Ulta Beauty shares slumped on Wednesday morning, as the company said it sees “headwinds” and tougher competition in the beauty industry.

As it hosted its investor day near its Chicago headquarters on Wednesday, the specialty retailer stuck by its forecast for this fiscal year. Ulta said it anticipates net sales will range from $11 billion to $11.2 billion and comparable sales will range from a decline of 2% to roughly flat. It said earnings per share will range from $22.60 to $23.50.

For 2026 and beyond, Ulta said its financial targets will be 4% to 6% net sales growth and low double-digit diluted earnings per share growth. It said it expects mid single-digit operating profit growth and operating margins around 12% of net sales.

Yet it did not provide specific outlook for the 2025 fiscal year. The updates come after the company missed Wall Street’s earnings expectations and cut its full-year 2024 forecast in August.

In his opening remarks at the investor day, CEO Dave Kimbell said this year “has been more challenging than planned.” Kimbell said the beauty category has normalized to more modest historic growth levels, the consumer backdrop is more volatile and more competition has emerged, especially in the prestige category.

He said the company is taking action to boost its sales by striking partnerships with new brands, expanding its loyalty program and personalizing promotions to engage customers.

“While we anticipate that some of these headwinds will persist in the near term, we are confident in our ability to on our plans and set ourselves up for long term growth,” he said.

The investor day will include presentations on Ulta’s strategy and a question-and-answer session with investors.

This story is developing. Please check back for updates.