Ulta Beauty (ULTA) Stock Surges on Strong Q1 Earnings Beat and Raised Guidance

Key Highlights

• The beauty retailer delivered Q1 adjusted earnings of $7.74 per share, significantly surpassing analyst projections of $6.89 — marking a 15.5% increase from the same period last year.
• Revenue climbed 11.1% year-over-year to $3.16 billion, exceeding Wall Street’s consensus forecast of $3.12 billion.
• Comp store sales advanced 5.3%, outperforming the projected 4.7%, fueled by higher transaction volumes and increased average purchase amounts.
• Shares of ULTA surged up to 7.5% during after-hours trading on Tuesday, briefly crossing the $532 mark before moderating.
• The company elevated the bottom of its full-year earnings outlook to $28.36–$28.80 from the previous range of $28.05–$28.55.

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Ulta Beauty (ULTA) shares experienced a sharp rally of up to 7.5% in after-hours trading on Tuesday following the company’s release of first-quarter financial results that exceeded analyst expectations across key metrics, accompanied by an improved annual forecast.

Ulta Beauty, Inc., ULTA

For the fiscal quarter that concluded on May 2, the retailer announced adjusted earnings per share of $7.74 alongside total revenue of $3.16 billion. Wall Street analysts had anticipated earnings of $6.89 per share and sales of approximately $3.12 billion, according to data from FactSet and LSEG. By Wednesday’s premarket session, the stock had gained roughly 1%, after finishing regular Tuesday trading down 1.2% at $494.87.

Year-to-date through Tuesday’s close, shares have declined 18.2%, though they’ve posted a 4.6% gain over the trailing twelve months.

Comparable store sales performance came in at 5.3%, surpassing the consensus estimate of 4.7%. Customer transaction counts increased 1.6% while average basket values climbed 3.7% — both metrics indicating stronger customer engagement and spending patterns.

Gross profit surged 13.8% to reach $1.3 billion. The company’s gross margin expanded to 40.1% compared to 39.1% in the year-ago period, benefiting from reduced inventory shrinkage and improved product margins, according to CFO Chris DelOrefice.

Performance by Category

The fragrance segment emerged as a star performer, expanding its share of total sales from 11% to 12%. Cosmetics maintained its position as the largest category at 40% of purchases, with skincare and wellness representing 24%, haircare contributing 18%, and fragrances accounting for 12%.

Ulta debuted its presence on TikTok Shop throughout the quarter and executed its inaugural shoppable livestream event, which generated over 5 million impressions. The retailer also expanded its brand portfolio by more than 20 names, including the addition of Rare Beauty by Selena Gomez.

The company’s loyalty rewards program membership expanded 4% to approach 47 million active members — a critical asset for driving repeat business and sustaining customer lifetime value.

Updated Annual Outlook

Management increased the lower boundary of its full-year profit forecast. The updated earnings per share guidance now stands at $28.36 to $28.80, revised upward from the earlier projection of $28.05 to $28.55. The company maintained its existing full-year revenue growth target of 6% to 7% and its comparable sales growth expectation of 2.5% to 3.5%.

Planned capital investments for the year remain unchanged at $400 million to $450 million.

The retailer currently operates a network of 1,521 domestic stores and 87 international locations, which includes a flagship store at Dubai Mall. During the first quarter, the company expanded its footprint by 16 net new locations.

On May 27, the beauty retailer unveiled an exclusive marketing partnership tied to the forthcoming Supergirl motion picture, showcasing three character-inspired beauty collections featuring products from partners including Sol de Janeiro and OPI. The film is scheduled for theatrical release on June 26.

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