Quick Overview
- The beauty specialist delivered first-quarter adjusted earnings of $7.74 per share, crushing the $6.89 consensus—marking a 15.5% increase versus last year.
- Revenue climbed 11.1% year-over-year to reach $3.16 billion, surpassing Street expectations of $3.12 billion.
- Same-store sales increased 5.3%, outperforming the projected 4.7% gain, fueled by higher transaction counts and increased spending per customer.
- Shares of ULTA surged up to 7.5% during after-hours trading on Tuesday, briefly touching $532 before moderating.
- Management elevated the bottom end of annual EPS projections to a range of $28.36–$28.80, improving from the previous $28.05–$28.55 forecast.
Ulta Beauty (ULTA) shares rallied up to 7.5% in extended-hours trading Tuesday following the release of first-quarter earnings that exceeded analyst projections across both top and bottom lines, prompting the company to upgrade its full-year financial outlook.
For the fiscal quarter that concluded on May 2, the beauty retailer announced adjusted earnings reaching $7.74 per share alongside revenue totaling $3.16 billion. Wall Street analysts had anticipated earnings of $6.89 per share with sales around $3.12 billion, according to data compiled by FactSet and LSEG. By Wednesday’s premarket session, shares had climbed approximately 1%, recovering from Tuesday’s regular session decline of 1.2% that closed at $494.87.
Despite the positive quarterly report, the stock remains down 18.2% since the beginning of the year through Tuesday’s close, though it has managed to post a 4.6% gain when viewed across the trailing 12-month period.
Comparable store sales growth registered at 5.3%, comfortably ahead of the Street’s 4.7% projection. Customer transactions grew by 1.6% while the average purchase value increased 3.7%—both metrics indicating stronger traffic and higher per-visit spending patterns.
Gross profit surged 13.8% to reach $1.3 billion. The company’s gross margin expanded to 40.1% from 39.1% in the prior-year period, benefiting from reduced shrinkage losses and improved product margins, according to CFO Chris DelOrefice.
Chief Executive Kecia Steelman highlighted “broad-based growth across all channels and major categories” and emphasized that the company’s strategic initiatives were proving resilient amid what she characterized as an unpredictable economic environment.
Key Performance Catalysts
Fragrances emerged as the top-performing segment, expanding their revenue contribution from 11% to 12% of overall sales. Cosmetics remained the dominant category at 40% of total purchases, with skincare and wellness products representing 24%, haircare capturing 18%, and fragrances completing the mix at 12%.
Ulta debuted on TikTok Shop during the three-month period and executed its inaugural shoppable livestream event, which generated over 5 million impressions. The retailer also expanded its product portfolio by introducing more than 20 fresh brands, including Rare Beauty by Selena Gomez.
The company’s rewards program membership expanded 4% to approach 47 million active members—a critical asset for driving recurring purchases and sustaining customer loyalty over time.
Updated Financial Outlook
Management increased the floor of its full-year earnings forecast. The revised annual EPS target now stands at $28.36 to $28.80, representing an upward adjustment from the earlier $28.05 to $28.55 range. The company maintained its existing full-year revenue growth projection of 6% to 7%, while comparable sales growth expectations remained unchanged at 2.5% to 3.5%.
Planned capital investments for the fiscal year stayed consistent at $400 million to $450 million.
The retailer currently operates 1,521 locations across the United States plus 87 international storefronts, including a flagship at Dubai Mall. During the quarter, the company added a net 16 new locations to its footprint.
On May 27, the company unveiled an exclusive promotional tie-in with the forthcoming Supergirl movie release, showcasing three curated beauty collections featuring merchandise from partners such as Sol de Janeiro and OPI. The theatrical release is scheduled for June 26.
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