Ulta Beauty’s annual profit forecast misses estimates as costs climb
FILE PHOTO: Makeup and other beauty products are locked behind plexiglass in the Ulta Beauty section of a Target store in White Plains, New York, U.S., November 17, 2022. REUTERS/Arriana McLymore/File Photo
ULTA
-0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
(Reuters) – Ulta Beauty (NASDAQ:ULTA) on Thursday forecast full-year profit below Wall Street estimates after elevated supply chain costs and increased promotions hurt margins, sending its shares down 4.5% in extended trading.
Despite the beauty retailer’s efforts to boost sales through steep discounts, inflation-weary consumers cut back spending on discretionary items such as cosmetics and hair care products.
Although pressure from retail shrink, where inventory is lost or damaged due to theft and breakage, has risen over the past few years, it persists as a challenge for retailers with several companies flagging an impact on margins.
Ulta Beauty now expects its annual operating margin to range between 14.0% and 14.3%, down from 15.0% reported in 2023.
The company forecast annual adjusted earnings per share between $26.20 and $27 per share, the mid-point of which fell below analysts’ average estimate of a profit of $27 per share, according to LSEG data.
It expects fiscal 2024 revenue to be between $11.7 billion and $11.8, largely above LSEG estimates of $11.69 billion.
The beauty retailer reported a profit of $8.08 per share for the fourth quarter ended Feb. 3, compared with expectations of $7.53.
Quarterly revenue rose about 10% year-on-year to $3.6 billion, ahead of analysts’ expectations of $3.53 billion.
Shares of the Illinois-based company hit an intra-day record high on Thursday before closing down at $565.44. The stock has surged around 15% in 2024.
