Ulta Beauty beats Q1 estimates as same-store sales rise 5.3%

Ulta Beauty reported Q1 revenue of $3.16 billion, up 11.1% year over year and beating the $3.12 billion consensus estimate by 1.5%. Earnings per share of $7.74 surpassed the $6.91 analyst forecast by 12%, compared with $6.70 a year earlier.

"Product innovation and exclusive brand launches drove strong guest engagement across our channels," Chief Executive Officer Dave Kimbell said in the earnings release. "Rare Beauty's launch at the start of the fiscal year saw robust early demand."

Same-store sales rose 5.3% in the quarter ended May 3, accelerating from 2.9% in the prior-year period. Operating margin held steady at 14.2%, while free cash flow margin improved to 6.4% from 4.9%. The company guided for full-year EPS of $28.30 at the midpoint, missing analyst estimates by 1.1%.

The results come as Ulta navigates a competitive beauty retail environment where consumers remain value-focused. Rival e.l.f. Beauty reported strong Q1 results last week, with revenue up 35.1% to $449.3 million, and confirmed it continues to gain shelf space at Ulta and Walmart. Ulta shares have declined 1.7% over the past month, trading at $509.28 against an average analyst price target of $678.88.

The earnings beat signals that Ulta's investments in personalization tools, AI-driven marketing, and digital enhancements are supporting traffic and market-share gains. Investors will watch the company's next quarterly report for continued momentum from prestige fragrance, K-Beauty, and wellness categories.

This article is for informational purposes only and does not constitute investment advice.