ULTA

AI Research

Weak guidance → Stock crashes 17% as operating margin fell from 14.8% to 12.2%

Ulta Beauty stock at $529.54 crashed 17% over five days after guiding to 2.5-3.5% same-store sales growth (down from 5.4% in 2025) despite sales up nearly 12%, as operating margin fell from 14.8% to 12.2%. CEO Kecia Steelman cited ongoing global uncertainty and Middle East conflict impacting lower/middle-income consumers prioritizing essentials. Despite the decline, analysts at Raymond James and Oppenheimer called the pullback a buying opportunity citing strong loyalty program and market leadership.

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