Ulta Beauty, Inc. (NASDAQ: $ULTA) operates as a specialty beauty retailer, conducting its business through specialty retail stores that specialize in the sale of cosmetics, fragrance, haircare, and skincare products, as well as related accessories and services.
These stores also include full-service salons. With an inventory of around 25,000 products spanning various categories and price ranges,
Ulta Beauty’s offerings include its private label and the Ulta Beauty Collection. The company’s portfolio encompasses six main categories: cosmetics; haircare products and styling tools; skincare; fragrance and bath; services; and accessories and others.
In addition to its physical stores, Ulta Beauty’s e-commerce website and mobile applications contribute to product accessibility.
The company also provides private-label and co-branded credit card programs, loyalty programs, and gift cards. With a focus on beauty services like hair, makeup, brows, and skincare, Ulta Beauty operates approximately 1,355 stores across 50 states.
Ulta Beauty Offerings
Ulta Beauty offers an extensive range of cosmetics, skincare, and fragrances, encompassing both high-end and drugstore brands, alongside its own line of beauty products and fragrances. Notable brands in their inventory include MAC Cosmetics, Kylie Cosmetics, and ColourPop cosmetics.
During the first quarter, concluding in May 2014, Ulta Beauty recorded sales of $713.8 million. By the end of the second quarter in August 2014, the company reported a substantial 22.2 percent increase in total sales, accompanied by a 9.8 percent growth in comparable store sales.
As of 2019, Ulta had established its presence in 48 states, with a concentration of stores primarily situated in the East Coast region and California. In August 2021, Target began retailing Ulta’s products.
Ulta Beauty demonstrated its commitment to diversity and inclusion by participating in the 15 percent pledge, pledging to allocate more shelf space to black-owned businesses.
In a significant move on July 8, 2022, Ulta announced a collaboration with Allure to showcase a curated collection of its 25,000 products both online and offline in Allure’s stores. This collaborative effort, spanning from July to September 2022, featured renowned brands such as Fenty Beauty, Drybar, Olaplex, Tula, The Ordinary, Peter Thomas Roth, CosRX, NYX, Morphe, and Beekman 1802, selected by Ulta’s merchandising team.
Ulta Beauty (ULTA) Expected to Beat Earnings Estimates: What to Know Ahead of Q3 Release
Ulta Beauty (ULTA) is anticipated to reveal a year-over-year decline in earnings despite higher revenues in the quarterly results ending October 2023. The stock’s movement post-announcement could experience an upward trend if the reported figures exceed expectations in the upcoming earnings release scheduled for November 30. Conversely, a shortfall in these key numbers may result in a decline in the stock.
The assessment of the immediate price shift and future earnings outlook largely hinges on the management’s discussion of business conditions during the earnings call. It is essential to evaluate the likelihood of a positive earnings per share (EPS) surprise.
In the last 30 days, the consensus EPS estimate for the quarter has been adjusted 0.33% higher, indicating a collective reassessment by covering analysts during this period. However, it’s crucial for investors to recognize that an aggregate change may not consistently reflect the direction of revisions made by individual analysts.
Earnings Whisper
The anticipation of estimate revisions prior to a company’s earnings disclosure provides insights into the business conditions for the relevant period. Our proprietary surprise prediction model, the Zacks Earnings ESP (Expected Surprise Prediction), centers on this insight.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter, with the Most Accurate Estimate being a more recent version of the Zacks Consensus EPS estimate.
The rationale is that analysts adjusting their estimates just before an earnings release may possess the latest information, potentially making their predictions more accurate than earlier consensus estimates.
Wall Street Analysts Forecast Growth
ULtA shares have recently been the subject of analysis by various experts. In a research report on Friday, August 25th, DA Davidson revised their price target for Ulta Beauty shares from $540.00 to $495.00, maintaining a “buy” rating.
On Tuesday, November 7th, Evercore ISI initiated coverage on Ulta Beauty, assigning an “outperform” rating and a $460.00 target price for the company. Wells Fargo & Company, in a research note on Friday, August 25th, raised their target price on Ulta Beauty from $350.00 to $375.00, accompanying it with an “underweight” rating.
Conversely, on Tuesday, October 10th, Piper Sandler lowered their target price from $575.00 to $540.00. Finally, on Monday, October 23rd, Raymond James revised their target price on Ulta Beauty from $550.00 to $500.00 and maintained a “strong-buy” rating for the company.
Among the analysts, one has given the stock a sell rating, five recommend a hold, fourteen assign a buy rating, and one has given a strong buy rating to Ulta Beauty’s stock.
Is Ulta only in the USA?
Ulta Beauty exclusively operates within the American domestic market. As of January 28, 2023, Ulta boasted a total of 1,355 stores spread across all 50 states, with approximately 250 of these stores situated within Target stores.
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