Ulta Beauty shares saw an 11% decline over the past week following several key corporate updates on March 13, 2025. Despite reporting better-than-expected fourth-quarter earnings of $8.46 per share on net sales of $3.49 billion, matching and slightly exceeding analyst estimates, the company's forecast for fiscal year 2025 earnings per share of $22.50 to $22.90 and net sales between $11.5 billion to $11.6 billion may have undershot market expectations. Additionally, Ulta's share repurchase program, which saw the buyback of 620,053 shares, may not have been enough to bolster investor confidence amid broader market volatility. This decline occurred despite a broader market uptick, with the tech-focused Nasdaq up 2.5% on Friday. While the S&P 500 and Nasdaq faced a correction earlier in the week, the tech sector's late-week rally, led by companies like Nvidia and Palantir, did not seem to alleviate pressure on Ulta's stock.

Review our historical performance report to gain insights into Ulta Beauty's track record.

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Over the past five years, Ulta Beauty's total shareholder return, including share price appreciation and dividends, reached 113.94%. This robust performance reflects the company's ability to grow its earnings significantly by 23.1% annually during this period, despite recent challenges. Ulta has consistently been viewed as good value, trading approximately 30.9% below estimated fair value, indicating investor confidence in its long-term growth potential. Additionally, the company's solid return on equity of 51.6% highlights its operational efficiency.

Key strategic expansions have also bolstered Ulta's standing in the market. The introduction of Milk Makeup products in over 600 stores and online in early 2025 and the Rodan + Fields partnership have broadened its product offerings. However, in the past year, Ulta underperformed the US market's 6.6% return, partly due to earnings growth challenges, spotlighting the competitive pressures and market dynamics the company faces.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:ULTA.

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