Ulta Beauty shares slumped on Wednesday morning, as the corporate mentioned it sees “headwinds” and harder competitors within the magnificence business.

Because it hosted its investor day close to its Chicago headquarters on Wednesday, the specialty retailer caught by its forecast for this fiscal yr. Ulta mentioned it anticipates web gross sales will vary from $11 billion to $11.2 billion and comparable gross sales will vary from a decline of two% to roughly flat. It mentioned earnings per share will vary from $22.60 to $23.50.

For 2026 and past, Ulta mentioned its monetary targets shall be 4% to six% web gross sales development and low double-digit diluted earnings per share development. It mentioned it expects mid single-digit working revenue development and working margins round 12% of web gross sales.

But it didn’t present particular outlook for the 2025 fiscal yr. The updates come after the corporate missed Wall Road’s earnings expectations and cut its full-year 2024 forecast in August.

In his opening remarks on the investor day, CEO Dave Kimbell mentioned this yr “has been tougher than deliberate.” Kimbell mentioned the wonder class has normalized to extra modest historic development ranges, the buyer backdrop is extra unstable and extra competitors has emerged, particularly within the status class.

He mentioned the corporate is taking motion to spice up its gross sales by putting partnerships with new manufacturers, increasing its loyalty program and personalizing promotions to interact clients.

Plus, he mentioned demographic traits will drive development for Ulta. Extra males are shopping for magnificence merchandise, together with fragrances and self-care objects.

Youthful generations, Gen Z and Gen Alpha, are more interested in spending on beauty than prior generations, significantly on skincare or as a type of self-expression, Kimbell mentioned. And he added Hispanic clients, who are usually extra engaged within the class, have gotten a bigger portion of the U.S. inhabitants.

“Whereas we anticipate that a few of these headwinds will persist within the close to time period, we’re assured in our potential to on our plans and set ourselves up for long run development,” he mentioned.

In her presentation on Wednesday, Chief Merchandising Officer Monica Arnaudo mentioned Ulta will step up its emphasis on unique merchandise, lead on magnificence traits and carry a mixture of trusted, well-loved manufacturers in addition to promising up-and-comers.

“We’re consultants in figuring out [and] bringing key traits to the market with our model companions,” she mentioned. “This shall be extra essential than ever because the market change into more and more aggressive.”

In make-up, for instance, extra buyers search multiuse merchandise and need to get provides for glamorous seems. In skincare, clients need to know extra about objects’ components and need dermatologist-recommended manufacturers as they develop extra well being acutely aware, she mentioned. And in hair care, buyers are pondering past shampoo and conditioner and including on merchandise like scalp therapies or objects designed for curly and textured hair.

Already, Arnaudo mentioned, the corporate has greater than 40 unique manufacturers and greater than 65 manufacturers with some unique merchandise.

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