Ulta Beauty shares fall as company sees 'headwinds' in beauty industry

Core Insights - Ulta Beauty is facing "headwinds" and increased competition in the beauty industry, leading to a decline in share prices [1] - The company maintains its fiscal year forecast, expecting net sales between $11 billion and $11.2 billion, with comparable sales projected to decline by 2% to remain roughly flat [2] - For 2026 and beyond, Ulta targets 4% to 6% net sales growth and low double-digit diluted earnings per share growth, with operating profit growth in the mid single digits and operating margins around 12% of net sales [3] Company Strategy - CEO Dave Kimbell acknowledged that the current year has been more challenging than anticipated, citing normalization in the beauty category and increased competition, particularly in the prestige segment [4] - The company plans to enhance sales through partnerships with new brands, expanding its loyalty program, and personalizing promotions to better engage customers [4][5] - Despite anticipated near-term challenges, the company expresses confidence in its long-term growth strategy [5]