Key Takeaways Ulta Beauty opens its first international stores in Mexico, starting in Mexico City and Metepec.The move highlights ULTA's strategy to expand globally with curated beauty products and services.35 brands, including exclusives and Mexican labels, feature in Ulta Beauty's new Mexico stores.Ulta Beauty, Inc. (ULTA) maintains its leadership in beauty retail by uniting mass, prestige and luxury products within a dynamic and inclusive shopping experience. The company's ability to generate traffic gro ...

Ulta Beauty (ULTA) FY 2025 Conference September 04, 2025 08:55 AM ET Company ParticipantsKate McShane - Managing DirectorKecia Steelman - President, CEO & DirectorChris Lialios - Interim CFOKate McShaneOkay. Good morning, everyone. It's my pleasure to introduce Ulta Beauty and to moderate this fireside chat. Today, we have with us Keisha Steelman, President and Chief Executive Officer of Ulta. She's been in the role since January 2025 and previously served in a number of leadership roles since joining the c ...

A sign hangs in a GAP Outlet store window on May 29, 2025 in Chicago, Illinois.Gap on Thursday announced it's expanding into beauty starting with its Old Navy brand, a strategic shift by the apparel company.Its initial test will feature beauty and personal care products at 150 Old Navy stores, including dedicated beauty associates and some shop-in-shops. The company plans to scale the beauty business next year.It is unclear if the company eventually plans to put beauty products in Gap brand stores."Gap Inc. ...

Ulta Beauty (ULTA) FY 2025 Conference September 04, 2025 08:55 AM ET Speaker0Okay. Good morning, everyone. It's my pleasure to introduce Ulta Beauty and to moderate this fireside chat. Today, we have with us Keisha Steelman, President and Chief Executive Officer of Ulta. She's been in the role since January 2025 and previously served in a number of leadership roles since joining the company in July 2014.And we also have with us Chris Liolas, interim chief financial officer of Ulta as of June 25, previously ...

Key Takeaways Signet posted Q2 EPS of $1.61, up 28.8% Y/Y, and revenues of $1.54B, both ahead of estimates.Gross margin rose 60 bps to 38.6%, while adjusted operating margin improved 100 bps to 5.6%.Signet raised FY26 sales, EPS and operating income guidance following its strong Q2 results.Signet Jewelers Limited (SIG) posted impressive second-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Additionally, both revenues and earnings increased year over year. Sa ...

Ulta Beauty, Inc. ULTA shares slipped Friday despite the beauty retailer delivering better-than-expected quarterly results and raising its full-year outlook.The company reported second-quarter revenue of $2.79 billion, topping analyst estimates of $2.67 billion. Earnings of $5.78 per share also beat expectations of $4.97, according to Benzinga Pro. Ulta lifted its fiscal 2025 revenue guidance to between $12 billion and $12.1 billion. That’s up from its prior forecast of $11.5 billion to $11.7 billion, and n ...

Group 1 - Ulta Beauty reported revenue of $2.79 billion for the quarter ended July 2025, reflecting a year-over-year increase of 9.3% [1] - The company's EPS for the quarter was $5.78, up from $5.30 in the same quarter last year, indicating a strong performance [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.65 billion by 5.1%, and the EPS surpassed the consensus estimate of $5.03 by 14.91% [1] Group 2 - Comparable sales increased by 6.7% year-over-year, significantly higher than the average estimate of 2.2% from nine analysts [4] - The total number of stores open at the end of the quarter was 1,473, surpassing the average estimate of 1,466 from seven analysts [4] - The company opened 24 new stores during the quarter, exceeding the average estimate of 13 based on five analysts [4] Group 3 - Total gross square footage at the end of the quarter was 15,353.55 thousand square feet, compared to the average estimate of 15,293.55 thousand square feet [4] - Net sales per average total square footage were $181.62, higher than the estimated $175.52 from four analysts [4] - Ulta's stock has returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +1.5% change [3]

Financial Data and Key Metrics Changes - For the second quarter, net sales increased by 9.3% to $2.8 billion compared to $2.6 billion last year [8][35] - Operating profit increased by 4.8% to $345 million, with an operating margin of 12.4%, down from 12.9% last year [41] - Diluted earnings per share rose by 9.1% to $5.78, including a $0.03 benefit from income tax accounting for stock-based compensation [41] Business Line Data and Key Metrics Changes - Comparable sales grew by 6.7%, driven by a 3.7% increase in transactions and a 2.9% increase in average ticket [36] - Fragrance was the strongest performing category with robust double-digit growth, supported by successful promotional events [13] - Skin care and wellness saw high single-digit growth, while makeup delivered mid single-digit comp growth [14][15] Market Data and Key Metrics Changes - The U.S. beauty category showed stable growth, with low single-digit growth in mass and mid single-digit growth in prestige beauty [10] - The wellness market is projected to be a $410 billion market in 2024, growing faster than beauty [67] Company Strategy and Development Direction - The company is focused on its "Ulta Beauty Unleashed" strategy, which aims to enhance core business growth and improve operational excellence [9][21] - The acquisition of Space NK marks a significant step in international expansion, allowing entry into the UK market with an established player [26][27] - The company plans to launch a curated online marketplace to explore a broader array of beauty and wellness products [29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, acknowledging ongoing macroeconomic uncertainties while highlighting strong first-half performance [33][46] - The company anticipates comp sales growth in the second half to be flat to low single digits, reflecting a prudent approach to planning [43][44] - Management emphasized the importance of employee engagement and culture as a competitive advantage [30] Other Important Information - The company hosted over 30,000 events during the quarter to enhance customer engagement and brand experience [17] - The decision to end the partnership with Target will conclude in August 2026, with minimal impact on net sales [31][32] Q&A Session Summary Question: What is the sustainability of the initiatives under the Beauty Unleashed plan? - Management is pleased with the team's response and believes momentum will continue, but acknowledges higher comps in the back half of the year [52] Question: Can you clarify the assumptions behind the comp range for the back half of the year? - Management remains cautious but has modestly increased expectations for the second half, reflecting less uncertainty in the macro environment [62] Question: How is the promotional backdrop in the beauty sector evolving? - The company has optimized promotional strategies, reducing less productive events and aligning offers with consumer shopping behavior [65] Question: What is the outlook for the wellness category? - The wellness market is recognized as a significant growth opportunity, with plans to expand product offerings and store footprint [67] Question: How are the stores recovering from previous competitive pressures? - Management noted steady improvement in comp trends and emphasized the importance of the loyalty program in recapturing customers [78]

