Ulta has now shifted to a more modest outlook for the second time this year. For the second straight quarter, Ulta Beauty (ULTA 0.34%) lowered its full-year guidance. While its share price fell on the news, the stock held up pretty well given the pressures the beauty products retailer has been seeing, likely helped by a recent investment from famed investor Warren Buffett. With the stock down more than 25% on the year, let's take a closer look at its most recent earnings report and guidance and see if inves ...

Ulta Beauty Today | --- | --- | --- | |---------------------------------|-------|-------| | | | | | | | | | | | | | ULTA | | | | Ulta Beauty | | | | $352.84 | | | | -14.74 (-4.01%) 52-Week Range | | | | $318.17 | | | | ▼ | | | | $574.76 | | | | P/E Ratio | | | | 13.76 | | | | Price Target $434.65 | | | | | | | Add to Watchlist Technically speaking, a bottom in stock prices isn't a bottom until it's been confirmed by a second bounce, and Ulta NASDAQ: ULTA is a prime example. The first entry signal is typical ...

JHVEPhoto August 30th was not a particularly pleasant day for shareholders of Ulta Beauty, Inc. (NASDAQ:ULTA), a company that operates as the largest beauty retailer in the US. Through its stores, it sells cosmetics, fragrances, skincare products, and hair care products, and even provides salon services. This is a space that, in prior years, had been quite attractive. Management has achieved robust growth and has not been shy to allocate excess capital toward things like share buybacks. Unfortunately, thoug ...

Ulta Beauty, Inc. (ULTA) posted drab second-quarter fiscal 2024 results, with the top and the bottom line missing the Zacks Consensus Estimate and earnings declining year over year. ULTA registered lower comparable sales in the quarter due to a shift in consumer behavior toward value and cautious spending, high competition with numerous new beauty distribution points affecting market share, operational disruptions from the ERP system transition and ineffective incremental promotions that did not boost in-st ...

Amid escalating competitive pressures, Ulta Beauty is facing a challenging retail environment that impacted its store performance in the second quarter, according to earnings results. Although the beauty sector remains strong, the rapid influx of new competitors has challenged Ulta's ability to sustain its market share, particularly in the prestige beauty category. During the company's second-quarter earnings call Thursday (Aug. 29), CEO Dave Kimbell discussed the situation after net sales increased by 0.9% ...

Key Takeaways Ulta Beauty posted weaker-than-anticipated results and reduced its guidance as consumers limited their spending and competition increased. The company reported a surprise drop in comparable-store sales as transactions declined. CEO David Kimbell said Ulta Beauty's market share continues to be challenged. Shares of Ulta Beauty (ULTA) slumped after the seller of beauty products reported worse-than-expected results and cut its outlook on a surprise drop in comparable store sales. Consumers limite ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

U.S. stock futures were higher this morning, with the Nasdaq futures gaining around 100 points on Friday. Shares of Ulta Beauty, Inc. ULTA fell sharply in today's pre-market trading after the company reported weakerthan-expected results for its second quarter and cut its FY24 guidance. Ulta Beauty reported quarterly earnings of $5.30 per share, which missed the analyst consensus estimate of $5.55 by 4.5%. Quarterly sales came in at $2.552 billion, missing the consensus estimate by 2.52%. Ulta Beauty shares ...

Financial Data and Key Metrics Changes - Net sales increased by 0.9% to $2.6 billion, while comparable sales decreased by 1.2% [4][30] - Operating profit was 12.9% of sales, and diluted EPS was $5.30 per share, down from $6.02 last year [5][34] - Gross margin decreased by 100 basis points to 38.3% compared to 39.3% last year, primarily due to lower merchandise margin and deleverage of store fixed costs [32][34] - SG&A expenses increased by 7.3% to $645 million, with SG&A as a percentage of sales rising to 25.3% from 23.7% last year [34] Business Line Data and Key Metrics Changes - Fragrance category delivered double-digit growth, driven by strong guest engagement and new product launches [15] - Skin care category saw mid-single digit comp growth, particularly in Body Care, while prestige skincare faced pressures [16] - Makeup category experienced a mid-single digit decline in comp sales, with new brands performing well but existing brands underperforming [17] - Hair care category comp sales decreased in the high-single digit range due to planned promotional shifts [18] Market Data and Key Metrics Changes - U.S. beauty growth slowed to approximately 3% in the first half of 2024, with prestige beauty experiencing high-single digit growth and mass beauty maintaining low-single digit growth [6] - Market share in mass beauty was maintained, but share in prestige beauty was lost, particularly in makeup and hair categories [8] Company Strategy and Development Direction - The company is focusing on five key areas to reinforce its competitive position: strengthening assortment, expanding social relevance, enhancing digital experience, leveraging loyalty programs, and evolving promotional strategies [11][19] - New brand launches and exclusive partnerships are planned to drive growth, including the relaunch of the Ulta Beauty Collection [20][21] - The company aims to enhance brand awareness and engagement through influencer networks and social media initiatives [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged competitive intensity in the beauty category and the impact of new distribution points on existing stores [7][9] - The company is confident in its ability to navigate competitive pressures and is focused on improving performance in the second half of the year [29][39] - A cautious outlook for the year was provided, with net sales expected between $11 billion and $11.2 billion and comp sales projected to decline by 2% to flat [37][38] Other Important Information - The company completed its ERP transformation, which caused operational disruptions but is now expected to improve efficiency [12][69] - The loyalty program has grown to 43.9 million active members, reflecting a 5% increase year-over-year [10] Q&A Session Summary Question: Can you expand on the competitive pressures noted? - Management highlighted that 88% of stores have been impacted by competitive openings, with those facing multiple openings underperforming compared to those with limited impact [42][44] Question: What actions are being taken to limit SG&A deleverage? - Focused expense management has led to better-than-planned SG&A, with expectations for mid-single digit growth in the second half [46][47] Question: How long to restore positive comps given competitive overlap? - Management remains confident in long-term recovery, citing positive signals in guest engagement and new product introductions [50][55] Question: How is the salon unit growth and Target rollout performing? - New store openings are performing well, and the partnership with Target is seen as a strategic asset for member engagement [58][59] Question: What gives confidence that promotional levels can sustain? - Management believes that while promotional activity has increased, it will remain rational and below pre-COVID levels due to smart execution and CRM capabilities [61][62] Question: How is the operational disruption from the ERP transition being managed? - The challenging phase of the ERP rollout has been completed, and the focus is now on optimizing the system [68][69] Question: Any updates on long-term margin targets? - No updates were provided, but management plans to discuss long-term expectations at the upcoming Investor Day [72] Question: Are share losses in prestige getting worse? - Management indicated that while pressures remain, the situation has not worsened, and the dynamics are consistent with earlier trends [76] Question: Has the competitive environment changed the ability to get new brands? - Management stated that brand partners continue to view Ulta Beauty as a leading destination for expansion, maintaining strong relationships with existing and new brands [78][79]

For the quarter ended July 2024, Ulta Beauty (ULTA) reported revenue of $2.55 billion, up 0.9% over the same period last year. EPS came in at $5.30, compared to $6.02 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.61 billion, representing a surprise of -2.24%. The company delivered an EPS surprise of -2.75%, with the consensus EPS estimate being $5.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...