Nicolas HIERONIMUS Chief Executive Officer WORLD LEADER IN BEAUTY €44Bn €6.4Bn 2025 SALES 2025 NET PROFIT1 >7Bn >150 UNITS SOLD COUNTRIES 95,000 ~ €200Bn EMPLOYEES MARKET CAPITALIZATION2 1 Net Profit excluding nonrecurring items after non controlling interests. 2 As of 31 May 2026. PERFORMING TRANSFORMING ACCELERATION TO PREPARE FUTURE GROWTH ENGINES 1 2025 like-for-like sales growth, adjusted for the phasing related to the 2024 and 2025 IT transformation. 1 ~ +3.5%1 MARKET 1 L'Oréal beauty market estimates ...

With a market cap of $30.6 billion, Ulta Beauty, Inc. (ULTA) is a specialty beauty retailer offering a wide range of branded and private-label products across cosmetics, fragrance, haircare, skincare, and bath and body, along with in-store beauty services such as hair, makeup, brow, and skin treatments. It operates across the United States, Mexico, and Kuwait through its stores, digital platforms, and mobile applications. Shares of the beauty products retailer have surpassed the broader market over the p ...

Core Insights - Estee Lauder Companies Inc. and e.l.f. Beauty, Inc. are key players in the cosmetics industry, competing across overlapping product categories while operating at different market segments [1][2] - The cosmetics industry is evolving due to digital engagement, changing consumer preferences, and a focus on value, innovation, and brand differentiation [1] Estee Lauder Overview - Estee Lauder has a market capitalization of approximately $41.3 billion and is recognized as a leader in the prestige beauty sector with a diverse portfolio [2] - The company has shown a return to organic sales growth, with a 3% increase in organic net sales in Q1 of fiscal 2026 and a 300 basis point expansion in adjusted operating margin to 7.3% [3][9] - Adjusted gross margin improved by 60 basis points to 73.3%, driven by procurement efficiencies and reduced promotional intensity [4] - Estee Lauder is gaining market share in key regions such as Mainland China, the U.S., and parts of Western Europe, with strong performance from brands like La Mer and TOM FORD [5] - Product innovation is crucial for Estee Lauder's growth, with new launches enhancing brand relevance and consumer engagement [6] e.l.f. Beauty Overview - e.l.f. Beauty, valued at around $5.1 billion, focuses on affordable, trend-driven products and has achieved its 27th consecutive quarter of net sales growth, with a 14% increase to $343.9 million in Q2 of fiscal 2026 [7][9] - The company gained 140 basis points of market share in its core brand during Q2, reflecting its ability to attract value-conscious consumers [8] - e.l.f. Beauty's growth is supported by expanding distribution and a digitally native operating model, with management projecting a net sales increase of 18-20% for fiscal 2026 [11] Financial Performance and Estimates - The Zacks Consensus Estimate for Estee Lauder indicates a year-over-year sales growth of 4.6% and an EPS increase of 43.7% for the current fiscal year [12] - For e.l.f. Beauty, the current fiscal-year sales estimate suggests a 19.3% increase, while EPS is expected to decrease by 15.3% [14] - Over the past year, Estee Lauder's shares have increased by 39.3%, outperforming the industry growth of 13.2%, while e.l.f. Beauty's shares have declined by 19.8% [15] Valuation and Investment Outlook - Estee Lauder has a forward P/E ratio of 43.8, above its one-year median, while e.l.f. Beauty's forward P/E ratio is 24.71, below its median [17] - Estee Lauder presents a more compelling risk-reward profile due to its operational turnaround and strong earnings growth outlook, while e.l.f. Beauty faces rising margin pressures [19] - Estee Lauder holds a Zacks Rank 2 (Buy), whereas e.l.f. Beauty has a Zacks Rank 3 (Hold) [20]

Core Insights - Ulta Beauty is experiencing increased consumer demand despite economic pressures, with comparable sales rising by 6.3% year over year in Q3 [1] - The launch of the UB Marketplace has expanded product offerings, introducing over 120 new brands [2] - Foot traffic in stores increased by 3.3% year over year, indicating strong customer engagement [3] Sales Performance - The average customer spending per purchase increased by nearly 4%, and the number of transactions rose by 2.4% [1] - Ulta Beauty has raised its sales expectations for fiscal year 2025, now predicting a growth of 4.4% to 4.7% compared to the previous estimate of 2.5% to 3.5% [12] Product Categories - Fragrance was the strongest growing category, followed by skincare and makeup, while hair care sales grew by mid-single digits [5] - Despite price increases due to tariffs, Ulta Beauty is working with brand partners to manage pricing changes [6][8] Consumer Behavior - The beauty industry is seeing a surge in demand as consumers prioritize self-care and wellness, with 59% of consumers feeling cautious about the economy [14][18] - A significant portion of consumers (one-third) plan to gift beauty products during the holiday season, indicating a shift in spending priorities [16] Market Trends - Prestige beauty sales reached $24.1 billion, a 4% increase year over year, while mass market beauty sales increased by 5%, totaling $54.5 billion [15] - The overall beauty industry is positioned for strong performance during the holiday season, with consumers focusing on value and strategic purchases [14][16]

