Core Viewpoint - Ulta Beauty, Inc. is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2024, with projected revenues of $2.48 billion, reflecting a 0.3% decrease year-over-year, and earnings per share estimated at $4.45, indicating a 12.2% decline from the previous year [1][3]. Group 1: Factors Influencing Results - Shifting consumer behavior towards value-driven spending and increased competition from new beauty distribution channels are eroding Ulta's market share [3][4]. - The U.S. beauty sales growth has slowed to just 3% in the first half of 2024, impacting Ulta significantly as consumers prioritize value over premium products amid inflation and economic uncertainties [4]. - The company's transition to a new Enterprise Resource Planning system has caused operational disruptions, and promotional efforts have not met expectations for in-store sales [3][4]. Group 2: Financial Projections - Comparable sales are projected to decline by 1.9% for the quarter under review [4]. - Soft merchandise margins and elevated selling, general and administrative (SG&A) costs are concerns, with SG&A expenses expected to increase by 5.3% for the third quarter, raising the rate to 27.9% [5]. Group 3: Positive Aspects - Ulta Beauty is focusing on strengthening its product assortment, enhancing digital experiences, and leveraging its loyalty program, which may aid in mitigating some challenges [6]. - Growth in the skincare category is noted, driven by rising consumer interest in self-care and the company's emphasis on innovation [6]. Group 4: Earnings Prediction - The current model does not predict an earnings beat for Ulta Beauty, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [7].

Wall Street analysts expect Ulta Beauty (ULTA) to post quarterly earnings of $4.45 per share in its upcoming report, which indicates a year-over-year decline of 12.2%. Revenues are expected to be $2.48 billion, down 0.3% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a ...

Key TakeawaysE.l.f. and Ulta Beauty prices fell Monday morning while the broader market rose, but then reversed their trajectory.Ulta drew more shoppers this Black Friday than it did last year, unlike other health and beauty stores, according to RetailNext and Placer.ai.Ulta is scheduled to report its latest quarterly results tomorrow afternoon. Cosmetic companies' stocks had a colorful morning Monday, with their shares moving in various directions as investors digested preliminary Black Friday data. Share ...

Ulta Beauty Inc (NASDAQ:ULTA) stock is leading the S&P 500 Index (SPX) today ahead of the cosmetics retailer's third-quarter results, which are due out after the market closes on Thursday, Dec. 5. e,l.f Beauty Inc's (NYSE:ELF) fiscal second-quarter report is not far behind, scheduled for release after the market closes on Friday, Dec. 6. Both events could have implications for sector peer Estee Lauder Companies Inc (NYSE:EL), making this an excellent time to check in with these three beauty industry giants. ...

Beating the market is my one and only objective. If I can't make a case for a stock to beat the S&P's historical return of 7-8% per year, I won't buy it. And wouldn't recommend you do either.I'm primarily a GARP investor with a strong focus on fundamentals. I cater to consumer discretionary stocks because these are within my circle of competence. I cover the occasional tech stock if I understand the business and/or am a paying customer.I love researching companies, analyzing financial statements, listening ...

Core Viewpoint - Ulta Beauty is facing a challenging financial outlook with expected declines in earnings and revenue for the upcoming earnings report on December 5, 2024, which may impact investor sentiment [2][3]. Financial Performance - The stock closed at $360.47, reflecting a -0.6% change from the previous day, underperforming the S&P 500's gain of 0.57% [1]. - Over the past month, Ulta Beauty shares have decreased by 4.59%, contrasting with the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 3.15% [1]. Earnings Estimates - Analysts project earnings of $4.45 per share for the upcoming quarter, indicating a year-over-year decline of 12.23% [2]. - For the full year, earnings are estimated at $23.07 per share, down 11.37% from the previous year, with revenue expected to be $11.16 billion, a decrease of 0.43% [3]. Analyst Sentiment - Recent changes in analyst estimates are crucial as they reflect the evolving business landscape, with positive revisions seen as a favorable sign for the company's outlook [3][4]. - The Zacks Rank system, which evaluates these estimate changes, currently rates Ulta Beauty as 3 (Hold) [5]. Valuation Metrics - Ulta Beauty has a Forward P/E ratio of 15.72, which is higher than the industry average of 13.09, indicating a premium valuation [6]. - The company also has a PEG ratio of 2.08, aligning with the industry average, suggesting that growth expectations are factored into its valuation [7]. Industry Context - The Retail - Miscellaneous industry, to which Ulta Beauty belongs, has a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries, indicating weaker performance relative to other sectors [7][8].

Core Viewpoint - Berkshire Hathaway sold over 95% of its stake in Ulta Beauty shortly after acquiring it, raising questions about the company's future prospects and investment potential [1][2]. Company Performance - Ulta Beauty has faced challenges with slowing sales growth due to weakened consumer spending and increased competition, leading to a decline in comparable store sales of 1.2% and a modest overall revenue increase of 1% to $2.55 billion in the second quarter [5][6]. - The company's gross margin decreased from 39.3% to 38.3%, while selling, general, and administrative expenses rose from $600.7 million to $644.8 million, resulting in a drop in operating margin from 15.5% to 12.9% and a decline in earnings per share (EPS) from $6.02 to $5.30 [6]. Industry Context - The beauty retail industry is expected to return to low to mid-single-digit growth rates, similar to trends observed during the 2010s, following a pandemic-related boom [5]. - Ulta's stock currently trades at a price-to-earnings ratio of less than 15, which is considered attractive given its historical performance of over 1,100% return since its IPO in 2007 [4]. Strategic Outlook - Ulta has set long-term targets to grow from over 1,400 stores to more than 1,800 and aims to increase its loyalty membership from 43.9 million to 50 million by 2028 [7][8]. - The company has outlined financial targets for 2026 and beyond, including 4% to 6% revenue growth and low-double-digit EPS growth, focusing on enhancing product assortment, customer experience, and loyalty engagement [8]. Competitive Advantages - Despite recent struggles, Ulta maintains competitive advantages such as large retail stores, in-store salons, a robust loyalty program with over 40 million members, and 800 locations within Target stores [9]. - The current valuation is seen as attractive, especially if Ulta can achieve its intended double-digit EPS growth [10].

Ulta Beauty (NASDAQ: ULTA ) stock has fallen 22% year-to-date while the market has soared. Investors are likely disappointed by the lack of growth recently and the fact that 2024 and 2025 will be transitional years for the company.I objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time), as they tend to paint a more realistic pi ...

BofA Securities analyst Lorraine Hutchinson reiterated the Neutral rating on Ulta Beauty, Inc. ULTA with a price objective of $380. The analyst reduced the FY25 EPS estimate by 8% to $22.41, reflecting a 3% decline due to more store openings offset by lower margins. The company projects annual sales growth of 4-6%, comparable sales growth of 3-4%, and low-double-digit EPS growth. Per Hutchinson, FY25 may be a transitional year, with results falling short of long-term targets as the company navigates softer ...

Ulta Beauty, Inc. (ULTA) , a prominent player in the beauty space is trading at a discount compared to the Zacks Retail - Miscellaneous industry. With a forward 12-month Price/Earnings (P/E) ratio of 15.3X, ULTA is trading below the industry average of 16.8X and the broader Retail and Wholesale sector's 24X. It also trades lower than the S&P 500's multiple of 22.1X. However, investors should carefully evaluate whether this discounted valuation signifies a genuine buying opportunity or if it could be a poten ...