
Ulta Beauty (ULTA) Stock Forecast & Price Target
Ulta Beauty (ULTA) Analyst Ratings
Bulls say
Ulta Beauty, as the largest specialized beauty retailer in the U.S., exhibited strong revenue growth, with an estimated year-over-year increase of 3.4%, driven by new store contributions and increased comparable sales. The company reported a gross margin of 38.2% in the fourth quarter of fiscal year 2024, outperforming consensus estimates and reflecting improvements in inventory management and merchandise margins, despite facing higher supply chain costs. Additionally, Ulta's solid cash position of $703.2 million at the end of the quarter, alongside potential for store expansion and margin enhancement, underlines a fundamentally positive outlook for the firm's financial health and growth trajectory.
Bears say
Ulta Beauty is projected to experience a total sales growth of only 2.6% year-over-year, which is a decrease from the previously estimated 3.1%, highlighting concerns about revenue momentum. The company's fourth-quarter earnings before interest and taxes (EBIT) were affected by a decline in net sales of 1.9% year-over-year and a disappointing decrease in makeup category sales, which saw mid-single-digit declines. Additionally, management's earnings per share (EPS) guidance of $22.50-$22.90 falls short of both prior expectations and the previous year’s EPS of $25.34, indicating potential ongoing challenges in maintaining profitability and market share.
This aggregate rating is based on analysts' research of Ulta Beauty and is not a guaranteed prediction by Public.com or investment advice.
Ulta Beauty (ULTA) Analyst Forecast & Price Prediction
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