Ulta Beauty CEO: we can withstand the inflationary pressures ahead

Ulta Beauty Inc (NASDAQ: UTLA) is well-positioned to withstand inflationary pressures in the coming months, said CEO Dave Kimbell this morning on CNBC’s “Squawk Box”.

Beauty is resilient to inflation

Beauty as a category tends to adapt well and hold its own in times of inflation. CEO Kimbell, therefore, doesn’t think of Ulta Beauty products as purely discretionary. He said:

Last month, Ulta Beauty cited strong demand as it reported market-beating results for its fiscal Q1. The Bolingbrook-headquartered company also raised its guidance for the full year. Wall Street, on average, sees an 8.0% upside in the stock.

Ulta Beauty can weather a trade down

CEO Kimbell is also confident that Ulta Beauty can weather inflation because it has products that tap on different price points and cater to all consumers, regardless of their purchasing power.

The Nasdaq-listed company partnered with Target in 2021 to introduce more customers to Ulta Beauty. The stock has recovered roughly 25% since Q1 report and is now in the green for the year.