Baypointe Partners LLC bought a new stake in shares of Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 15,000 shares of the specialty retailer’s stock, valued at approximately $6,765,000. Ulta Beauty makes up about 16.2% of Baypointe Partners LLC’s holdings, making the stock its 2nd biggest holding.
Several other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Ulta Beauty during the 2nd quarter valued at $1,815,712,000. State Street Corp grew its holdings in shares of Ulta Beauty by 2.5% during the 4th quarter. State Street Corp now owns 2,025,565 shares of the specialty retailer’s stock worth $1,225,487,000 after acquiring an additional 50,305 shares during the period. Diamant Asset Management Inc. boosted its holdings in shares of Ulta Beauty by 52,171.0% during the 1st quarter. Diamant Asset Management Inc. now owns 1,474,042 shares of the specialty retailer’s stock valued at $77,050,000 after buying an additional 1,471,222 shares in the last quarter. Geode Capital Management LLC grew its holdings in Ulta Beauty by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 1,240,210 shares of the specialty retailer’s stock worth $747,587,000 after purchasing an additional 21,947 shares during the period. Finally, T. Rowe Price Investment Management Inc. grew its stake in shares of Ulta Beauty by 0.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 974,223 shares of the specialty retailer’s stock worth $589,415,000 after buying an additional 2,463 shares during the last quarter. Institutional investors own 90.39% of the company’s stock.
Ulta Beauty Stock Up 1.0% ULTA stock opened at $557.11 on Friday. The firm has a market capitalization of $23.82 billion, a P/E ratio of 20.30, a price-to-earnings-growth ratio of 1.65 and a beta of 0.85. Ulta Beauty Inc. has a 52 week low of $443.60 and a 52 week high of $714.97. The company has a fifty day simple moving average of $503.61 and a two-hundred day simple moving average of $529.93.
Ulta Beauty (NASDAQ:ULTA – Get Free Report) last issued its quarterly earnings data on Thursday, August 27th. The specialty retailer reported $6.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.22 by $0.33. The business had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.99 billion. Ulta Beauty had a return on equity of 45.40% and a net margin of 9.34%.The company’s quarterly revenue was up 8.9% compared to the same quarter last year. During the same period in the prior year, the business posted $5.78 earnings per share. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. As a group, analysts anticipate that Ulta Beauty Inc. will post 28.93 EPS for the current year. Wall Street Analysts Forecast Growth A number of research firms have weighed in on ULTA. JPMorgan Chase & Co. reduced their price objective on shares of Ulta Beauty from $750.00 to $631.00 and set an “overweight” rating for the company in a research note on Wednesday, June 3rd. Raymond James Financial reissued a “strong-buy” rating and issued a $700.00 target price on shares of Ulta Beauty in a report on Friday, August 28th. Argus set a $550.00 price objective on shares of Ulta Beauty in a research report on Thursday, June 18th. Morgan Stanley cut their price objective on Ulta Beauty from $700.00 to $630.00 and set an “overweight” rating for the company in a research note on Wednesday, June 3rd. Finally, Barclays cut their price target on Ulta Beauty from $647.00 to $645.00 and set an “overweight” rating for the company in a research note on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $626.59.
Check Out Our Latest Stock Report on Ulta Beauty
Key Stories Impacting Ulta Beauty Here are the key news stories impacting Ulta Beauty this week:
Positive Sentiment: Analyst upgrade supports the shares. Ulta Beauty gained attention after an analyst upgrade, adding to recent positive momentum and reinforcing confidence in the retailer’s earnings outlook. Ulta Beauty Trading Up After Analyst Upgrade Positive Sentiment: Recent earnings and guidance remain key catalysts. Ulta reported quarterly revenue of approximately $3.04 billion and adjusted earnings of $6.55 per share, exceeding consensus estimates. Sales increased 8.9% year over year, while the company raised fiscal 2026 earnings guidance to roughly $28.70–$29.00 per share. Continued growth in prestige hair care also supports the investment case. Ulta Beauty Earnings Beat Keeps Valuation In Focus Positive Sentiment: Loss-prevention efforts could help margins. Ulta is using Flock license-plate cameras at some stores, a move that may deter organized retail crime and reduce merchandise losses, although privacy and implementation considerations remain. Ulta Beauty Is Using Flock Cameras at Some Stores Neutral Sentiment: Investor conference participation may provide additional outlook commentary. Management’s upcoming conference appearance could offer updates on consumer demand, store growth and guidance, but no new financial information was announced. Ulta Beauty to Participate in Upcoming Investor Conference Neutral Sentiment: Promotional activity is intensifying. Ulta’s 21+ Days of Beauty and Labor Day promotions may drive traffic and sales, but heavier discounting could pressure margins. Ulta 21+ Days of Beauty Event Negative Sentiment: Valuation and slowing comps remain risks. Analysts noted that the earnings beat was accompanied by moderating comparable-sales growth, while valuation screens suggest the stock may already reflect much of the improved guidance. Ulta Beauty’s Earnings Beat Was Stronger Than the Stock’s Reaction Ulta Beauty Stock Could Be Overvalued Negative Sentiment: Shoplifting and competition remain headwinds. A reported shoplifting incident highlights ongoing shrink risk, while Target’s planned beauty studios could increase competitive pressure in beauty retail. Lexington Police Work to Identify Alleged Ulta Beauty Shoplifter Target Beauty Studios Debuting Insiders Place Their Bets In other Ulta Beauty news, Director George R. Mrkonic, Jr. sold 383 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $475.84, for a total value of $182,246.72. Following the completion of the sale, the director owned 2,404 shares of the company’s stock, valued at $1,143,919.36. This trade represents a 13.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.20% of the stock is owned by company insiders.
