How Ulta Magnificence’s (ULTA) new technique is fueling development

Shares of Ulta Magnificence, Inc. (NASDAQ: ULTA) had been up over 1% on Monday. The inventory has gained 31% over the previous three months. The sweetness retailer began fiscal 12 months 2025 on a robust word by delivering stable outcomes for the primary quarter and elevating its outlook for the 12 months. This efficiency was pushed, largely, by the corporate’s new technique that has helped it make progress in an unsure macro atmosphere.

Gross sales and earnings development

Ulta Magnificence noticed each gross sales and earnings improve within the first quarter of 2025. Web gross sales had been up 4.5% year-over-year to $2.8 billion, pushed by comparable gross sales development and contributions from new shops. Comparable gross sales grew 2.9%, helped by will increase in common ticket and transactions. Earnings per share rose 4% to $6.70 in comparison with final 12 months.  

Ulta Magnificence Unleashed

As talked about on the earnings name, Ulta anticipates the sweetness class to stay resilient on the again of wholesome engagement from shoppers who’re prioritizing magnificence and wellness alongside worth. Within the first quarter, the corporate noticed double-digit development within the fragrances class, together with high-single-digit development within the skincare and wellness class, pushed by development in physique care, solar care and wellness.

As a part of its technique, Ulta has been bettering its advertising and marketing efforts to construct consciousness, deepen engagement, and entice and retain loyalty members. The corporate has seen an enchancment in model visibility and an increase in site visitors because of its related campaigns. Its loyalty member base elevated 3% YoY to succeed in 45 million and it has been seeing larger engagement.

As a part of its brand-building efforts, Ulta launched 19 new manufacturers, a lot of which have been performing effectively and driving engagement and development. The corporate has extra model launches and activations deliberate for the second quarter and the rest of the 12 months. The sweetness retailer can be engaged on constructing its digital capabilities by increasing automation and including new options to ship a extra customized buying expertise for purchasers. These efforts are serving to in driving engagement and development.

Steering hike

Looking forward to the rest of fiscal 12 months 2025, Ulta anticipates a dynamic working atmosphere and uncertainty concerning shopper demand. The corporate raised its outlook for the 12 months based mostly on its first quarter efficiency and now expects internet gross sales to vary between $11.5-11.7 billion and comparable gross sales development to be 0-1.5%. EPS is now anticipated to be $22.65-23.20.