Ulta Beauty (NASDAQ: ULTA) reported better-than-expected sales and profits for the fourth quarter on Thursday, signaling a thriving holiday season as customers flocked to its stores for everything from cosmetics to perfumes, driving shares up over 6% in after-hours trading.
The beauty retailer, like larger companies such as Walmart (NYSE: WMT) and Amazon.com (NASDAQ: AMZN), offered discounts during the Thanksgiving period to attract shoppers who had been holding onto their dollars for the holiday shopping rush.
Ulta’s performance stood out against weaker results from competitors. Companies like Coty (NYSE: COTY), Elf Beauty, and L’Oreal have reported slower growth in the U.S. mass beauty market, while Ulta bucked the trend.
Ulta’s Q4 net sales slipped 1.9% to $3.49 billion but topped estimates of $3.46 billion.
The retailer earned $8.46 per share for the quarter ending February 1, well above the $7.12 per share analysts had expected.
In January, Ulta tapped insider Kecia Steelman to replace retiring CEO Dave Kimbell. The leadership shift comes amid industry-wide challenges, with customers feeling the pinch of a potential economic slowdown.
However, Ulta Beauty (NASDAQ: ULTA) forecast annual sales and profit below expectations, citing potential price increases in cosmetics and fragrances due to impending trade policies from U.S. President Donald Trump and the European Union.
The company expects annual sales to fall between $11.5 billion and $11.6 billion, while analysts had estimated $11.67 billion. Additionally, Ulta forecasts its annual earnings per share (EPS) to range from $22.50 to $22.90, falling short of the estimated $23.47.
