Ulta Beauty Lowers Guidance Due to U.S. Slowdown

Things are not looking up in the U.S. beauty market, as such, Ulta Beauty has revised its guidance downward. “Looking forward, we have updated our fiscal 2019 outlook to reflect the headwinds we are currently seeing in the U.S. cosmetics market,” Ulta Beauty chief executive officer Mary Dillon said in a statement. “We remain confident that our guest-centric, differentiated business model will drive continued market share gains and strong returns for our shareholders over the long term.” The beauty retailer is now expecting a sales increase of between 9 percent and 12 percent for fiscal 2019, compared to the low double-digit growth it forecast previously. Ulta also decreased expected comparable sales growth from 6 percent to 7 percent, to 4 percent to 6 percent. Even with U.S. headwinds, which are being felt across the beauty industry, Ulta’s net sales increased 12 percent for the second quarter of fiscal 2019, to $1.67 billion. Net income was up 8.7 percent to $161.3 million, and diluted earnings per share increased 12.2 percent to $2.76.

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