Ulta Beauty falls as rising costs weigh on annual profit guidance

Ulta Beauty

13/03/2026 11:54

** Ulta Beauty ULTA.O shares down 7.5% at $577.97 premarket after co forecast annual profit below estimates on Thursday, citing higher costs

** The cosmetics' retailer expects annual EPS between $28.05-$28.55, with the mid-point below expectations of $28.40, according to data compiled by LSEG

** CEO Kecia Steelman said, "We are optimistic about the opportunities ahead, while remaining mindful and cautious as we navigate in an environment with ongoing global uncertainty and potential economic volatility"

** Holiday quarter operating margin fell to 12.2% from 14.8% a year ago amid a pullback in discretionary spending, as well as intense competition from rivals like Walmart WMT.O and Target TGT.N

** Barclays analysts said co's prudent guidance below consensus is the "appropriate approach in an uncertain backdrop"

** Ulta however, beat sales estimates and forecast annual sales above estimates

** Stock rated "buy" on avg; median PT is $704, per data compiled by LSEG

** As of last close, Ulta shares up 3.25% YTD

 (Reporting by Kanchana Chakravarty in Bengaluru)

 ((Kanchana.Chakravarty@thomsonreuters.com;))