Ulta Beauty Reports Strong Q4 Results but Lowers 2025 Outlook

The retailer's earnings exceeded expectations, but its guidance for 2025 signals challenges in a competitive beauty market.

Ulta Beauty's Q4 earnings per share reached $8.46, surpassing analysts' expectations of $7.13, with net sales of $3.49 billion also beating forecasts.
Comparable sales grew by 1.5% in the holiday quarter, exceeding the anticipated 0.8% growth, despite a 1.9% decline in overall net sales year-over-year due to an extra week in the prior fiscal year.
New CEO Kecia Steelman, addressing her first earnings call, outlined a strategic plan, 'Ulta Beauty Unleashed,' to optimize operations, expand digital capabilities, and focus on high-growth areas like wellness and international markets.
Ulta's 2025 guidance projects flat to 1% comparable sales growth and earnings per share between $22.50 and $22.90, falling short of Wall Street's expectations of $23.47.
Shares rose 7% in extended trading, reflecting investor optimism about Ulta's Q4 performance and Steelman's plans to address competitive pressures and operational challenges.