Ulta Beauty Surges to 45th in Trading Volume with $21.85 Billion in Shares Exchanged

On May 30, 2025, Ulta Beauty (ULTA) saw a significant surge in trading volume, with a total of $21.85 billion in shares exchanged, marking a 162.47% increase from the previous day. This surge placed Ulta Beauty at the 45th position in terms of trading volume for the day. The stock price of Ulta Beauty rose by 11.78%, marking the second consecutive day of gains, with a total increase of 13.06% over the past two days.

Ulta Beauty reported strong financial results for the first quarter of fiscal 2025, with net sales increasing by 4.5% to $2.8 billion. This growth was driven by a 2.9% increase in comparable sales, which includes sales from stores open for at least 14 months and e-commerce transactions. The rise in comparable sales was attributed to a 2.3% increase in the average ticket and a 0.6% increase in transaction volume.

Under the leadership of new CEO Kecia Steelman, Ulta Beauty demonstrated a robust performance in the first quarter of 2025. The company achieved record loyalty growth and strong gains in fragrance and skincare categories, contributing to the overall positive results. The company's earnings per share (EPS) for the quarter reached $6.70, surpassing consensus estimates by 16.5%.

Ulta Beauty's gross profit for the quarter totaled $1,114.2 million, up 4.2% from the previous year. However, as a percentage of net sales, gross profit contracted slightly to 39.1% from 39.2%. This decrease was due to deleverage in store and supply-chain fixed costs, along with lower other revenues, partially offset by reduced inventory shrinkage. Operating income for the quarter was $401.8 million, with an operating margin of 14.1%, down from 14.7% in the year-ago period.

Ulta Beauty ended the quarter with cash and cash equivalents of $454.6 million and net merchandise inventories of $2.1 billion. The company repurchased 986,733 shares for $358.7 million in the quarter, with $2.3 billion remaining under its $3 billion share buyback program. Management expects to buy back shares worth nearly $900 million in fiscal 2025, with capital expenditures projected to be in the range of $425-$500 million. The company opened six new stores, remodeled four, and relocated two during the quarter, ending with a total of 1,451 stores.