An external view of an Ulta beauty store at the Monroe Marketplace shopping center.
Paul Weaver | Sopa images | Lightrocket | Getty images
Even the beauty industry expects a weak 2025.
Ulta Beauty Thursday, gave less good advice on profits and revenues of the year in full year than Wall Street, after reporting the results of the holiday quarter that beat analyst forecasts.
The retailer, who appointed Kecia Steelman as a new CEO in January, said he expected comparable sales are stable or increased by 1% in 2025, while analysts had planned to increase 1.2%, according to Streetaccount.
It expects the annual profits to be between $ 22.50 and $ 22.90, lower than $ 23.47 expectations, according to LSEG.
Ulta is the last company to plan a Rocky 2025, but it contrasts with other retailers because beauty has been a source of strength in industry even if other discretionary categories have slowed down.
However, shares increased by 6% in prolonged exchanges.
Here is how the beauty retailer did in his fourth fiscal quarter compared to what Wall Street provided, based on a survey of LSEG analysts:
- Profit by action: $ 8.46 against $ 7.12 expected
- Income: $ 3.49 billion against $ 3.46 billion expected
The company’s declared net profit for the three -month period which ended on February 1 was $ 393 million, or $ 8.46 per share, compared to $ 394 million, or $ 8.08 per share, a year earlier.
Sales dropped $ 3.49 billion, down around $ 3.55 billion a year earlier. Like other retailers, Ulta benefited from an additional week of sales during the previous period, which negatively biased the results.
In January, Ulta announced that its longtime CEO, Dave Kimbell, would be replaced by his chief of the farm then Steelman, who has been with the retailer for more than a decade. She has only played the role for about two months, and even if she declared in a statement that she was proud of the company’s performance so far, said more work was to be done.
“Exercise 2025 will be a pivotal year because we make determined investments to feed our future growth and evolve quickly to optimize our business,” said Steelman. “Although it takes time to see the impact of these efforts, we are convinced that these investments will help rekindle our momentum and unlock sustained growth and long -term value for our shareholders.”
She did not share any comments on the trends of an up -to -date quarter or what the company has taken into account her advice.
During the ulta vacation quarter, comparable sales increased by 1.5%, beating expectations of 0.8% growth, according to Streetaccount. Customers spent more during the quarter, which resulted in a 3% increase in the average ticket, but fewer buyers came to Ulta stores to buy beauty products. Transactions during the quarter decreased by 1.4%.
This is probably due to the fact that Ulta faces more competition than ever. Not only does he compete with rival sephora, but also mass retailers like Macy,, Walmart And Amazon Make beauty a cornerstone of their strategies and have all widened their selections of make -up and care products.
Last year, Ulta warned against a refreshing beauty market, but companies like Elf beauty And Singularity I have not seen similar dynamics, and beauty sales remained strong in retailers like Macy’s and Target.
In the meantime, Ulta focused on strengthening profitability. He managed to increase benefits during the quarter, even with one week of sales less.
