Core Viewpoint - Ulta Beauty Inc reported better-than-expected fourth-quarter FY24 earnings, although FY25 guidance was below consensus, indicating a transitional year with investments aimed at market share recovery and long-term growth [2][11][13]. Financial Performance - Ulta's fourth-quarter EBIT was $516 million, exceeding the consensus estimate of $441 million [3]. - The company achieved a 1.5% comp growth, surpassing the expected 0.8% [3]. - Gross margin was reported at 38.2%, outperforming the anticipated 37.1% [3]. - Despite a slight sales decline of 1.9% year-over-year, the results beat expectations [11]. Guidance and Future Outlook - For FY25, Ulta guided for 0%-1% comp growth and EPS of $22.50-$22.90, slightly below consensus but better than feared [4]. - The expected mid-point year-over-year EPS decline of 11% reflects significant investments in brand building, digital, and personalization initiatives [4]. - Management remains optimistic about strong beauty demand and market share recovery despite macroeconomic challenges [11]. Analyst Ratings and Price Targets - Goldman Sachs analyst reiterated a Neutral rating and lowered the price forecast from $392.00 to $384.00 [1]. - Stifel analyst maintained a Hold rating and reduced the price target from $475.00 to $400.00 [3]. - Piper Sandler analyst reiterated a Neutral rating and lowered the price forecast from $425.00 to $364.00 [5]. - Canaccord Genuity analyst reiterated a Buy rating and adjusted the price forecast from $538.00 to $526.00 [10]. - Telsey Advisory Group analyst reiterated an Outperform rating and lowered the price target from $500.00 to $460.00 [12]. Market Reaction - Following the earnings report, Ulta shares traded higher by 12.6% at $353.99 [13].

Shares of cosmetics retailer Ulta Beauty (ULTA 11.79%) popped on Friday after the company reported financial results for the fourth quarter of 2024. As of 11:45 a.m. ET, Ulta Beauty stock was up 13%.The year ended better than expectedYesterday, Ulta Beauty stock had dropped to its lowest price in nearly four years, showing just how much investors had turned on this beauty retailer. But the stock price is prettier now that the company just reported full-year net sales of $11.3 billion, higher than management ...

Core Insights - Ulta Beauty Inc reported strong fourth-quarter earnings, with earnings per share at $8.46, surpassing the consensus estimate of $7.10, and revenue at $3.49 billion, exceeding the projected $3.46 billion [1][2] Group 1: Earnings Performance - The company posted earnings of $8.46 per share, significantly above the expected $7.10 [1] - Revenue for the quarter was $3.49 billion, which also exceeded the forecast of $3.46 billion [1] Group 2: Future Guidance - Ulta issued weaker-than-expected full-year guidance, anticipating comparable sales to be flat or increase by just 1% in 2025, below analyst expectations of 1.2% growth [2] - The company forecasted lower-than-expected profits for the upcoming year, focusing on restructuring and long-term growth investments [2] Group 3: Stock Performance - Following the earnings report, Ulta's stock rose by 7.2% to $337, recovering from a pre-earnings drop to $328.45, its lowest since May 2021 [3] - Year-to-date, the stock has reduced its deficit to 23%, but remains down over 40% in the last 12 months [3] Group 4: Analyst Reactions - At least 12 analysts lowered their price targets post-earnings, with Wells Fargo adjusting its target from $360 to $310, representing an 8% discount to the current stock price [4] - The consensus 12-month average price target stands at $424.88, indicating a 27.2% premium to Ulta's current trading level, suggesting potential for further price-target reductions [4] Group 5: Options Activity - Options trading activity has increased significantly, with 6,782 calls and 6,363 puts exchanged, which is seven times the typical volume [5] - The most active options contract is the weekly 3/14 350-strike call, indicating new positions being opened [5]

