decision on Target partnership Despite the boost in sales, the foot traffic in Ulta's stores declined during the quarter, according to recent data from The average number of visits customers made to each of its locations dipped by roughly 7%. Image source: Jones/Bloomberg via Getty Images During an earnings call on May 30, Ulta Beauty CEO Kecia Steelman said that fragrance sales performed the strongest during the quarter, with brands such as XO Khloé by Khloé Kardashian and Noyz performing well. Skincare and wellness sales also increased; however, hair care sales remained flat, while makeup sales "decreased slightly." "Consumer engagement with beauty remains healthy, and our insights indicate beauty and wellness remain a top priority for beauty enthusiasts who tell us that they're more willing to make tradeoffs in other discretionary areas to maintain their beauty regimens," said Steelman during the call. "At the same time, they are cautious, and value is an increasingly important priority as they navigate ongoing wallet pressures." Related: Ross Stores makes drastic decision customers will see in stores She also said many consumers are "leaning into beauty as a comfort and escape from the stress of macro uncertainty," and the company expects that this emotional connection will support the company's sales going forward. However, despite this pattern of customer behavior, she warned that customers could quickly change their tune as they navigate a tough economic environment. "While they tell us that they intend to prioritize beauty and wellness, that's what they say, but they could also do something very different depending on the environment," said Steelman. In response to this risk, Ulta has updated its sales expectations for the rest of the year. It expects its comparable sales for the year to either remain flat or increase by 1.5%. Previously, it expected its sales to increase by no more than 1%. Ulta said the updated outlook reflects expectations that its comparable store sales will either decrease by low single digits or modestly increase during the second half of the year. More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior "While the beauty category has historically been resilient through economic downturns, it has not been immune to consumer pressure," said Ulta Beauty Chief Financial Officer Paula Oyibo during the call. "The operating environment continues to be very dynamic, and the evolving global trade landscape has created more uncertainty related to consumer wallet pressures, especially for the second half of the year." The move from Ulta comes during a time when many consumers are worried about the impact President Donald Trump's tariffs (taxes companies pay to import goods from overseas) will have on their finances. In April, Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs. The pause on reciprocal tariffs will end in July, and as a result, about 60 countries will see higher tariff rates. This will likely cause U.S. consumers to see inflated prices for everyday goods. Trump's tariff policy has led to uncertainty, especially since it has changed multiple times and was recently challenged in federal court. According to a recent survey from market research company Numerator, 72% of consumers are worried that tariffs will raise prices for everyday goods. Also, 85% are concerned that tariffs will impact their personal finances, while 83% will adjust their shopping behaviors to prepare for tariffs. Related: Home Depot struggles to reverse concerning customer behavior The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
Ulta Beauty Shares Soar on Q1 Beat, Raised Guide
Ulta Beauty (NASDAQ:ULTA) jumps 11.2% as its Unleashed turnaround delivers better-than-expected Q1 comp sales and a lifted outlook. In Q1, ULTA posted adjusted EPS of $6.70, handily topping forecasts, on a 4.4% sales rise that outpaced both Sephora and Amazon-driven market share gains. Management raised full-year guidance for revenue, EPS and comps, citing slowing share losses to prestige rivals and stronger teen and value-driven customer cohorts. Evercore's Michael Binetti points to Ulta's early momentum among teens and its blend of innovation-with-value as a competitive edge, while Morgan Stanley's Simeon Gutman sees comps potentially hitting 2.5% in 2025 and 4.5% in 2026driving operating leverage and healthier margins. Digital growth also impressed: Ulta's online revenue climbed 10% despite Amazon's beauty push, aided by features like Split Cart and Shop My Store that boost engagement and defend digital share. CEO Kecia Steelman says these efforts are translating into stronger engagement, increased relevance and measurable business impact. UBS's Michael Lasser adds that rising Net Promoter Scores across stores and e-commerce demonstrate crisper execution. Investors should care because Ulta's dual-track recoveryrevived in-store comps plus robust digital gainssignals that its Unleashed initiative can sustain share gains and margin expansion, offsetting the headwinds that stalled growth last year. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Ulta Beauty Soars 11.2% on Earnings Beat and Upgraded Outlook
Ulta Beauty (NASDAQ:ULTA) just wrapped its first quarter with a better-than-expected finish, pushing past Wall Street's forecasts with $2.85 billion in revenue and earnings of $6.70 per share. The earning results drove the share price up 11.2% at 12.35pm today. The beauty retailer saw modest gains in foot traffic and average ticket size, but what really stood out was management's tonemeasured optimism, with a side of realism. CEO Kecia Steelman said their new "Ulta Beauty Unleashed" strategy is gaining traction, but also flagged a fluid environment that could reshape consumer demand as the year plays out. The company dialed up its full-year guidance slightly, now projecting up to 1.5% comp sales growth (up from 1%) and bumping its EPS range to $22.65$23.20. Still, some signals warrant a second look: gross margin dipped slightly to 39.1%, SG&A climbed to nearly 25% of sales, and inventories jumped 11%likely tied to new brand launches and store expansion. Ulta also maintained its full-year operating margin forecast at 11.7%11.8%, suggesting no major shifts in underlying cost dynamics. One thing that hasn't slowed down? Buybacks. Ulta scooped up nearly $359 million of its own shares this quarter, with another $2.3 billion left to deploy. The store count rose to 1,451 locations, and plans for 60 net new stores are holding steady. For now, the business looks steadybut how consumer spending evolves heading into the second half could be what defines the stock's next move. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Top Stocks Gain Strength As Retailers Diverge; This Stock Plunges 18%
Ulta Beauty surged to a 13-month high Friday after a bullish quarterly report, and retail stocks capped a week of sharp divergences. Both numbers beat analysts' estimates, according to FactSet. Ulta raised its profit forecast for the current fiscal year to $22.65-$23.20 per share, from an earlier estimate of $22.50-$22.90.
Yahoo
3 days ago
- Business
- Yahoo
Why Ulta (ULTA) Stock Is Trading Up Today
Shares of beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA) jumped 11.8% in the morning session after the company reported an impressive "beat and raise" quarter. Ulta blew past analysts' sales, EPS and EBITDA expectations during the quarter (Q1 2025). Sales grew 4.5%, helped by stronger store traffic and rising average ticket size, with comparable sales climbing nearly 3 percent, twice the pace from the same period last year. Looking ahead, it lifted its full-year revenue guidance, which was impressive, especially given how many retailers are reducing guidance or withdrawing it altogether. Overall, we think this was a solid quarter with some key metrics above expectations. Is now the time to buy Ulta? Access our full analysis report here, it's free. Ulta's shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Ulta and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 10 months ago when the stock gained 15.1% on the news that Warren Buffett's Berkshire Hathaway revealed a stake of 690K shares of Ulta valued at ~$266 million in its Q2 2024 13-F filing. Given the legendary investor's reputation for identifying quality opportunities in the stock market, the market likely read the information positively for the company's near term prospects. The sentiment was also supported by Walmart's strong earnings outperformance and sales outlook for the rest of the year, which indicated a healthy spending pattern for the U.S. consumer. Ulta is up 9.1% since the beginning of the year, and at $468.28 per share, has set a new 52-week high. Investors who bought $1,000 worth of Ulta's shares 5 years ago would now be looking at an investment worth $1,959. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
