Cosmetics brand Ulta Beauty Inc. ULTA is best known for its lipsticks, mascaras, and moisturizers, but during its recent earnings call, the company shed light on its retail media play that is taking shape within its brick-and-mortar stores.
What Happened: During its first quarter earnings call on Thursday, Ulta’s CEO, Keisha Steelman, outlined the company’s progress in its advertising arm, UB Media.
The company announced that it is leaning into new ad formats like connected TV and streaming audio while rolling out a self-service platform to offer brand partners faster access to campaign performance data.
“We've heard loud and clear,” Steelman said. “They [advertisers] need to understand when they're investing, what are they getting back for their investment.”
The bet comes as Ulta looks to capitalize on its 45 million members and high-engagement app, which now drives over 60% of e-commerce sales.
“Beauty and wellness is what we do,” Steelman says, underscoring why the platform is tightly integrated with in-store experiences and major brand moments like Beyoncé's Cowboy Carter tour and Ulta Beauty World.
Ulta also highlighted its growing partnership with commerce media firm Rokt, enabling non-endemic brands to advertise across Ulta's digital footprint. During the quarter, UB Media played a major role in supporting key events like “21 Days of Beauty,” and the company says the platform is becoming an important incremental revenue stream.
Latest Startup Investment Opportunities:
While the company stopped short of quantifying UB Media's financial contribution, CFO Paula Ojibow said the initiative aligns with the company's broader strategy to scale new, accretive businesses. “We're happy with the progress we made in the quarter,” she said.
Why It Matters: With retail media being increasingly seen as a differentiator for companies like Walmart Inc. WMT, Ulta’s beauty-specific network takes it a step further, in a category driven by aesthetics, loyalty, and emotion.
During its first quarter results on Thursday, the company reported $2.85 billion in revenue, ahead of consensus estimates at $2.79 billion. It posted a profit of $6.70 per share, significantly above analyst estimates of $5.77.
Price Action: Ulta’s shares were up 1.15% on Thursday, trading at $421.7, but the stock popped following the results, and is currently up 7.87% after hours.
According to Benzinga’s Edge Stock Rankings, the stock is favorable in the short, medium, and long term, while scoring well on momentum and growth. For deeper insights, click here.
Read More:
Photo courtesy: Gregory C Sanders / Shutterstock.com
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
