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Ulta Beauty (ULTA, Financial) shares surged sharply on Friday morning, gaining more than 8% after robust Q4 earnings offset a conservative FY25 outlook.
Ulta Beauty reported earnings per share of $8.46, beating the consensus estimate of $7.12. Revenue totaled $3.49 billion, topping analysts' forecast of $3.46 billion.
For fiscal year 2025, the company forecasts total sales between $11.5 billion and $11.6 billion, slightly below the consensus of $11.67 billion. EPS guidance is set between $22.50 and $22.90, down from $25.34 in FY24 and below the $23.54 estimate. Comparable sales are expected to be flat to up 1%, missing the forecast of 1.24%, while the operating margin is projected at 11.7% to 11.8%, falling short of the 11.9% consensus.
Ulta Beauty, a leader in the beauty retail sector, is under pressure, and FY25 guidance shows modest growth in a competitive environment. Although this outlook remains cautious, Friday's share rally was boosted by the strong Q4 performance.
This article first appeared on GuruFocus.