
Ulta Beauty (ULTA) Stock Forecast & Price Target
Ulta Beauty (ULTA) Analyst Ratings
Bulls say
Ulta Beauty, the largest specialized beauty retailer in the US, has demonstrated a resilient revenue growth trajectory, with an estimated year-over-year increase of 3.4% driven by new store contributions and a 3.0% rise in average ticket prices. The company's gross margin for the fourth quarter of 2024 exceeded consensus expectations, increasing by 50 basis points year-over-year to 38.2%, attributed to improved inventory management and a favorable channel mix. Furthermore, Ulta ended the fourth quarter with a strong cash position of $703.2 million, alongside ongoing expansion initiatives, including international ventures, which position the firm for continued growth and enhanced profitability.
Bears say
Ulta Beauty is projected to achieve total sales growth of only 2.6% year-over-year, a downgrade from a prior estimate of 3.1%, indicating a slowdown in revenue growth, particularly with fourth-quarter sales down 1.9%. The company has also guided its earnings per share (EPS) in the range of $22.50 to $22.90, which falls short of both last year's EPS and prior consensus estimates, reflecting underperformance in profitability. Furthermore, makeup category performance has worsened, with mid-single-digit declines in comparable store sales, and a notable drop of 6% in spending per member indicates weakening consumer sentiment and demand.
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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