Ulta Beauty shares fall as company sees ‘headwinds’ in beauty industry

Ulta Beauty Shares fell Wednesday morning as the company said it saw “headwinds” and tougher competition in the beauty industry.

As it held its investor day near its Chicago headquarters on Wednesday, the specialty retailer stuck to its guidance for this fiscal year. Ulta said it expects net sales to be between $11 billion and $11.2 billion and that comparable sales will range from a 2% decline to almost flat. Earnings per share will be between $22.60 and $23.50.

For 2026 and beyond, Ulta said its financial goals will be 4% to 6% net sales growth and low double-digit diluted earnings per share growth. It said it expects mid-single-digit growth in operating profit and operating margins of around 12% of net sales.

Still, it did not provide a specific outlook for fiscal 2025. These updates come after the company missed Wall Street’s earnings expectations and cut its forecast for the entire year 2024 in August.

In his opening remarks at the investor day, CEO Dave Kimbell said this year “has been more difficult than expected.” Kimbell said the beauty category has normalized to more modest historical growth levels, the consumer environment is more volatile and increased competition has emerged, particularly in the prestige category.

He said the company was taking steps to increase sales by partnering with new brands, expanding its loyalty program and personalizing promotions to engage customers.

“While we expect some of these headwinds to persist in the near term, we are confident in our ability to execute on our plans and prepare for long-term growth,” he said.

The investor day will include presentations on Ulta’s strategy and an investor Q&A session.

This story is developing. Please check again for updates.