Ulta Beauty Stock Climbs After Better-Than-Expected Q1 Report, Raised Fiscal 2025 Outlook

Ulta Beauty, Inc. (NASDAQ:ULTA) released its first-quarter results after Thursday's closing bell. Here's a look at the details in the report. 

The Details: Ulta Beauty reported quarterly earnings of $6.70 per share, which beat the consensus estimate of $5.77 by 16.12%. Quarterly revenue of $2.85 billion beat the Street estimate of $2.79 billion.

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For the first quarter, Ulta reported:

• Net sales increased 4.5% to $2.8 billion compared to $2.7 billion, primarily due to increased comparable sales and new store contribution, partially offset by a decrease in other revenue.
• Comparable sales increased 2.9% compared to the first quarter of fiscal 2024, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions.
• Merchandise inventories, net at the end of first quarter of fiscal 2025 increased 11.3% to $2.1 billion compared to $1.9 billion at the end of the first quarter of fiscal 2024. Ulta said the increase was primarily due to inventory to support new brand launches, strategic investments in key categories and 56 net new stores.
• Gross profit increased 4.2% to $1.11 billion compared to $1.07 billion. As a percentage of net sales, gross profit decreased to 39.1% compared to 39.2%, primarily due to the deleverage of store and supply chain fixed costs and lower other revenue, partially offset by lower inventory shrink.

“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth,” said Kecia Steelman, Ulta Beauty’s CEO. 

Outlook: Ulta raised its fiscal 2025 GAAP EPS guidance from a range of $22.50 to $22.90 to a new range of $22.65 to $23.20, versus the $22.99 analyst estimate. Ulta raised its fiscal 2025 revenue outlook from a range of $11.5 billion to $11.6 billion to a new range of $11.5 billion to $11.7 billion, versus the $11.59 billion estimate.

ULTA Price Action: According to data from Benzinga Pro, Ulta Beauty stock was up 8.60% at $458.07 in Thursday's extended trading. 

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