Despite Ulta Beauty (NASDAQ:ULTA) releasing positive Q1 2023 results, the Ulta stock price has dropped over 11 per cent in value since market open on Friday.

In a press release, the company said its revenue for the quarter increased 12.3 per cent year-over-year to US$2.63 billion compared to $2.3 billion in Q1 2022.

Ulta said the revenue increase is largely attributed to increased comparable sales and strong new store performance compared to Q1 2022.

Dave Kimbell, CEO of Ulta Beauty, said that throughout the quarter store traffic remained strong while member growth also showed continued strength.

“While we expect the operating environment to continue evolving, we remain confident in the resilience of the beauty category and in our ability to drive share and profitable growth with our proven business model, a diverse, best-in-class assortment, an industry-leading loyalty program, and our world-class team,” Kimbell added.

Throughout the quarter, the company added five new store locations in Boulder, Colorado; Denton, Texas; Seattle, Washington; Surprise, Arizona; and Warrensville Heights, Ohio.

Ulta also closed one store, relocated another and remodeled two other stores.

By the end of Q1 2023, Ulta had 1,359 stores in operation.

In addition to over 1,300 stores, Ulta Beauty also has a partnership with Target. The company is the largest specialized beauty retailer in the United States.

Despite the strong quarterly performance, the Ulta stock price took an 11.86 per cent dip to $427.57 as of 12:29 p.m. EDT on Friday.

Year-to-date, shares of Ulta Beauty (NASDAQ:ULTA) are down 9.32 per cent.

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