Key Takeaways
- The beauty retailer delivered first-quarter adjusted earnings per share of $7.74, significantly surpassing analyst projections of $6.89 — marking a 15.5% increase from the same period last year.
- Revenue climbed 11.1% to reach $3.16 billion, exceeding Wall Street’s forecast of $3.12 billion.
- Same-store sales increased 5.3%, outperforming expectations of 4.7%, fueled by higher transaction counts and increased average purchase amounts.
- Shares of ULTA surged up to 7.5% during Tuesday’s after-hours session, briefly trading above $532 before moderating.
- The company lifted the bottom end of its annual EPS forecast to a range of $28.36–$28.80, compared to the previous $28.05–$28.55 range.
Shares of Ulta Beauty (ULTA) stock rallied by as much as 7.5% during after-hours trading on Tuesday following the cosmetics giant’s announcement of first-quarter financial results that exceeded analyst expectations across key metrics, while simultaneously raising its annual earnings outlook.
In the three-month period that concluded on May 2, the retailer posted adjusted earnings of $7.74 per share alongside revenue totaling $3.16 billion. Wall Street consensus had anticipated 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 advanced roughly 1%, after ending regular trading Tuesday with a 1.2% decline at $494.87.
Year-to-date through Tuesday’s close, the stock has declined 18.2%, though it remains up 4.6% over the trailing twelve-month period.
Comparable-store sales growth came in at 5.3%, beating the consensus estimate of 4.7%. Customer transactions rose 1.6% while average ticket values increased 3.7% — indicators that more shoppers are visiting stores and spending more when they do.
Gross profit surged 13.8% to $1.3 billion. The company’s gross margin widened to 40.1% from 39.1% in the prior-year quarter, benefiting from reduced inventory shrinkage and improved merchandise 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 that the company’s strategic initiatives continue to perform well despite what she characterized as an unpredictable macroeconomic environment.
What’s Fueling the Expansion
Fragrance products emerged as the top-performing segment, expanding from 11% to 12% of overall revenue. Cosmetics remained the largest category at 40% of total sales, with skincare and wellness representing 24%, haircare at 18%, and fragrances at 12%.
Ulta debuted its TikTok Shop presence during the quarter and executed its inaugural shoppable livestream event, which generated over 5 million impressions. The retailer also brought in more than 20 additional brands to its assortment, including Rare Beauty by Selena Gomez.
The company’s rewards program membership expanded 4% to approach 47 million active members — a base the retailer depends on for driving repeat business and customer retention.
Updated Annual Outlook
Ulta elevated the low end of its full-year profit forecast. The company now projects earnings per share between $28.36 and $28.80, up from its earlier guidance of $28.05 to $28.55. Projections for full-year revenue growth of 6% to 7% and comparable sales expansion of 2.5% to 3.5% remained unaltered.
The company also maintained its capital spending guidance at $400 million to $450 million for fiscal 2025.
Ulta currently operates a footprint of 1,521 stores across the United States plus 87 international locations, including a flagship at Dubai Mall. During the first quarter, the company added a net 16 new stores.
On May 27, Ulta revealed an exclusive collaboration with the forthcoming Supergirl motion picture, featuring three themed cosmetic collections with products from brands such as Sol de Janeiro and OPI. The film is scheduled for theatrical release on June 26.
