Ulta Beauty CEO Kecia Steelman Discusses Company's Performance and Competitive Opportunities at Goldman Sachs Conference

Ulta Beauty's CEO, Kecia Steelman, discussed the company's performance and challenges since taking the role in January 2025. Steelman highlighted reaccelerating the business and leveraging competitive opportunities as key priorities. Interim CFO Chris Lialios also participated in the conference.

Ulta Beauty (ULTA) reported a robust second-quarter performance, surpassing Wall Street's expectations on both revenue and earnings. The company's revenue reached $2.79 billion, a 9.3% year-on-year increase and a 4.2% beat over analyst estimates [1]. The earnings per share (EPS) GAAP was $5.78, a 14.7% beat, while the adjusted EBITDA was $416 million, a 14.9% beat [1].

CEO Kecia Steelman, who took the helm in January 2025, highlighted the company's reaccelerating business and leveraging competitive opportunities as key priorities. She attributed the strong performance to robust growth in core categories, effective promotional strategies, and the ongoing traction of the Ulta Beauty Unleashed strategy. The company's same-store sales rose by 6.7% year-on-year, driven by balanced contributions from newness and core assortment growth [1].

Interim CFO Chris Lialios also participated in the conference, noting that while the company is cautious about potential consumer spending reductions, it remains optimistic about its growth prospects. The company raised its full-year revenue guidance to $12.05 billion, a 3.9% increase from the previous estimate, and its EPS (GAAP) guidance to $24.08 [1].

Ulta's stock price rose 9.1% in after-hours trading following the earnings release, though gains later narrowed to 3.1%. Year-to-date, Ulta's stock has increased by 22%, outperforming the S&P 500's 11% rise [2]. The company's market capitalization stands at $23.81 billion.

Looking ahead, Ulta will focus on the ramp-up and performance of its new online marketplace and exclusive brand launches, the integration and growth of Space NK in the U.K., the opening of new stores in Mexico and the Middle East, and the sustainability of margin improvements amid cost pressures and evolving promotional dynamics [1].

References:
[1] https://www.tradingview.com/news/stockstory:d3bad578e094b:0-5-must-read-analyst-questions-from-ulta-s-q2-earnings-call/
[2] https://www.gurufocus.com/news/3086511/ulta-beauty-ulta-surpasses-expectations-and-raises-fullyear-forecast