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Ulta Beauty has lifted its full-year guidance after a better-than-expected first quarter.
Net sales increased 4.5 percent to $2.8 billion in the first quarter ended May 3 compared to the same period a year earlier. Analysts had penciled in $2.7 billion.
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Comparable sales increased 2.9 percent compared to the first quarter of fiscal 2024.
“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth,” said Kecia Steelman, president and chief executive officer. “The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve. We believe our model uniquely positions us to win, and we will continue to focus on serving our guests while staying agile as we move through the year.”
During the quarter, fragrance was the strongest-performing category, delivering double-digit growth primarily driven by newness and women’s and gender-neutral fragrance brands.
Prestige skin care was flat for the quarter, while mass skin care decreased modestly.
The hair care category was also roughly flat for the quarter, with growth in hair color and accessories offset by decreases in hair care tools and mass hair care.
Comp sales in the makeup category, meanwhile, decreased slightly.
Net income was $305.1 million, compared to $313.1 million. Diluted earnings per share was $6.70, compared to $6.47. This beat Wall Street forecast of $5.81.
Ulta adjusted the top end of its full-year forecast for net sales to come in between $11.5 billion to $11.7 billion, compared with the previous forecast of $11.5 billion to $11.6 billion.
Diluted earnings per share are expected at $22.65 to $23.20, compared with prior estimates of $22.50 to $22.90.
“We believe it is prudent to take a cautious approach to our guidance for fiscal 2025. While the beauty category has historically been resilient through economic downturns, it has not been immune to consumer pressure,” said Paula Oyibo, chief financial officer at Ulta.
“The operating environment continues to be very dynamic, and the evolving global trade landscape has created more uncertainty related to consumer wallet pressures, especially for the second half of the year. For the year, we have updated our sales expectation to reflect our first-quarter results, as well as more uncertainty in the second half.”