Ulta Magnificence topped market expectations for first-quarter revenue on Thursday, helped by regular demand for skincare and make-up in addition to easing enter prices.

Shares of the corporate, which have fallen 22 % thus far this yr, have been up 8.4 % in prolonged buying and selling.

Demand for magnificence and private care merchandise has stayed resilient in the USA regardless of strained discretionary budgets.

Excluding gadgets, the sweetness retailer earned $6.47 per share, beating expectations of $6.24 apiece.

With shoppers searching for cheaper choices for make-up and skincare, Ulta Magnificence has supplied focused promotions to retain clients, whereas additionally launching its luxurious line with manufacturers similar to Chanel and Dior final yr to assist increase demand and help margins.

Decrease enter prices and normalising costs for its merchandise has additionally helped help margin progress on the firm.

The corporate’s quarterly web gross sales rose 3.5 % to $2.73 billion. Analysts anticipated $2.72 billion, as per LSEG knowledge.

In line with knowledge from Placer.ai, Ulta’s foot visitors positive aspects surpassed these within the general magnificence and wellness phase within the February via April interval, signalling power in demand for inexpensive luxuries in a uneven macro atmosphere.

The corporate lowered its annual revenue and income forecast. Nonetheless-high rental and rates of interest have raised issues that discretionary spending might be pressured for the yr.

It now sees annual adjusted earnings per share between $25.20 and $26.00, in contrast with its earlier expectation of $26.20 to $27.00.

Ulta forecast annual web gross sales between $11.5 billion to $11.6 billion, versus prior expectations of $11.7 to $11.8 billion.

As a proportion of web gross sales, quarterly gross revenue decreased to 39.2 %, in contrast with 40 % final yr.

By Juveria Tabassum and Sneha S Okay; Modifying by Alan Barona

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