Ulta Beauty Q1 Sales Up 11.1% to $3.16B, Raises EPS Forecast
ULTA•Ulta Beauty's Q1 net sales rose 11.1% to $3.16 billion with diluted EPS up 15.5% to $7.74, topping expectations. The retailer raised its full-year EPS forecast to $28.36-28.80 and saw gross margin climb to 40.1% on lower shrink and better merchandise margins.
1. Strong Q1 Sales and Earnings Beat
Ulta Beauty posted net sales of $3.16 billion, up 11.1% year-over-year, driven by a 3.7% jump in average ticket and a 1.6% rise in transaction volume, leading to 5.3% comparable-store sales growth and diluted EPS of $7.74, a 15.5% increase.
2. Margin Expansion
Gross margin rate expanded from 39.1% to 40.1% as reduced inventory shrink and improved merchandise margins boosted profitability during the quarter.
3. Strategic Growth Initiatives
Revenue gains were supported by the Space NK acquisition, new store openings, a TikTok Shop debut featuring exclusive products, and the addition of over 20 brands including Rare Beauty, with fragrances rising to 12% of total sales.
4. Outlook and Capital Returns
Ulta Beauty lifted its full-year EPS guidance to $28.36-28.80 while maintaining 6%-7% net sales and 2.5%-3.5% comparable-sales targets, repurchased $555 million of shares, and ended the quarter with 1,521 domestic and 87 international stores.
