Key facts
- Ulta Beauty raised its annual profit forecast to $28.36-$28.80 per share.
- The company increased its stock buyback target to $1.5 billion.
- Q1 GAAP EPS was $7.74, exceeding estimates by $0.83.
- Q1 revenue was $3.16 billion, surpassing expectations by $40 million.
- Comparable sales increased 5.3% in the quarter.
Ulta Beauty raised its annual profit forecast to $28.36-$28.80 per share and increased its stock buyback target to $1.5 billion, anticipating that leaner inventory-related losses and resilient demand for high-priced merchandise will help counter rising costs. Shares gained about 7% in extended trading. The company reported Q1 GAAP EPS of $7.74, exceeding analysts' estimate of $6.89 by $0.85, and revenue of $3.16 billion, surpassing expectations by $40 million. Comparable sales rose 5.3%, driven by more transactions and larger basket sizes. Gross profit jumped 13.8% to $1.3 billion, with gross margin expanding to 40.1% from 39.1% a year ago. CEO Kecia Steelman credited "broad-based growth across all channels and major categories" and noted market share gains in prestige beauty. The company launched its TikTok Shop and added new brands, while its loyalty program grew 4% to nearly 47 million members.