Ulta Beauty Q4 Earnings Preview: Comparable Sales, Gross Margins On Watch

Erica Kollmann

March 13, 2025

Benzinga

Ulta Beauty Inc. (NASDAQ:ULTA) is set to release its fourth-quarter financial results after Thursday's closing bell. Here's a look at what to expect in the report.

What To Watch: Ulta is facing changing consumer behaviors as shoppers become more value-driven and shift away from discretionary spending. The shifting consumer could present challenges for the company which cautioned to a potential decrease in gross margins during its last earnings call.

Ulta reported comparable sales increased 0.6% in the third quarter, driven by a 0.5% increase in transactions and a 0.1% increase in average ticket. Investors will be looking for continued growth in comparable sales which could prove difficult as the beauty and self-care retail sector experienced a significant deceleration in growth during 2024.

According to data from Placer.ai, visits to beauty and self-care retail chains increased by only 1.5% in 2024, compared to 18% growth in 2023. The dramatic slowdown in 2024 represents a stark contrast to the industry’s performance in the immediate post-pandemic years and signals a considerable cooling off period for a sector that had been flourishing.

According to estimates from Benzinga Pro, analysts expect the company to report quarterly earnings of $7.12 per share and revenue of $3.64 billion. Ulta beat analysts' expectations on the top and bottom lines in the previous quarter.

ULTA Price Action: Ulta Beauty shares were down 0.4% at $327.89 in early Thursday trading, according to data from Benzinga Pro.

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