Exhibit 99.1 ULTA BEAUTY ANNOUNCES FIRST QUARTER FISCAL 2025 RESULTS Net Sales Increased 4.5% to $2.8 Billion Comparable Sales Increased 2.9% Net Income of $305.1 Million or $6.70 Per Diluted Share Company Updates Fiscal 2025 Guidance Bolingbrook, IL – May 29, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period ("first quarter") ended May 3, 2025. | | | 13 Weeks Ended | | | | --- | --- | --- | --- | --- | | | May 3, | | May 4, | | | (Dollars in millions, ex ...

Core Viewpoint - Analysts forecast a quarterly earnings per share (EPS) of $5.75 for Ulta Beauty, indicating an 11.1% year-over-year decline, while revenues are expected to reach $2.79 billion, reflecting a 2.2% increase compared to the same quarter last year [1]. Group 1: Earnings Estimates - The consensus EPS estimate has been revised upward by 0.3% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Group 2: Key Metrics Projections - Analysts estimate that the total number of stores open at the end of the quarter will be 1,458, up from 1,395 in the same quarter last year [5]. - The total gross square feet at the end of the quarter is projected to be 15,224.74 thousand square feet, compared to 14,614.76 thousand square feet a year ago [5]. - The number of stores opened during the quarter is expected to be 14, an increase from 12 in the same quarter last year [6]. - The total number of stores open at the beginning of the quarter is projected to be 1,445, compared to 1,385 a year ago [6]. Group 3: Sales by Category - Net sales by primary category for services are projected at 4.0%, consistent with the previous year's figure [7]. - Net sales by primary category for fragrance are expected to reach 11.5%, up from 10% a year ago [7]. - Net sales by primary category for haircare are projected at 19.0%, matching last year's performance [8]. - Net sales by primary category for cosmetics are expected to be 40.5%, down from 42% in the same quarter last year [8]. Group 4: Stock Performance - Over the past month, Ulta's shares have returned +6.3%, compared to a +10.7% change in the Zacks S&P 500 composite [9]. - Ulta currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9].

Core Viewpoint - Ulta Beauty, Inc. is expected to report its first-quarter fiscal 2025 earnings on May 29, with a consensus estimate for revenues at $2.79 billion, reflecting a 2.2% increase year-over-year, while earnings per share are projected to decline by 11.1% to $5.75 [1][2]. Group 1: Earnings Predictions - The Zacks Model predicts an earnings beat for Ulta Beauty, supported by a positive Earnings ESP of +0.23% and a Zacks Rank of 3 (Hold) [3][4]. - Ulta Beauty has historically delivered a trailing four-quarter earnings surprise of nearly 9% on average [2]. Group 2: Growth Drivers - The company continues to lead the beauty retail sector by integrating mass, prestige, and luxury brands, enhanced by a strong omni-channel strategy that combines physical retail expansion with digital innovation [5]. - Investments in marketing and social platforms are increasing brand visibility, while a focus on product assortment and loyalty engagement is driving customer traffic [5]. - The skincare segment, particularly brands like Sol de Janeiro and TATCHA, is contributing to growth, positioning the company favorably for the upcoming quarter [6]. Group 3: Challenges - Ulta Beauty faces pressure from rising selling, general and administrative (SG&A) expenses, which are expected to increase by 220 basis points to 26.6% of net sales for the fiscal first quarter [7]. - Margin performance is likely to be affected by lower merchandise margins and increased supply chain expenses [7]. - The ongoing decline in the Makeup category presents a risk to the company's growth momentum [7]. Group 4: Stock Performance and Valuation - Ulta Beauty's stock has increased by 12.8% over the past three months, outperforming the Zacks Retail - Miscellaneous industry's decline of 7.1% [9]. - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 17.25, slightly above the industry average of 16.12 [9]. Group 5: Investment Outlook - Despite near-term challenges such as rising SG&A expenses and margin pressure, Ulta Beauty's long-term fundamentals remain solid, suggesting a balanced risk-reward profile for investors [10].

Core Viewpoint - The market anticipates a year-over-year decline in Ulta Beauty's earnings despite an increase in revenues for the quarter ending April 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Ulta Beauty is expected to report quarterly earnings of $5.75 per share, reflecting an 11.1% decrease year-over-year, while revenues are projected to reach $2.79 billion, a 2.2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.31% higher in the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading, which is currently at +0.23% for Ulta, indicates a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - Ulta has exceeded consensus EPS estimates in three out of the last four quarters, with a notable surprise of +19.15% in the last reported quarter [12][13]. Additional Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [14][16].

