Financial Data and Key Metrics Changes - Net sales for the fourth quarter decreased 1.9% to $3.5 billion compared to $3.6 billion in the previous year [29] - Comparable net sales increased 1.5%, driven by a 3% increase in average ticket, partially offset by a 1.4% decrease in transactions [30] - For the full year, net sales increased 0.8% to $11.3 billion, with comparable sales increasing 0.7% [36] Business Line Data and Key Metrics Changes - Fragrance was the strongest category with double-digit comp growth, driven by men's fragrance and multi-branded gift sets [33] - Skincare category comp sales increased in the mid-single digit range, while hair category comp sales increased in the low single digit range [33] - Makeup category experienced a mid-single digit decrease, largely driven by mass makeup [33] Market Data and Key Metrics Changes - The beauty category is expected to grow in the low to mid-single digit range over the next few years [14] - The competitive environment in beauty has intensified, with the company losing market share for the first time in 2024 [10][11] Company Strategy and Development Direction - The company is focusing on three main priorities: driving core business growth, scaling new accretive businesses, and realigning the foundation for the future under the "Ulta Beauty Unleashed" plan [17][20] - The company plans to enhance its assortment through investments in brand building and accelerate digital efforts [19][20] - The company aims to expand its wellness category and introduce new brands, with a focus on nutrition and mindfulness [70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by a dynamic macro environment but remains optimistic about consumer engagement in beauty [14][39] - The company expects 2025 to be a transition year, with net sales projected between $11.5 billion and $11.6 billion and comp sales growth in the range of flat to up 1% [40][41] - Operating profit is expected to decrease in the low double-digit range due to inflationary pressures and investments in the Ulta Beauty Unleashed plan [41][42] Other Important Information - The company plans to spend between $425 million and $500 million in CapEx for new stores, remodels, and IT [43] - The company has a target for cost optimization of $200 million to $250 million over the next three years [27] Q&A Session Summary Question: How is the company thinking about the in-store experience and guest presentation? - Management emphasizes the importance of simplifying focus and prioritizing core business growth, brand building, and operational excellence [47][48] Question: Can you provide an update on the store fleet and new openings? - The company has a robust process for real estate site selection and anticipates strong performance from new stores [56][58] Question: What are the critical pieces to rebuild the business moat? - Management believes a balanced approach focusing on brand building, personalization, and marketplace expansion is essential [62][64] Question: How does the company plan to address the competitive landscape? - The company is focused on controlling what it can control and optimizing its business model to maintain its competitive edge [96][92] Question: What is the company's exposure to tariffs and how does it plan to navigate this? - The company has limited exposure to direct imports and is closely monitoring the evolving tariff landscape [104][105]

Exhibit 99.1 ULTA BEAUTY ANNOUNCES FOURTH QUARTER FISCAL 2024 RESULTS Net Sales of $3.5 Billion Compared to $3.6 Billion in the Year-Ago Quarter Comparable Sales Increased 1.5% Net Income of $393.3 Million or $8.46 Per Diluted Share Bolingbrook, IL – March 13, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period ("fourth quarter") and fifty-two- week period ("fiscal year") ended February 1, 2025, compared to the comparable fourteen-week and fifty-three-week ...

Core Viewpoint - Ulta Beauty Inc is facing a challenging earnings report with expected declines in both earnings per share and revenue, leading to a 3.3% drop in share price as investors prepare for the announcement [1]. Financial Expectations - Analysts anticipate earnings of $7.05 per share for the fourth quarter, representing a 12.8% decrease from the previous year [1]. - Projected revenue for the fourth quarter is $3.46 billion, indicating a 2.8% year-over-year decline [1]. - For fiscal 2024, revenue is expected to increase slightly by 0.5% to $11.26 billion [1]. Stock Performance and Volatility - Ulta Beauty's stock has shown mixed performance post-earnings, with a 9% increase in December among four out of the last eight sessions finishing higher [2]. - Options traders are predicting an 11.3% price swing following the earnings report, which is significantly higher than the two-year average move of 6.1% [2]. Technical Analysis - The stock has declined from a peak of $460 on January 7, marking a 20.8% decrease year-to-date [3]. - The 20-day moving average has acted as resistance since early February, contributing to the stock's losses [3]. Options Market Sentiment - There is a bullish sentiment among options traders, with a call/put volume ratio of 2.01, placing it in the 90th percentile of its annual range [4]. - This indicates a higher-than-usual interest in long calls ahead of the earnings report [4]. Analyst Ratings and Short Interest - Analyst opinions are mixed, with 12 out of 28 analysts rating the stock as a "strong buy," while 13 recommend a "hold" and one a "strong sell" [5]. - Short interest has risen by 10.2% in the last two reporting periods, with shorted shares now making up 5.9% of the total available float [5].

