From Yahoo Finance: 2025-05-29 17:05:00

Ulta Beauty raised profit forecast after beating quarterly results, citing lower inventory losses and new product launches. Shares rose 8% after the news. Sales increased, especially from younger shoppers buying trendy brands. The company expects annual profit to be between $22.65 to $23.20 per share.

Ulta Beauty’s success is attributed to introducing celebrity-owned brands like Fenty Beauty and investing in marketing. Quarterly sales exceeded estimates at $2.85 billion, with a 2.9% rise in comparable sales. The company’s quarterly adjusted profit of $6.70 per share also surpassed expectations.

Budget brand Elf Beauty saw strong demand, while luxury firms like Estee Lauder faced challenges due to tariff uncertainty. The unpredictable tariff shifts under the Trump administration have disrupted businesses globally and caused consumer uncertainty.

Ulta Beauty expects comparable sales for fiscal 2025 to be flat to up 1.5%, reflecting uncertainty in the operating environment. CEO Kecia Steelman emphasized the fluidity of the current market conditions. Lower inventory losses and damages helped offset higher store and supply chain costs.

Read more: Ulta Beauty raises annual profit forecast, posts upbeat quarter on resilient demand