Ulta Magnificence retailer in New York, USA on Monday, August 19, 2024.
Yuki Iwamura | Bloomberg | Getty Photographs
Ultra beauty shares tumbled Wednesday morning as the corporate stated it sees “headwinds” and stronger competitors within the magnificence trade.
Whereas internet hosting its investor day close to its Chicago headquarters on Wednesday, the specialty retailer caught to its forecast for this fiscal yr. Ulta stated it expects internet gross sales to vary from $11 billion to $11.2 billion, and comparable gross sales to vary from a 2% decline to roughly flat. Earnings per share will vary from $22.60 to $23.50.
For 2026 and past, Ulta stated its monetary targets will probably be 4% to six% internet gross sales progress and low double-digit earnings per share progress. The corporate stated it expects mid-single-digit progress in working revenue and working margins round 12% of internet gross sales.
But it doesn’t present a concrete outlook for fiscal 2025. The updates come after the corporate missed Wall Avenue’s revenue expectations and cut its full-year 2024 forecast in August.
In his opening remarks on the investor day, CEO Dave Kimball stated this yr “has been tougher than deliberate.” Kimball stated the sweetness class has normalized to extra modest historic progress charges, the buyer panorama is extra risky and extra competitors has emerged, significantly within the status class.
He stated the corporate is taking motion to extend gross sales by establishing partnerships with new manufacturers, increasing its loyalty program and customizing promotions to interact prospects.
“Whereas we count on a few of these headwinds to proceed within the close to time period, we’re assured in our potential to execute on our plans and put together for long-term progress,” he stated.
The investor day will embrace displays on Ulta’s technique and a question-and-answer session with buyers.
This story is evolving. Please verify again for updates.
