Ulta Beauty forecasts weak profits for 2025

Ulta Beauty has issued a weak profit and revenue forecast for 2025, expecting comparable sales to be flat or grow by only 1%. This is below analysts' expectations of a 1.2% increase. Full-year earnings are projected between $22.50 and $22.90, lower than the anticipated $23.47. Despite the disappointing guidance, Ulta's shares rose 6% after reporting better-than-expected holiday-quarter results. The company reported earnings of $8.46 per share and revenue of $3.49 billion, both surpassing analyst forecasts. However, sales declined by about 2% compared to the previous year. Ulta's new CEO, Kecia Steelman, acknowledged the need for further improvements. The company faces increased competition from rivals like Sephora and mass retailers, which have expanded their beauty product offerings.