ULTA) is the Best in the Biz

Looking back on beauty and cosmetics retailer stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Ulta (NASDAQ:ULTA) and its peers.

Beauty and cosmetics retailers understand that beauty is in the eye of the beholder, but a little lipstick, nail polish, and glowing skin also help the cause. These stores—which mostly cater to consumers but can also garner the attention of salon pros—aim to be a one-stop personal care and beauty products shop with many brands across many categories. E-commerce is changing how consumers buy cosmetics, so these retailers are constantly evolving to meet the customer where and how they want to shop.

The 4 beauty and cosmetics retailer stocks we track reported a mixed Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Luckily, beauty and cosmetics retailer stocks have performed well with share prices up 22.5% on average since the latest earnings results.

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Ulta reported revenues of $2.85 billion, up 4.5% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

Ulta scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 21.9% since reporting and currently trades at $514.50.

We think Ulta is a good business, but is it a buy today? Read our full report here, it’s free.

Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.

Warby Parker reported revenues of $223.8 million, up 11.9% year on year, falling short of analysts’ expectations by 0.8%. However, the business still had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Warby Parker delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 42.8% since reporting. It currently trades at $23.05.

Is now the time to buy Warby Parker? Access our full analysis of the earnings results here, it’s free.

Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.

Bath and Body Works reported revenues of $1.42 billion, up 2.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations.

The stock is flat since the results and currently trades at $30.73.

Read our full analysis of Bath and Body Works’s results here.

Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE:SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.

Sally Beauty reported revenues of $883.1 million, down 2.8% year on year. This print lagged analysts’ expectations by 2%. All in all, it was a mixed quarter for the company.

Sally Beauty had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 24.3% since reporting and currently trades at $10.16.

Read our full, actionable report on Sally Beauty here, it’s free.

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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