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Reuters Published
August 30, 2025
Ulta Beauty cut its annual sales and profit forecast on Thursday, hurt by slowing demand for higher-priced cosmetics and fragrances at its stores.
The company's shares have already fallen about 22% this year, were down 7% in extended trading.
Once pandemic related restrictions lifted in the United States, people initially splurged on affordable luxury products, particularly in the beauty category but with costs of living still remaining high customers are now even cutting back on cosmetics and skincare as well.
The company forecast annual earnings per share between $22.60 and $23.50, compared with its earlier expectation of $25.20 to $26.00.
It sees annual net sales between $11 billion and $11.20 billion, versus prior expectations of $11.5 billion to $11.6 billion.