Core Insights - Ulta Beauty has been rated "Overweight" by Morgan Stanley, with a price target raised from $600 to $640, reflecting strong market confidence in the company's performance [1][6] Financial Performance - Ulta reported a 12.9% increase in net sales for its fiscal third quarter, reaching $2.9 billion, surpassing the estimated $2.7 billion [2][6] - The company's earnings per share remained flat at $5.14, exceeding expectations of $4.60, attributed to increased business investments [3] - Ulta's gross profit increased by 14.9%, amounting to $1.16 billion, or 40.4% of sales, despite a decrease in operating income [5] Market Position - Ulta's stock surged over 12% following the announcement of improved sales and profit forecasts, with fiscal third-quarter results exceeding Wall Street expectations [4] - The company has raised its fiscal 2025 outlook, projecting net sales of approximately $12.3 billion, an increase from previous estimates [4][6] - Ulta's market capitalization stands at approximately $26.97 billion, with a trading volume of 3,395,556 shares [5][6] Competitive Landscape - Despite facing challenges from lower-priced alternatives and market saturation, Ulta has managed to outperform expectations [3]

Core Insights - Ulta Beauty, Inc. is a leading beauty retailer in the U.S., offering a wide range of cosmetics, skincare, and haircare products through physical stores and online platforms [1] - The company is set to release its quarterly earnings on December 4, 2025, with an estimated EPS of $4.51 and projected revenue of approximately $2.7 billion, reflecting a 12.3% decline in EPS compared to the same quarter last year [2][6] - Despite the anticipated decline in EPS, revenue is expected to grow by 7.3% year-over-year, driven by steady demand, new brand introductions, and a boost from the online marketplace [3][6] Financial Metrics - Ulta's financial metrics include a P/E ratio of approximately 20.51, a price-to-sales ratio of about 2.11, and a debt-to-equity ratio of approximately 0.88, indicating a moderate level of debt compared to equity [5][6] - The current ratio of approximately 1.39 suggests a solid ability to cover short-term liabilities [5] Challenges - Rising selling, general, and administrative (SG&A) expenses due to higher incentive compensation, store payroll, and overhead costs may impact Ulta's profitability [4][6] - Investors are closely monitoring the impact of these expenses on the company's bottom line and whether revenue growth can offset the increased costs [4]

Core Insights - Ulta Beauty (ULTA) is expected to report quarterly earnings of $4.51 per share, a decline of 12.3% year-over-year, with revenues projected at $2.71 billion, reflecting a 7.3% increase compared to the previous year [1] Earnings Projections - The consensus EPS estimate has been revised downward by 0.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock performance [3] Key Metrics Projections - Analysts predict that the total number of stores open at the end of the quarter will reach 1,494, up from 1,437 in the same quarter last year [5] - The total gross square footage is estimated to be 15,505 million square feet, compared to 15,021 million square feet in the same quarter last year [5] - The number of stores opened during the quarter is expected to be 20, down from 28 in the same quarter last year [6] - Net sales per average total square footage is projected to be $177.01, an increase from $168.44 in the same quarter last year [6] Sales by Category - Net sales by primary category for services are expected to remain at 4.0%, consistent with the previous year [7] - Net sales by primary category for fragrance is projected to be 10.5%, up from 10.0% in the same quarter last year [8] - Haircare net sales are expected to reach 19.5%, slightly down from 20.0% in the previous year [8] - Cosmetics net sales are forecasted at 40.8%, a slight decrease from 41.0% in the same quarter last year [9] Stock Performance - Ulta shares have increased by 3.7% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite, indicating a potential outperformance in the near future [9]

