Ulta’s Beautiful Q1 Earnings Report Points to More Gains Ahead

From Nasdaq: 2025-06-02 17:26:00

Ulta Beauty Inc. (NASDAQ: ULTA) impressed investors with blowout Q1 2025 earnings, beating expectations and driving shares up over 11% in May. The company reported a 4.5% YOY increase in net sales, surpassing analyst estimates, with a 2.9% YOY growth in comparable sales driven by strong fragrance and skincare sales.

Despite tariff uncertainty, Ulta raised its FY 2025 guidance, expanding sales, comps, and EPS projections. The company’s strategic move allows room for upside surprises while implementing the Ulta Beauty Unleashed plan, including a loyalty program with 45 million members and exclusive brand releases to drive growth. Analysts raised price targets following the impressive earnings report, with the stock retracing over 50% of its decline from the all-time high. However, technical indicators suggest potential profit-taking as the rally may be overbought, providing better entry points in the future. Ulta Beauty, a popular beauty retailer, reported a 6.9% increase in sales for the fourth quarter of 2020. The company’s total sales reached $2.2 billion, with a 72.9% growth in online sales. Ulta also announced plans to open 40 new stores in 2021. The retailer’s loyalty program now has over 34 million members.



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