FINWIRES · TerminalLIVE
FINWIRES

Ulta Beauty Raises Fiscal 2026 Earnings Outlook Following First-Quarter Beat

By
Ulta Beauty Raises Fiscal 2026 Earnings Outlook Following First-Quarter Beat

Ulta Beauty (ULTA) shares were up early Wednesday as the beauty retailer raised its full-year earnings outlook and reported fiscal first-quarter results above market estimates.

Earnings are now expected to be in a range of $28.36 to $28.80 per share for fiscal 2026, up from previous projections of $28.05 to $28.55, the company said late Tuesday. The current consensus on FactSet is for EPS of $28.74. The stock rose 1.2% in the most recent premarket activity.

Ulta Beauty continues to anticipate sales growth of 6% to 7% and comparable sales to rise by 2.5% to 3.5% for the ongoing fiscal year. The Street is looking for sales of $13.25 billion and same-store sales to increase by 3.4%.

"We believe it is prudent to take a measured approach to our guidance, given the uncertain macro landscape," Christopher DelOrefice said during an earnings call, according to a FactSet transcript. "We expect net sales growth will be stronger in the first half, reflecting our strong (first-quarter) performance."

For the three months through May 2, the retailer's EPS climbed to $7.74 from $6.70 the year before, topping the average analyst estimate of $6.89. Sales advanced 11% to $3.16 billion, ahead of the Street's view for $3.12 billion.

"The beauty and wellness categories remain healthy, and engagement is strong," Chief Executive Kecia Steelman said on the call. "At the same time, consumers continue to face macroeconomic uncertainty, and inflationary measures and pressures from rising fuel prices, making value increasingly important as a consideration."

Comparable sales moved 5.3% higher, driven by gains in transactions and average ticket. Analysts had modeled for 4.7% growth.

"Looking at the cadence of sales through the quarter, the period played out largely as we expected," DelOrefice told analysts. In February, the company saw low-double-digit comparable sales growth, while March and April were in the low-single-digit range, the CFO added.

"From a channel perspective, both store and digital channels contributed to comp growth, with e-commerce delivering mid-teens sales growth and comp stores delivering sales growth in the low-single-digit range," according to DelOrefice.

Related Articles

PMI: Non-oil Private Sector Growth in Saudi Arabia, UAE Picks Up Against Tense Geopolitical Backdrop
US Markets

PMI: Non-oil Private Sector Growth in Saudi Arabia, UAE Picks Up Against Tense Geopolitical Backdrop

Expansion in the non-oil private sectors of Saudi Arabia and the United Arab Emirates improved in May but remained well below their respective long-run averages as regional geopolitical tensions continued to dampen new business growth, surveys conducted by S&P Global showed Wednesday.The seasonally adjusted Riyad Bank Saudi Arabia PMI climbed to 52.8 in May from 51.5 in April, against the historical average of 56.8. The "notable" improvement in business activity was the quickest in three months as domestic demand and stabilizing supply chains led to a sharp rise in production.Employment also swung back to growth, while purchasing activity trended higher for the first time since February. Still, shipping disruptions, higher freight and fuel costs, and regional tensions weighed down external demand, leading to a steep drop in new export orders for a third straight month."Overall, the latest PMI reading supports the expectation that Saudi Arabia's non-oil economy will continue its upward trend during the remainder of 2026," Riyad Bank Chief Economist Naif Al-Ghaith said. "Improving domestic demand, stabilizing supply chains, contained inflation, strong government-led investment activity, and healthy trade performance collectively provide a strong foundation for continued private sector expansion."In the Emirates, the improvement in non-oil private sector conditions was only moderate in May. The seasonally adjusted S&P Global UAE PMI edged up to 52.6 from 52.1 in April, staying under its long-run average of 54.3.Survey respondents reported heightened supply-chain disruptions, because of which new business growth remained subdued, holding close to April's 62-month low. A decline in exports also impacted order books.Still, output growth reached a three-month high, with 21% of businesses seeing increased activity, thanks to stronger market demand, project expansion and government-backed initiatives."Positively, the longer-term outlook remained strong in May, suggesting that [Emirati] businesses still view these current challenges as temporary and expect growth to bounce back quickly," S&P Global Principal Economist David Owen concluded.

