Stock Dips
The company said it is making progress in the Ulta Beauty Unleashed turnaround strategy, but remains cautious about how consumer demand may evolve in the second half of the year. Going forward, a potential growth driver will be the recently acquired Space NK business, a UK-based specialty beauty retailer that enabled Ulta Beauty to enter the fast-growing UK market.
Key Metrics
Net sales increased to $2.79 billion in the second quarter from $2.55 billion in the same period of fiscal 2024. Comparable store sales rose by 6.7%. Second-quarter net income moved up to $260.9 million or $5.78 per share from $252.6 million or $5.30 per share in the corresponding quarter a year earlier. Both earnings and the top-line exceeded Wall Street’s expectations, marking their seventh beat in a row.
Commenting on the results, Ulta Beauty’s CEO Kecia Steelman said, “Performance in the second quarter was fueled by the strength of our core business, reflecting our commitment to getting back to the basics, improved in-store execution, and elevating our go-to-market approach through operational excellence, marketing leadership, and compelling merchandising and innovation. Tighter collaboration and planful coordination across our field, marketing, and merchandising teams is having a tangible impact. We continue to make progress in advancing our brand building and digital, and personalization efforts.
Guidance
The Ulta Beauty leadership raised its full-year 2025 sales guidance to the range of $12.0 billion to $12.1 billion from the previous forecast of $11.5-11.7 billion. It expects FY25 comparable store sales to grow in the 2.5-3.5% range, vs. the earlier growth projection of 0-1.5%. Full-year earnings per share guidance has been raised to the range of $23.85 to $24.30 from $22.65-23.20.
On Friday, Ulta Beauty’s shares traded lower throughout the session, extending the post-earnings downturn. The average stock price for the last 52 weeks is $412.18.