Core Insights - Ulta Beauty, Inc. (ULTA) experienced a 6.5% increase in share price after reporting strong fourth-quarter fiscal 2024 results, with both top and bottom lines exceeding Zacks Consensus Estimates [1][2] Financial Performance - The company reported fourth-quarter earnings per share of $8.46, surpassing the Zacks Consensus Estimate of $7.10, and an increase from $8.08 per share in the previous year [2] - Net sales declined 1.9% year over year to $3,487.6 million, primarily due to an additional sales week in fiscal 2023, but still exceeded the Zacks Consensus Estimate of $3,463.7 million [3] - Comparable sales rose 1.5%, driven by a 3% increase in average ticket, although transaction volume decreased by 1.4% [4] Profitability Metrics - Gross profit totaled $1,333.7 million, down from $1,340.6 million, but improved as a percentage of net sales to 38.2% from 37.7% due to reduced inventory shrink and improved merchandise margins [5] - Selling, general and administrative (SG&A) expenses decreased to $815.6 million from $820.4 million, but as a percentage of net sales, SG&A expenses increased to 23.4% from 23.1% [6] - Operating income was $516.3 million compared to $517.1 million in the same quarter last year, with operating income as a percentage of net sales increasing to 14.8% from 14.5% [6] Financial Health - The company ended the quarter with cash and cash equivalents of $703.2 million and net merchandise inventories of $2 billion [7] - Stockholders' equity was reported at $2,488.4 million, with net cash provided by operating activities amounting to $1,338.7 million for the 52 weeks ended February 1, 2025 [7] Share Repurchase and Capital Expenditures - Ulta Beauty repurchased 620,053 shares for $249.5 million in the quarter, with $2.7 billion remaining under its $3 billion buyback program [8] - Management anticipates capital expenditures in the range of $425-$500 million for fiscal 2025 [8] Store Expansion Plans - In the reported quarter, the company opened nine stores, remodeled five, and closed one, ending with 1,445 stores totaling 15.1 million square feet [9] - For fiscal 2025, Ulta expects to open nearly 60 net new stores and undertake 40-45 store remodeling and relocation projects [9] Future Outlook - Ulta Beauty projects fiscal 2025 net sales between $11.5 billion and $11.6 billion, compared to $11.3 billion in fiscal 2024, with comparable sales expected to be flat to up 1% year over year [10] - Management anticipates an operating margin between 11.7% and 11.8% for fiscal 2025, with earnings per share expected in the range of $22.50-$22.90 [11]

Core Insights - Ulta Beauty is focusing on digital acceleration, personalization, and launching a new marketplace to enhance customer experience and regain market share lost in 2024 [1][2][6] Digital Strategy - The company plans to enhance its digital presence by adding new features to its app and website, aiming to elevate guest experience and engagement [2][3] - Automation and real-time content will be increased across digital channels to deepen guest engagement [3] Marketplace Initiative - A new marketplace will be launched on an invitation-only basis for brands, allowing Ulta Beauty to curate product selections [4] - Customers will earn points on marketplace purchases and can return these purchases to Ulta Beauty stores, making the process seamless [4][5] Organizational Changes - To support these initiatives, Ulta Beauty has created new roles, including chief retail officer and chief technology and transformation officer [5] - The company is building a dedicated team for selling and operations related to the new marketplace model [5] Market Context - The beauty industry is experiencing heightened competition and changing consumer expectations, prompting Ulta Beauty to adapt quickly [2][6] - Despite a slowdown in the beauty category in 2024, growth is still expected in the low- to mid-single-digit range [6]

Ulta Beauty, Inc. (NASDAQ:ULTA) Q4 2024 Earnings Conference Call March 13, 2025 4:30 PM ET Company Participants Kiley Rawlins - Vice President, Investor Relations Kecia Steelman - Chief Executive Officer Paula Oyibo - Chief Financial Officer Conference Call Participants Dana Telsey - Telsey Advisory Group Lorraine Hutchinson - Bank of America Michael Binetti - Evercore ISI Adrienne Yih - Barclays Simeon Gutman - Morgan Stanley Steven Forbes - Guggenheim Securities Mark Altschwager - Baird Michael Lasser - U ...

