Key Takeaways
- The beauty giant delivered first-quarter adjusted earnings per share of $7.74, significantly exceeding analyst projections of $6.89 and marking a 15.5% increase year-over-year.
- Revenue climbed 11.1% to reach $3.16 billion, surpassing consensus expectations of $3.12 billion.
- Same-store sales advanced 5.3%, outperforming the anticipated 4.7% gain, fueled by increased customer visits and higher average purchase amounts.
- Shares of ULTA surged as much as 7.5% during after-hours trading Tuesday, briefly touching levels above $532 before moderating.
- The company elevated the bottom of its annual EPS forecast range to $28.36–$28.80, revised upward from the previous $28.05–$28.55.
Ulta Beauty (ULTA) shares soared up to 7.5% in after-hours trading Tuesday following the cosmetics retailer’s announcement of first-quarter performance that exceeded analyst projections across key metrics, alongside an improved annual forecast.
For the fiscal quarter that concluded on May 2, the company recorded adjusted earnings of $7.74 per share with total revenue reaching $3.16 billion. Market analysts had projected earnings of $6.89 per share and sales of approximately $3.12 billion, according to data compiled by FactSet and LSEG. By Wednesday’s premarket session, shares had settled to roughly 1% gains, following Tuesday’s regular trading session where the stock declined 1.2% to close at $494.87.
Through Tuesday’s close, the stock has declined 18.2% since the start of the year, although it shows a 4.6% gain when measured over the trailing 12-month period.
Comparable sales at existing locations increased 5.3%, surpassing the 4.7% consensus forecast. Customer transaction volume grew 1.6% while average purchase values climbed 3.7% — indicators that demonstrate both higher foot traffic and increased spending per shopping occasion.
Gross profit surged 13.8% to reach $1.3 billion. The company’s gross margin expanded to 40.1% from 39.1% in the comparable period last year, benefiting from reduced inventory loss and improved product profitability, according to CFO Chris DelOrefice.
Chief Executive Kecia Steelman attributed the results to “broad-based growth across all channels and major categories” and noted the company’s strategic initiatives continue to perform well despite ongoing macroeconomic uncertainty.
Key Performance Categories
The fragrance segment emerged as a particularly strong performer, expanding its share of total revenue from 11% to 12%. Cosmetics represented the largest category at 40% of total purchases, while skincare and wellness captured 24%, haircare accounted for 18%, and fragrances rounded out the mix at 12%.
Ulta introduced its TikTok Shop presence during the period and executed its inaugural shoppable livestream event, which generated over 5 million impressions. The retailer also expanded its product portfolio by adding more than 20 fresh brands to its lineup, including Rare Beauty from celebrity entrepreneur Selena Gomez.
The company’s loyalty program membership expanded 4% to approach 47 million active members — a crucial foundation for driving repeat business and cultivating customer lifetime value.
Revised Financial Outlook
Management raised the floor of its full-year earnings projection. The updated guidance now calls for EPS between $28.36 and $28.80, representing an increase from the prior range of $28.05 to $28.55. The company maintained its full-year revenue growth forecast of 6% to 7% and kept comparable sales growth expectations at 2.5% to 3.5%.
Planned capital investments for the year remained unchanged at $400 million to $450 million.
The retailer currently operates 1,521 locations throughout the United States and 87 stores in international markets, including a flagship presence at Dubai Mall. During the quarter, the company achieved a net addition of 16 new stores to its footprint.
On May 27, the beauty giant unveiled an exclusive promotional partnership tied to the forthcoming Supergirl motion picture, featuring three specially curated beauty collections incorporating products from popular brands such as Sol de Janeiro and OPI. The film is scheduled to premiere on June 26.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