Core Insights - Ulta Beauty, Inc. has a market capitalization of $23.4 billion and is a prominent specialty beauty retailer in the U.S. and Mexico, offering a variety of branded and private label products across multiple categories [1] Financial Performance - Analysts expect Ulta Beauty to report an EPS of $4.45 for fiscal Q3 2025, reflecting a 13.4% decrease from $5.14 in the same quarter last year [2] - For fiscal 2025, the forecasted EPS is $24.33, down 4% from $25.34 in fiscal 2024, but is projected to rebound to $26.95 in fiscal 2026, representing a year-over-year growth of 10.8% [3] Stock Performance - Ulta Beauty's shares have increased by 36.8% over the past 52 weeks, outperforming the S&P 500 Index's gain of 18.1% and the Consumer Discretionary Select Sector SPDR Fund's return of 19.5% during the same period [4] Recent Developments - Following the Q2 2025 results announced on August 28, Ulta Beauty's shares fell by 7.1%. Despite a 9.3% increase in net sales to $2.79 billion and a 9.1% rise in EPS to $5.78, concerns arose due to a decline in operating margin to 12.4% and a 20.5% increase in inventory to $2.4 billion [5] Analyst Sentiment - The consensus among analysts regarding ULTA stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 27 analysts, 13 recommend "Strong Buy," 2 suggest "Moderate Buy," 11 indicate "Hold," and 1 advises "Strong Sell." The average price target for Ulta Beauty is $589.48, indicating a potential upside of nearly 14% from current levels [6]

Core Insights - Ulta Beauty, Inc. (ULTA) reported a 2.9% increase in comparable sales for the first quarter of fiscal 2025, driven by higher average ticket values and slight growth in transactions [1][7] - The growth was primarily supported by strong performance in fragrance and wellness categories, with double-digit growth in fragrance and high-single-digit gains in body care and sun care [1][7] - However, the haircare segment remained flat overall, with declines in mass hair and tools, while the makeup category experienced slightly negative comparable sales due to weakness in mass makeup [1][7] Sales Performance - Both digital and store channels contributed to the comparable sales growth, with e-commerce sales rising approximately 10% and comparable store sales increasing in the low single digits [2] - The average ticket value grew by 2.3%, mainly due to higher average selling prices, although this was partially offset by a decline in units per transaction [2] - Promotional activities were more disciplined, with the elimination of overlapping offers and targeted member data usage enhancing operational execution [2] Future Outlook - Ulta Beauty anticipates comparable sales growth for fiscal 2025 to range from flat to up 1.5%, with the second half projected to vary from down low-single digits to modest growth [3] - Leadership emphasized a cautious approach to guidance, highlighting the need for strength in select categories and channels to broaden for steady comparable sales performance [3] Stock Performance - Ulta Beauty's shares have risen 39.3% over the past three months, outperforming the industry growth of 28.7% and the broader Retail and Wholesale sector and S&P 500 index growth of 18% and 23.3%, respectively [4] - The stock closed at $477.79, trading 2.9% below its 52-week high of $491.98, with technical indicators showing strong performance above its 50 and 200-day simple moving averages [8][12] Valuation Metrics - Ulta Beauty currently trades at a forward 12-month P/E ratio of 19.57, which is above the industry average of 17.94, indicating a premium valuation relative to peers [9] Earnings Estimates - The Zacks Consensus Estimate for EPS has seen downward revisions, with current quarter estimates declining by 4 cents to $4.87 and fiscal year estimates down by 16 cents to $23.39 per share [11]

Group 1: Michael Burry's Investment Actions - Michael Burry sold off his entire investment portfolio in Q1, except for Estee Lauder, in which he doubled his position [2] - He bought put options on Nvidia and several Chinese ADRs, indicating a bearish outlook on these stocks [3] - Burry's actions suggest a strategic pivot, betting against the U.S. and Chinese markets while maintaining confidence in Estee Lauder [4] Group 2: Estee Lauder's Business Overview - Estee Lauder is a global beauty conglomerate with a portfolio of luxury brands, including Clinique, MAC, and La Mer [5] - The company has faced challenges due to its exposure to China and the duty-free shopping market, with sales in China recovering slowly post-COVID [6][7] - Increased competition from newer prestige beauty brands has also impacted Estee Lauder's market position in the U.S. [9] Group 3: Financial Performance and Strategy - Estee Lauder's sales declined by 10% and adjusted operating income fell by 27% last quarter, with retail travel revenue dropping 28% [14] - The company is implementing a profit recovery and growth plan, which includes cost reductions and layoffs to restore sales growth and improve margins [13] - Despite current challenges, if the company can regain lost earnings, there could be significant upside potential for its stock [15][16]