Financial Performance - For the quarter ended January 2025, Ulta Beauty reported revenue of $3.49 billion, a decrease of 1.9% year-over-year [1] - EPS for the quarter was $8.46, an increase from $8.08 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.46 billion by +0.69% [1] - EPS also surpassed the consensus estimate of $7.10 by +19.15% [1] Key Metrics - Comparable sales increased by 1.5%, outperforming the 11-analyst average estimate of 0.4% [4] - Total stores open at the end of the quarter were 1,445, slightly below the nine-analyst average estimate of 1,447 [4] - Total gross square footage at the end of the quarter was 15,110.17 thousand square feet, compared to the seven-analyst average estimate of 15,130.46 thousand square feet [4] - Net sales per average total square footage were $230.81, exceeding the five-analyst average estimate of $230.13 [4] - The number of stores opened during the quarter was 9, below the average estimate of 12 by five analysts [4] Sales by Category - Net Sales by Primary Category - Other: 2%, matching the average estimate [4] - Net Sales by Primary Category - Services: 3%, below the average estimate of 4% [4] - Net Sales by Primary Category - Fragrance: 17%, slightly above the average estimate of 16.5% [4] - Net Sales by Primary Category - Haircare: 19%, exceeding the average estimate of 18.5% [4] - Net Sales by Primary Category - Cosmetics: 36%, below the average estimate of 39% [4] Stock Performance - Ulta's shares have returned -11.8% over the past month, compared to the Zacks S&P 500 composite's -7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Ulta Beauty reported quarterly earnings of $8.46 per share, exceeding the Zacks Consensus Estimate of $7.10 per share, and showing an increase from $8.08 per share a year ago, resulting in an earnings surprise of 19.15% [1] - The company achieved revenues of $3.49 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.69%, although this represents a decline from year-ago revenues of $3.55 billion [2] - Over the last four quarters, Ulta has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] 分组2 - The stock has underperformed, losing about 24.3% since the beginning of the year, compared to a decline of 4.8% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $6.18 on revenues of $2.8 billion, and for the current fiscal year, it is $23.62 on revenues of $11.67 billion [7] - The Zacks Industry Rank for Retail - Miscellaneous is in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - Ulta Beauty reported better-than-expected earnings for fiscal 2024 fourth quarter, with EPS of $8.46 surpassing the consensus estimate of $7.13 and revenue of $3.49 billion exceeding projections of $3.47 billion, despite a year-over-year revenue decline of 1.9% due to an extra week in the previous fiscal year [2][7]. Financial Performance - Q4 2024 diluted EPS was $8.46, up 4.7% from $8.08 in Q4 2023, exceeding analysts' estimate of $7.13 [4]. - Revenue for Q4 2024 was $3.49 billion, a decrease of 1.9% from $3.55 billion in Q4 2023, but above the estimated $3.47 billion [4]. - Gross profit margin improved to 38.2% from 37.7% year-over-year [4]. - Net income for the quarter was $393.3 million, slightly down from $394.4 million in the previous year, reflecting a 0.3% decline [4]. Market Strategy - Ulta Beauty operates over 1,400 stores and employs an integrated omnichannel strategy, combining physical presence with online engagement to enhance customer experience and loyalty [5]. - The company has focused on expanding its loyalty program, which has over 43 million members contributing to more than 95% of sales [6]. - Ulta's product offerings balance mass and prestige brands, aiming to capture a broad customer base [6]. Sales Performance - Comparable sales increased by 1.5%, driven by a 3% rise in ticket size, although transactions decreased by 1.4% [8]. - The share of cosmetics in overall sales fell from 39% to 36%, while fragrances increased from 15% to 17%, indicating changing customer preferences [8]. Cost and Competition - SG&A expenses rose to 23.4% of net sales from 23.1%, influenced by cost pressures in store payroll and benefits, alongside increased competition from over 1,000 new beauty distribution channels [9]. - The transition in leadership with COO Kecia Steelman succeeding David Kimbell as CEO may signal strategic changes amid current market conditions [9]. Future Outlook - For fiscal 2025, Ulta Beauty expects net sales between $11.5 billion and $11.6 billion, with comparable sales growth projected to be flat to 1% [10]. - Projected EPS for fiscal 2025 ranges from $22.50 to $22.90, reflecting a cautious outlook due to market uncertainties [10]. - Strategic plans include investments in store expansion, wellness products, and digital innovation [10].

An exterior view of an Ulta Beauty store at the Monroe Marketplace Shopping Center.Even the beauty industry is expecting a weak 2025. Ulta Beauty on Thursday gave worse full-year profit and revenue guidance than Wall Street expected, after reporting holiday-quarter results that beat analyst forecasts. The retailer, which appointed Kecia Steelman as its new CEO in January, said it's expecting comparable sales to be flat or grow 1% in 2025, while analysts had anticipated they would rise by 1.2%, according to ...