Ulta Beauty raises profit forecast on strong demand
Ulta Beauty increased its annual profit outlook as affluent shoppers continue to spend on high-margin fragrance and skincare brands. The retailer expects full-year earnings per share between $28.36 and $28.80 amid resilient consumer demand.
Ulta Beauty raised its annual profit forecast to a range of $28.36 to $28.80 per share on Tuesday evening. The retailer previously projected earnings between $28.05 and $28.55 per share, representing a $0.31 increase at the low end. Demand for high-margin fragrances among affluent shoppers signals strength in the United States consumer discretionary sector.
Shares of the cosmetics retailer rose 5% during late evening trading following the announcement. Ulta Beauty attributes the outlook to lower inventory-related losses and strong sales of premium skincare products. These factors helped offset rising costs tied to store expansion and marketing efforts.