Ulta Beauty, Inc. (ULTA) is likely to register top and bottom-line declines when it reports fourth-quarter fiscal 2024 earnings on March 13, after market close. The consensus mark for quarterly earnings has decreased by a penny in the past 30 days to $7.05 per share, indicating a 12.8% dip from the figure reported in the year-ago quarter. The consensus mark for fiscal 2024 earnings is pegged at $23.93 per share, implying a decline of 8.1% from the prior year’s reported figure. ULTA delivered a trailing four ...

The market expects Ulta Beauty (ULTA) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended January 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

Whenever Wall Street authoritative figures, such as a large institution or individual investor, decide to shift a view on a specific stock or industry, retail traders can significantly benefit from attempting to reverse engineer the reasoning behind such a decision and shift. Today, this signal comes through Warren Buffett, the legendary value investor who has been the center of attention after a few months of being relatively inactive. The latest headlines for Buffett include his choice to sell out some co ...

Group 1 - The analyst has extensive experience in investment banking, focusing on both public and private market opportunities, and has a strong background in consumer stocks [1] - The analyst emphasizes the importance of competitive advantages and growth prospects in investment decisions, influenced by notable figures like Ben Graham and Warren Buffett [1] - The analyst prefers a long-only investment strategy, finding shorting stocks to be challenging and less reliable [1] Group 2 - The analyst holds both CFA and CAIA charters, indicating a high level of professional qualification in investment analysis [1] - The analyst has experience using research tools such as Bloomberg and Factset, enhancing their ability to conduct thorough market analysis [1] - The analyst's approach includes using discounted cash flow (DCF) models as a supportive tool rather than the sole basis for investment recommendations [1]

Core Viewpoint - The beauty sector is experiencing significant declines in 2025, with Ulta Beauty, Coty, and e.l.f. Beauty all facing steep losses, but Ulta Beauty is positioned for a potential rebound due to its diverse product lineup and strong customer loyalty [12][13]. Ulta Beauty - Ulta Beauty ended 2024 down 11.24% and is currently down 16.05% year-to-date (YTD) [1] - The company reported fiscal Q3 2025 earnings per share (EPS) of $5.14, beating consensus estimates by $0.61, with revenues rising 1.7% year-over-year (YoY) to $2.53 billion [4] - Ulta Beauty issued an upside guidance for fiscal 2025 with EPS expected between $23.20 to $23.75, up from previous forecasts, and revenues projected between $11.1 billion to $11.2 billion [5] - The compound annual growth rate (CAGR) for Ulta Beauty has been 17% since 2010, with skincare being the strongest growth driver at a CAGR of 19.3% [3] Coty - Coty closed 2024 with a 43.96% loss and is down 19.83% YTD [1] - The company reported fiscal Q2 2025 EPS of $0.11, missing consensus estimates by $0.10, with revenues falling 3.3% YoY to $1.67 billion [7] - Coty faced challenges in China and other markets, impacting its sales of color cosmetics, although its Prestige Fragrances portfolio continued to perform well [6][8] e.l.f. Beauty - e.l.f. Beauty has seen a significant decline, with a 41.86% drop YTD as of February 14, 2025, and finished 2024 down 13.02% [1][2] - The company reported fiscal Q3 2025 EPS of $0.74, missing estimates by $0.02, but revenues surged 31.2% YoY to $355.3 million [11] - e.l.f. Beauty lowered its guidance for fiscal 2025 EPS to a range of $3.27 to $3.32, down from earlier estimates, with expected revenues between $1.300 billion to $1.310 billion [12]

Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and his affiliation with The Motley Fool, highlighting the potential for compensation through promotions [1] Company Insights - The Motley Fool has positions in and recommends Ulta Beauty, indicating a positive outlook on the company's stock [1]

Company Performance - Ulta Beauty (ULTA) closed at $412.15, reflecting a -1.52% change from the previous session, underperforming the S&P 500's daily loss of 0.51% [1] - Over the past month, Ulta Beauty shares have decreased by 2.48%, lagging behind the Retail-Wholesale sector's gain of 7.41% and the S&P 500's gain of 2.87% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $7.12, which represents an 11.88% decline compared to the same quarter last year [2] - Revenue is anticipated to be $3.46 billion, indicating a 2.6% decrease from the same quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at $23.99 per share, reflecting a -7.84% change from the prior year, while revenue is expected to be $11.27 billion, showing a +0.56% change [3] Analyst Forecasts - Recent revisions to analyst forecasts for Ulta Beauty are important, as upward revisions indicate analysts' positive outlook on the company's business operations and profit generation capabilities [4] Zacks Rank and Valuation - The Zacks Rank system currently rates Ulta Beauty at 2 (Buy), with a historical average annual gain of +25% for 1 rated stocks since 1988 [6] - Ulta Beauty has a Forward P/E ratio of 17.44, which is a premium compared to its industry's Forward P/E of 15.21 [6] PEG Ratio and Industry Ranking - The company has a PEG ratio of 1, compared to the Retail - Miscellaneous industry's average PEG ratio of 1.42 [7] - The Retail - Miscellaneous industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 15, placing it in the top 6% of over 250 industries [7][8]