The ULTA Q2 2024 earnings are in: 'Our second quarter performance did not meet our expectations,' said chief executive officer Dave Kimbell.
has lowered its full year outlook after missing Wall Street forecasts on the top and bottom lines in the second quarter.retailer, in which Warren Buffett’s Berkshire Hathaway recently bought a new stake, is forecasting net sales for the fiscal year will land between $11 billion to $11.2 billion, down from its previous forecast of $11.5 billion to $11.6 billion. The outlook for annual dilutedUlta’s stock dropped around 7 percent in after market trading following the news, having closed up 0.
Kimbell also added that in addition to these external factors, Ulta experienced unanticipated operational disruption during the quarter resulting from the completion of enterprise resource planning transformation, including updating key store systems. “Today, there are significantly more places to buy beauty, especially prestige beauty, with more than 1,000 new points of distribution opened in the last three years. As a result, our market share continues to be challenged, particularly within prestige beauty,” he said.
“What is unique about the current environment is the scale and pace of change,” Kimbell continued. “More than 80 percent of our stores have been impacted by one or more competitive opening in recent years, with more than half impacted by multiple competitive openings. This significant portion of our store fleet is experiencing a prolonged sales impact.”
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