Financial Data and Key Metrics Changes - Net sales increased by 9.3% to $2.8 billion compared to $2.6 billion last year [6][32] - Operating profit increased by 4.8% to $345 million, with an operating margin of 12.4%, down from 12.9% last year [37] - Diluted earnings per share rose by 9.1% to $5.78, including a $0.03 benefit from income tax accounting for stock-based compensation [37] Business Line Data and Key Metrics Changes - Comparable sales grew by 6.7%, driven by a 3.7% increase in transactions and a 2.9% increase in average ticket [33] - Fragrance category led with double-digit growth, supported by successful promotions and new brand launches [12] - Skin care and wellness category saw high single-digit growth, while makeup delivered mid single-digit comp growth [13][14] Market Data and Key Metrics Changes - The U.S. beauty category showed stable growth, with low single-digit growth in mass and mid single-digit growth in prestige beauty [8] - Engagement with beauty and wellness remains healthy, with consumers prioritizing their beauty regimens despite economic pressures [9] Company Strategy and Development Direction - The company is focused on its "Ulta Beauty Unleashed" strategy, which aims to enhance core business growth and improve operational excellence [7][19] - International expansion includes the acquisition of Space NK to enter the UK market and plans for new stores in Mexico and the Middle East [23][25] - The company is enhancing its assortment and brand building capabilities, launching 24 new brands during the quarter [20] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about consumer spending in the second half of the year, despite strong first-half performance [29][43] - The company expects consolidated net sales for the year to be between $12 billion and $12.1 billion, with comp sales growth projected at 2.5% to 3.5% [40] - Operating profit is expected to decrease in the high single-digit range, reflecting ongoing macroeconomic uncertainties [41] Other Important Information - The company ended the quarter with $243 million in cash and cash equivalents and $289 million in short-term debt [38] - SG&A expenses increased by 15% to $742 million, influenced by higher incentive compensation and transaction expenses related to the Space NK acquisition [36] Q&A Session Summary Question: What is the sustainability of the initiatives under the Beauty Unleashed plan? - Management expressed confidence in the momentum of the Beauty Unleashed plan but acknowledged higher comps in the second half of the year [45][48] Question: Can you clarify the assumptions behind the comp range for the back half of the year? - Management indicated that while they are cautiously optimistic, they expect comp sales to be flat to low single digits in the second half due to ongoing economic conditions [52][57] Question: How is the promotional backdrop in the beauty sector evolving? - Management noted that promotional activity has been lower than in previous years, with a focus on optimizing key offers and events [60][61] Question: What are the growth prospects for the wellness category? - The wellness market is seen as a significant growth opportunity, with plans to expand product offerings and store footprint [63] Question: How is the company addressing competitive pressures and store recovery? - Management reported steady improvement in comp trends and emphasized the importance of their loyalty program in recapturing customers [70][74]

Core Insights - Ulta Beauty, Inc. (ULTA) is expected to report second-quarter fiscal 2025 earnings on August 28, after market close [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal second-quarter revenues is $2.65 billion, reflecting a 4% increase from the prior-year quarter [2] - The consensus estimate for quarterly earnings has risen by 2.3% in the last 30 days to $4.98 per share, indicating a decline of 6% from the figure reported in the year-ago quarter [2] - Ulta Beauty has delivered a trailing four-quarter earnings surprise of 11.9%, on average [2] Growth Drivers - Ulta Beauty is a leader in beauty retail, integrating mass, prestige, and luxury brands into a unique shopping experience [3] - The company's omnichannel strategy combines physical retail with digital innovations, enhancing customer engagement and sales through upgraded mobile app features and AI-driven personalized experiences [3] - Continued investments in marketing and social platforms are enhancing brand visibility, while a focus on product assortment and loyalty engagement is driving traffic [4] - The emphasis on skincare, particularly strong performances from brands like Sol de Janeiro and Tatcha, is contributing to growth [4] Challenges - Ulta Beauty's fiscal second-quarter performance is under pressure from rising selling, general and administrative (SG&A) expenses, which are expected to increase by 180 basis points to 27.1% of net sales [5] - Margin performance is likely to be affected by increased supply-chain expenses [5] - A persistent decline in the makeup category poses a risk to the company's growth momentum [5] Earnings Prediction - The model predicts an earnings beat for Ulta Beauty, supported by a positive Earnings ESP of +1.19% and a Zacks Rank of 2 (Buy) [6][7]