Ulta Beauty, Inc.. (NASDAQ:ULTA) shares are trading lower after the company presented long-term strategic business plans and reaffirmed its guidance for fiscal 2024.
Ulta Beauty aims for profitable growth across four focus areas: assortment, experience, access and loyalty, targeting more than 1,800 new stores (200 net new stores over the next three years) and a $50 million loyalty program. members by 2028.
The company continues to expect FY24 net sales of $11.0 billion to $11.2 billion (estimate: $11.16 billion), comparable sales to decline 2% to flat and a margin operational from 12.7% to 13%.
Announcing its second-quarter results, the company lowered its FY24 net sales guidance from $11.5 billion – $11.6 billion to $11.0 billion – $11.2 billion and its EPS guidance of $25.20 – $26.00 to $22.60 – $23.50.
“This plan will allow us to drive strong growth and capture greater market share in beauty and wellness,” said Dave Kimbell, CEO.
On October 15, 2024, the company’s board of directors approved a new $3.0 billion share repurchase authorization, replacing the previous authorization implemented in March 2024.
As of Aug. 3, the company had $1.6 billion remaining available under the previous $2 billion share buyback program.
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Ulta Beauty’s long-term goals for 2026 and beyond include 4% to 6% net sales growth, mid-single-digit operating profit growth, and double-digit EPS growth.
The company said its disciplined capital allocation priorities will focus on funding operations, reinvesting in the business to drive growth, keeping capital expenditures within 4% to 5% of net sales and returning excess cash to shareholders through buybacks.
Paula Oyibo, Chief Financial Officer, said: “While we expect 2024 and 2025 to be transition years as we manage category dynamics in the short term, in the long term we see additional opportunities to expand our leadership position, generating growth. profitable and compelling value for shareholders.”
According to Benzinga Pro, ULTA stock lost 6% in the past year. Investors can gain exposure to stocks through Neuberger Berman ETF Trust Neuberger Berman Next Generation Connected Consumer ETF (NYSE: NBCC) and Trenchless Fund ETF from Advisor Managed Portfolios (NYSE:RVER).
Price action: ULTA shares are trading down 3.6% at $356.20 at last check on Wednesday.
Photo: Michael Gordon/Shutterstock
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This article What’s happening with Ulta Beauty stock on Wednesday? originally appeared on Benzinga.com
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