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Ulta Beauty's stock rises despite the firm experiencing ‘headwinds’ in the beauty market


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Ulta Beauty

Even though Ulta Beauty claims to be facing "headwinds" and more competitive pricing in the beauty business, the company's shares saw a modest increase on Wednesday.

The specialty retailer maintained to its fiscal year prediction on Wednesday while hosting its investor day close to its Chicago headquarters. According to Ulta, comparable sales would either shrink by 2% or remain approximately level, while net sales are expected to fall between $11 billion and $11.2 billion. The profits per share are expected to fall between $22.60 and $23.50.

Ulta said that its financial goals for 2026 and beyond would be low double-digit increase in diluted profits per share and 4% to 6% growth in net sales. It stated that it anticipates operating profit growth in the mid-single digits and operating margins of about 12% of net sales.

However, it did not offer a detailed forecast for the fiscal year 2025. The business reduced its full-year 2024 prediction in August and failed Wall Street's profits forecasts, which prompted the adjustments.

With a 1% gain, Ulta Beauty shares ended the day at $373.21. At the closing on Wednesday, Ulta stock price had dropped almost 24% so far this year. Early in the day, the company's shares fell before rising.

CEO Dave Kimbell stated in his keynote address at the investor conference on Wednesday morning that the year has been harder than anticipated. According to Kimbell, the cosmetics category has stabilized at more moderate historical growth rates, the consumer environment is more unstable, and competition has increased, particularly in the prestige sector.

He noted that in order to increase sales, the firm is forming alliances with new companies, growing its loyalty program, and customizing campaigns to appeal to certain target audiences.


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