Ulta Beauty Demonstrates Resilience In Q4 With Strong Earnings And Strategic Expansion
$ULTA
The beauty retailer reported a profit of $393.3 million for the 13-week period ending February 1, 2025, maintaining a trajectory despite a slight dip from the previous year’s $394.4 million. Ulta Beauty Inc. (NASDAQ: ULTA announced earnings per share of $8.46 on revenue of $3.5 billion, exceeding analyst predictions which had anticipated EPS of $7.11 on revenue of $3.46 billion. This performance marks a commendable achievement, particularly noting a 1.5% increase in comparable sales.
The company has also been active in returning value to shareholders, repurchasing 620,053 shares at cost of $249.5 million during the quarter. It repurchased 2.5 million shares, spending $1.0 billion, underlining its ongoing commitment to shareholder returns.
Ulta Beauty’s CEO, Kecia Steelman, emphasized the company’s commitment to strategic investments aimed at fueling future growth. These include optimizing business operations and expanding the company’s footprint, both physically and digitally.
In the fourth quarter alone, Ulta Beauty opened nine new stores and remodeled five, ending the fiscal year with 1,445 stores. As Ulta Beauty moves into fiscal 2025, the company plans to open approximately 60 new stores and undertake 40-45 remodel and relocation projects. These initiatives are expected to support a steady increase in operating margin, projected to be between 11.7% to 11.8% and contribute to a diluted earnings per share of $22.50 to $22.90.
Looking ahead, Ulta Beauty has set a guidance for fiscal 2025, projecting earnings per share in the range of $22.50 to $22.90 and revenue between $11.5 billion to $11.6 billion. With cash and cash equivalents totaling $703.2 million at the end of the fourth quarter.
**DISCLAIMER: THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS INVESTMENT ADVICE. INVESTING INVOLVES RISK, INCLUDING THE POTENTIAL LOSS OF PRINCIPAL. READERS ARE ENCOURAGED TO CONDUCT THEIR OWN RESEARCH AND CONSULT WITH A QUALIFIED FINANCIAL ADVISOR BEFORE MAKING ANY INVESTMENT DECISIONS.**
