Ulta Beauty (NASDAQ) outperformed market expectations for first-quarter profit, driven by steady demand for skincare and makeup products alongside easing input

Ulta Beauty Exceeds Q1 Profit Expectations, Shares Surge in Extended Trading


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Image credit: Carlos Rodríguez

Ulta Beauty (NASDAQ) outperformed market expectations for first-quarter profit, driven by steady demand for skincare and makeup products alongside easing input costs.

Key Financial Highlights:

  • Adjusted Earnings: Ulta reported adjusted earnings of $6.47 per share, surpassing analysts' expectations of $6.24 per share.
  • Net Sales: The company's quarterly net sales increased by 3.5% to $2.73 billion, slightly above the anticipated $2.72 billion, according to LSEG data.

Market Reaction:

  • Share Price: Shares of Ulta Beauty, which had declined by 22% year-to-date, rose by 8.4% in extended trading following the earnings announcement.

Demand and Strategic Moves:

  • Resilient Demand: Despite economic pressures on discretionary spending, demand for beauty and personal care products in the U.S. has remained strong.
  • Targeted Promotions: Ulta has implemented targeted promotions to attract cost-conscious consumers and introduced a luxury line featuring brands like Chanel and Dior to boost demand and support margins.
  • Cost Management: Lower input costs and the normalization of product prices have contributed to margin growth.

Consumer Behavior:

  • Foot Traffic: Data from indicates that Ulta's foot traffic gains outpaced those in the overall beauty and wellness segment from February through April, reflecting strong demand for affordable luxuries despite a challenging economic environment.


Ulta Beauty's strong first-quarter performance, driven by effective promotional strategies, luxury product launches, and efficient cost management, has led to a positive market response, as evidenced by the surge in its share price in extended trading.

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