Company Performance - Ulta Beauty's stock closed at $410.09, reflecting a -0.7% change compared to the previous day, underperforming the S&P 500's gain of 0.09% [1] - Over the past month, Ulta Beauty's shares have increased by 15.44%, surpassing the Retail-Wholesale sector's gain of 13.17% and the S&P 500's gain of 13.05% [1] Upcoming Earnings - The upcoming earnings report for Ulta Beauty is scheduled for May 29, 2025, with an expected EPS of $5.73, indicating an 11.44% decrease from the same quarter last year [2] - The consensus estimate projects revenue of $2.79 billion, which represents a 2.19% increase from the equivalent quarter last year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates predict earnings of $23.03 per share and revenue of $11.57 billion, reflecting changes of -9.12% and +2.42% respectively from the previous year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Ulta Beauty are crucial as they often indicate the latest business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [3][4] - The Zacks Rank system, which assesses estimate changes, currently ranks Ulta Beauty at 3 (Hold) [5] Valuation Metrics - Ulta Beauty has a Forward P/E ratio of 17.93, which is higher than the industry's average Forward P/E of 13.79 [6] - The company also has a PEG ratio of 2.45, compared to the Retail - Miscellaneous industry's average PEG ratio of 2.33 [6] Industry Context - The Retail - Miscellaneous industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Ulta Beauty's stock has increased by 12.9% over the past month, while the industry and S&P 500 have grown by 16.1% and 15.4% respectively, prompting investors to consider whether to hold or take profits [1] Company Strategy and Performance - Ulta Beauty has transformed the beauty industry by combining mass, prestige, and luxury brands in an accessible shopping environment, which has driven significant profitable growth [3] - The company maintains a balanced approach between online and physical stores, with e-commerce sales growing mid-single digits in Q4 of fiscal 2024, reflecting a shift towards digital beauty shopping [4] - The skincare category has seen mid-single-digit comparable sales growth in Q4 of fiscal 2024, driven by strong demand for body care and new brands like Sol de Janeiro, Naturium, and TATCHA [5] Challenges and Concerns - The fourth-quarter results revealed a mid-single-digit decline in comparable sales for the makeup category, primarily due to softness in mass makeup, which is critical for driving traffic and sales [6] - Rising operating expenses are a concern, with SG&A expenses increasing to 23.4% of net sales in Q4 of fiscal 2024, up from 23.1% the previous year, and expected to rise approximately 10% in fiscal 2025 due to strategic investments and higher payroll costs [7][8] Valuation - Ulta Beauty is trading at a forward 12-month price-to-earnings multiple of 17.38X, which is above the industry average of 16.81X, indicating potential overvaluation relative to its fundamentals [9] Investment Outlook - The recent stock rally reflects investor optimism driven by strong skincare performance, a resilient omnichannel strategy, and ongoing innovation, but challenges in the makeup category and rising expenses suggest the stock may be pricing in near-term perfection [12]

Group 1 - The article initiates coverage on Ulta Beauty (NASDAQ: ULTA) with a Buy rating and a price target of $432.81, highlighting it as the largest dedicated beauty retail network in the U.S. with over 1,300 stores and strong digital channels [1] - Ulta Beauty offers a range of products and services including cosmetics, skincare, salon services, and private-label products, indicating a diversified business model [1] - Moretus Research employs a structured framework to identify companies with durable business models and mispriced cash flow potential, focusing on U.S. public markets [1] Group 2 - The research emphasizes rigorous fundamental analysis combined with a judgment-driven process, aiming to provide clarity and actionable insights for investors [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model, emphasizing comparability and simplicity [1] - Moretus Research targets underappreciated companies undergoing structural changes or temporary dislocations, which can lead to asymmetric returns for investors [1]

Core Viewpoint - Ulta Beauty's stock performance has shown a recent decline, but it has outperformed the Retail-Wholesale sector and the S&P 500 over the past month, indicating potential resilience in its market position [1]. Financial Performance - Ulta Beauty is expected to report earnings of $5.73 per share on May 29, 2025, reflecting a year-over-year decline of 11.44%. Revenue is projected to be $2.79 billion, representing a 2.19% increase compared to the same quarter last year [2]. - For the entire fiscal year, earnings are estimated at $23.01 per share, down 9.19% from the previous year, while revenue is expected to reach $11.57 billion, up 2.41% [3]. Analyst Estimates - Recent modifications to analyst estimates for Ulta Beauty indicate changing business trends, with upward revisions suggesting analysts' optimism about the company's profitability [4]. - The Zacks Rank system, which reflects these estimate changes, currently rates Ulta Beauty as 3 (Hold), with a slight decrease of 0.15% in the consensus EPS estimate over the last 30 days [6]. Valuation Metrics - Ulta Beauty's Forward P/E ratio stands at 17.14, which is higher than the industry average of 14.21, indicating a premium valuation [7]. - The company's PEG ratio is 2.34, compared to the industry average of 1.53, suggesting that Ulta Beauty's expected earnings growth is factored into its valuation [7]. Industry Context - The Retail - Miscellaneous industry, which includes Ulta Beauty, has a Zacks Industry Rank of 155, placing it in the bottom 38% of over 250 industries, indicating weaker performance relative to other sectors [8].

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]

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]