Ulta Beauty reports fall in the beauty industry, facing challenges.

• On Wednesday, Ulta Beauty's shares remained unchanged, despite the company's decision to maintain its current financial projections and disclose its long-term financial goals.
• Dave Kimbell, CEO of the beauty retailer, stated that the company is facing increased competition and a more dynamic consumer environment.
• In August, the company lowered its full-year earnings forecast after failing to meet Wall Street's expectations.

On Wednesday morning, the company announced that it anticipates facing challenges in the beauty industry due to increased competition and unfavorable market conditions.

On Wednesday, Ulta hosted its investor day near its Chicago headquarters and announced that it still expects its forecast for this fiscal year to be accurate. The specialty retailer anticipates net sales will range from $11 billion to $11.2 billion and comparable sales will range from a decline of 2% to roughly flat. Ulta also stated that earnings per share will range from $22.60 to $23.50.

Ulta has announced its financial targets for the years 2026 and beyond. The company expects to achieve net sales growth of 4% to 6% and diluted earnings per share growth in the low double digits. Additionally, Ulta anticipates mid single-digit operating profit growth and operating margins of approximately 12% of net sales.

Despite missing Wall Street's earnings expectations and cutting its full-year 2024 forecast in August, the company did not provide a specific outlook for the 2025 fiscal year.

At the investor day, CEO Dave Kimbell stated that this year has been more challenging than anticipated. He explained that the beauty industry has normalized to more modest growth levels, the consumer environment is more volatile, and there is more competition, particularly in the prestige category.

The company is boosting its sales by forming partnerships with new brands, expanding its loyalty program, and personalizing promotions to engage customers, as stated by him.

Although some obstacles may continue in the short term, we are optimistic about our capacity to execute our plans and establish a foundation for future expansion, he stated.

The investor day will feature presentations on Ulta's strategy and a Q&A session with investors.

This story is developing. Please check back for updates.