Ulta Beauty to Report Q2 Earnings: Here's What You Should Expect

Core Insights - Ulta Beauty, Inc. (ULTA) is expected to report second-quarter fiscal 2025 earnings on August 28, after market close [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal second-quarter revenues is $2.65 billion, reflecting a 4% increase from the prior-year quarter [2] - The consensus estimate for quarterly earnings has risen by 2.3% in the last 30 days to $4.98 per share, indicating a decline of 6% from the figure reported in the year-ago quarter [2] - Ulta Beauty has delivered a trailing four-quarter earnings surprise of 11.9%, on average [2] Growth Drivers - Ulta Beauty is a leader in beauty retail, integrating mass, prestige, and luxury brands into a unique shopping experience [3] - The company's omnichannel strategy combines physical retail with digital innovations, enhancing customer engagement and sales through upgraded mobile app features and AI-driven personalized experiences [3] - Continued investments in marketing and social platforms are enhancing brand visibility, while a focus on product assortment and loyalty engagement is driving traffic [4] - The emphasis on skincare, particularly strong performances from brands like Sol de Janeiro and Tatcha, is contributing to growth [4] Challenges - Ulta Beauty's fiscal second-quarter performance is under pressure from rising selling, general and administrative (SG&A) expenses, which are expected to increase by 180 basis points to 27.1% of net sales [5] - Margin performance is likely to be affected by increased supply-chain expenses [5] - A persistent decline in the makeup category poses a risk to the company's growth momentum [5] Earnings Prediction - The model predicts an earnings beat for Ulta Beauty, supported by a positive Earnings ESP of +1.19% and a Zacks Rank of 2 (Buy) [6][7]