Ulta Beauty Gears Up for Q3 Earnings: Here's What You Should Know

Core Insights - Ulta Beauty, Inc. is expected to report third-quarter fiscal 2025 earnings on December 4, with revenues projected at $2.71 billion, reflecting a 7.3% increase year-over-year [1][9] - The consensus estimate for quarterly earnings has risen by 3 cents to $4.51 per share, indicating a decline of 12.3% from the previous year [2] Factors Impacting Earnings - The company is anticipated to maintain steady growth in Q3, benefiting from strong fragrance sales, improving makeup trends, and new brand introductions [3][9] - An invite-only online marketplace is expected to enhance customer engagement and create additional revenue opportunities [3] Omnichannel Strategy - Ulta Beauty continues to leverage its omnichannel ecosystem, driving traffic and conversion through store-fulfilled e-commerce, loyalty personalization, and digital marketing tools [4] - Investments in social platforms and exclusive brand partnerships are enhancing brand visibility, while the expansion of wellness products is strengthening long-term growth prospects [4] SG&A Expenses - The company is facing rising selling, general and administrative (SG&A) expenses, which increased by 15% in the fiscal second quarter, impacting overall profitability [5][9] - SG&A expenses as a percentage of sales are projected to rise by 280 basis points to 29.8% in Q3 [5] Earnings Prediction - The Zacks model predicts an earnings beat for Ulta Beauty, supported by a positive Earnings ESP of +1.84% and a Zacks Rank of 2 (Buy) [6]