$^DFMGI$^FADGI$^TASI
US Proposes New Tariffs on EU Over Forced Labor as Brussels Advances Trade Deal
US Markets

US Proposes New Tariffs on EU Over Forced Labor as Brussels Advances Trade Deal

The US on Tuesday proposed additional tariffs on 60 economies, including the European Union, following an investigation into the enforcement of forced labor import prohibitions.As part of a Section 301 investigation, the Office of the US Trade Representative threatened an extra 10% duty on the EU, stemming from findings that the bloc failed to "effectively" block forced labor imports. The proposed tariffs were announced on the same day that the European Parliament's trade committee granted preliminary approval for a trade agreement reached with the US in the third quarter of 2025.The targeted 27-nation bloc joins countries like Canada, Mexico and Pakistan, which will face the 10% tariff rate because they established partial enforcement regimes or have committed to doing so through reciprocal trade agreements. Meanwhile, other economies, including Switzerland, Saudi Arabia, South Africa and the United Arab Emirates, will be hit by a steeper 12.5% tariff rate on failure "to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.""The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable," said US Trade Representative Jamieson Greer. "This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. We will no longer tolerate this disparity."The United States Trade Representative invited public feedback on the proposal, setting a deadline of July 6 for written comments and scheduling public hearings for July 7.Danske Bank noted that the move clears the path for permanent tariffs to take over when the 10% Section 122 duties expire on July 24. "While the shift in legal basis could still face court challenges, overall tariff levels for now should remain little changed when the authority 'switches' from Section 122 to Section 301," the bank wrote.

$^DFMGI$^FADGI$^FTSE$^SSMI$^SXXP$^TASI
Inditex Shares Rise as Fiscal First-quarter Earnings Match Consensus; Sales Momentum Improves
US Markets

Inditex Shares Rise as Fiscal First-quarter Earnings Match Consensus; Sales Momentum Improves

Shares of Industria de Diseño Textil (ITX.MC), d/b/a Inditex, rose over 5% in early Wednesday morning trading in Madrid after the Zara owner reported fiscal first-quarter results in line with market expectations and solid sales growth at the start of the next three-month period.Attributable net profit for the three months ended April 30 was 1.38 billion euros, up from 1.31 billion euros a year ago, while EPS moved to 0.441 euro from 0.419 euro. The clothing company recorded net sales of 8.75 billion euros, compared with 8.27 billion euros last year.Analysts polled by FactSet were expecting 1.38 billion euros in net income, 8.72 billion euros in sales and 0.44 euro in EPS.Inditex, which operates Zara, Pull&Bear and Massimo Dutti, among others, also saw sales picking up at the start of the second fiscal quarter. Revenue for store and online sales, in constant currency, rose 11.5% year over year between May 1 and June 1."Inditex has delivered a good start to the year, with 1Q26 sales up +5.8% yoy and +8.8% cFX to to [EUR]8,750m, largely in line with expectations (Cons [EUR]8,750m)," Deutsche Bank Research said in a quick-take note following the earnings release. "Gross margin was a beat, up +67 bps to 61.2% (Cons 60.7%, DBe 60.5%) with opex slightly higher at +31.8% of sales (+6.4% yoy). EBIT of [EUR]1,756 million was a c.1% beat vs consensus ([EUR]1,740m), with EPS of [EUR]0.44 in line with consensus."The clothing company plans to invest 2.3 billion euros during 2026 to strengthen its store network, digital platforms and logistics infrastructure. "Optimization of stores is ongoing, and we expect this to drive further gains in store productivity," the company said.For fiscal 2026, Inditex expects a 1% negative currency impact on sales at current exchange rates and a stable gross margin, plus or minus 50 basis points.

$ITX.MC