Ulta Beauty(US:ULTA) Benzingaยท2025-03-14 17:04Core Viewpoint - Ulta Beauty Inc reported better-than-expected fourth-quarter FY24 earnings, although FY25 guidance was below consensus, indicating a transitional year with investments aimed at market share recovery and long-term growth [2][11][13]. Financial Performance - Ulta's fourth-quarter EBIT was $516 million, exceeding the consensus estimate of $441 million [3]. - The company achieved a 1.5% comp growth, surpassing the expected 0.8% [3]. - Gross margin was reported at 38.2%, outperforming the anticipated 37.1% [3]. - Despite a slight sales decline of 1.9% year-over-year, the results beat expectations [11]. Guidance and Future Outlook - For FY25, Ulta guided for 0%-1% comp growth and EPS of $22.50-$22.90, slightly below consensus but better than feared [4]. - The expected mid-point year-over-year EPS decline of 11% reflects significant investments in brand building, digital, and personalization initiatives [4]. - Management remains optimistic about strong beauty demand and market share recovery despite macroeconomic challenges [11]. Analyst Ratings and Price Targets - Goldman Sachs analyst reiterated a Neutral rating and lowered the price forecast from $392.00 to $384.00 [1]. - Stifel analyst maintained a Hold rating and reduced the price target from $475.00 to $400.00 [3]. - Piper Sandler analyst reiterated a Neutral rating and lowered the price forecast from $425.00 to $364.00 [5]. - Canaccord Genuity analyst reiterated a Buy rating and adjusted the price forecast from $538.00 to $526.00 [10]. - Telsey Advisory Group analyst reiterated an Outperform rating and lowered the price target from $500.00 to $460.00 [12]. Market Reaction - Following the earnings report, Ulta shares traded higher by 12.6% at $353.99 [13].