Ulta Beauty Shares Drop 7% After Soft Outlook Despite Strong Q4 Results

Core Viewpoint - Ulta Beauty's shares declined over 7% in premarket trading due to guidance that slightly missed expectations, despite reporting stronger-than-expected fourth-quarter results [1] Group 1: Financial Performance - For fiscal 2027, Ulta expects earnings per share between $28.05 and $28.55, below analyst forecasts of $28.57 [1] - The company projected net sales growth of 6% to 7% and earnings growth of approximately 9.4% to 11.4% [1] - For the fourth quarter, Ulta reported earnings of $8.01 per share, exceeding analyst estimates of $7.93 [2] - Revenue for the fourth quarter reached $3.9 billion, surpassing expectations of $3.81 billion [2] - Net sales rose 11.8% year over year, driven by stronger comparable sales, the acquisition of Space NK, and contributions from new store openings [3] Group 2: Sales Metrics - Comparable sales are expected to increase between 2.5% and 3.5% [2] - Comparable sales increased 5.8% during the quarter, supported by a 4.2% rise in average ticket size and a 1.6% increase in transaction volume [2]