US Stock Market Move | 2026 fiscal year performance guidance falls short of expectations, Ulta Beauty (ULTA.US) plunges more than 10% in early trading.

On Friday, Ulta Beauty (ULTA.US) saw a significant drop of over 10% in early trading, reaching $561.32. On the news front, the company continued to show strong same-store sales growth, but disappointed investors with lower-than-expected fourth-quarter profits and weak performance guidance for fiscal year 2026. In the fourth quarter, revenue performance remained strong due to the success of its Beauty Unleashed strategy, growth in same-store sales, and the acquisition of Space NK. Net sales in the fourth quarter increased by 11.8% to a higher-than-expected $3.9 billion, with an increase in same-store sales of 5.8% - higher than the 1.5% in the fourth quarter of 2024 and the expected 4.25% increase. However, earnings per share were $8.01, lower than the $8.46 from the same period last year and 2 cents below Wall Street's expectations. The company's performance guidance for the year was lower than Wall Street's expectations. According to the company's statement, same-store sales (measuring revenue from online and physical stores open for at least a year) are expected to grow by 2.5% to 3.5% this year, with the midpoint below analysts' average expectation of 3.5%. The midpoint for earnings per share is slightly lower than the average expectation - expected to be between $28.05 and $28.55, with a midpoint of $28.30, also below the market's general expectation of $28.58.