Ulta Beauty Company Profile (Free Report)
Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
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Ulta Beauty Inc. (NASDAQ:ULTA) shares are in the spotlight, with earnings on deck today, a technical setup testing the 200-day average and Edge Rankings all drawing attention.
Ulta Beauty stock is holding steady today. What should traders watch with ULTA? Earnings Preview & HistoryUlta is scheduled to report second-quarter fiscal 2026 earnings today after market close. Analysts estimate EPS of $6.18 along with revenue of $2.95 billion. For the prior quarter, Ulta reported EPS of $7.74, beating the consensus estimate of $6.86. The company also posted revenue of $3.16 billion, exceeding the consensus estimate of $3.09 billion.
Ulta Watch: Comps, Margins, ExpansionInvestors will be closely tracking comparable sales trends, since Ulta faces its toughest comp comparison of the year against last year’s strong second-quarter results. Management’s commentary on fiscal 2026 guidance will also be in focus, after the company raised its diluted EPS outlook to a range of $28.36 to $28.80 last quarter while maintaining full-year net sales growth guidance of 6% to 7% and comparable sales growth guidance of 2.5% to 3.5%.
Gross margin trends should draw particular attention given management’s prior commentary on elevated fuel and transportation costs pressuring the outlook, along with updates on store expansion plans, including the Space NK integration and the company’s planned flagship Times Square location.
A Recovery Attempt Testing the 200-Day AverageAt $547.00, Ulta is back in a constructive spot versus its shorter-term trend gauges: it’s trading above the 20-day SMA ($529.66), 50-day SMA ($494.59), and 100-day SMA ($504.74), which typically keeps dip-buyers engaged on pullbacks. The catch is the longer-term reference point—ULTA is still trading below the 200-day SMA ($555.56), so rallies can run into supply as the stock approaches that zone.
MACD is the cleaner momentum lens right now: it’s below its signal line and the histogram is negative, which points to upside pressure cooling versus the prior upswing unless buyers can rebuild momentum. That "fading momentum" read fits a market where price is holding up, but follow-through needs to show up quickly to avoid another rollover.
The moving-average structure is mixed: the 20-day SMA is above the 50-day SMA (a bullish near-term alignment), but the 50-day SMA remains below the 200-day SMA after the death cross in May, which is a longer-term caution flag. In practical terms, ULTA is acting like a recovery attempt inside a bigger trend that still needs confirmation.
Key Resistance: $566.50 — a nearby ceiling that sits just above the current price and lines up with the stock’s need to clear the 200-day area to improve the longer-term trend read. Key Support: $493.00 — a nearby floor that’s close to the 50-day SMA zone, where buyers have a clearer technical reason to defend pullbacks. Benzinga Edge RankingsBelow is the Benzinga Edge scorecard for Ulta, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Weak (Score: 22.12) — The stock’s recent pace is lagging, which fits the idea that rallies may need confirmation before they become trend moves. Quality: Strong (Score: 93.51) — The business scores well on quality factors, which can help support the stock during market pullbacks. Value: Neutral (Score: 54.77) — Valuation looks closer to the middle of the pack rather than screaming cheap or expensive. Growth: Strong (Score: 84.75) — Growth metrics screen well, which can keep longer-term investors interested if the chart firms up. The Verdict: Ulta’s Benzinga Edge signal reveals a quality-and-growth-leaning profile with weak momentum. For longer-term bulls, the setup improves if price can reclaim the 200-day area; for tactical traders, the low momentum score argues for waiting on cleaner upside confirmation or buying closer to support.
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Ulta Shares Climb HigherULTA Price Action: At the time of publication, Ulta shares are trading 1.13% higher at $549.35, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Ulta Beauty zvýšila celoroční výhled tržeb i zisku díky silné poptávce po kosmetice. Čtvrtletní tržby 3,04 miliardy USD a EPS 6,55 USD překonaly odhady.
Cosmetics retailer Ulta Beauty (ULTA.O) raised its annual sales and profit forecasts on Thursday, betting that marketing and product assortment investments would drive demand as it continues opening stores in the U.S.
Net sales climbed 8.9% to $3 billion, lifted by comparable sales, the Space NK acquisition and 13 net U.S. store openings in the second quarter — nearly half of its first-half total.
Despite sticky inflation, higher-income consumers and young shoppers continue to splurge on trendy and higher-margin fragrance and makeup brands.
Ulta Beauty Chief Executive Kecia Steelman said customers did not trade down in the second quarter, and are continuing to shop for prestige products.
"We've not seen any notable changes in consumer behavior in the quarter," Steelman said. "We're seeing increases in spend across the broader segmentation."
The company, which is in the midst of a turnaround under Steelman, has tapped that demand with celebrity brand exclusives such as rapper Megan Thee Stallion's Hot Girl Summer fragrance, and a push into TikTok Shop that has boosted Gen-Z sales.
In its earnings call, Ulta said nearly half of its sales are coming from exclusive brands and products in its assortment.
"Shaky consumer confidence may even be working in Ulta Beauty's favor by reinforcing the 'lipstick effect' – the tendency for consumers to continue spending on smaller, affordable luxuries like beauty products," research firm Placer.ai said.
The company expects full-year sales to grow between 6.7% and 7.2%, up from its prior forecast of 6% to 7%.
Ulta expects annual earnings per share in the range of $28.70 to $29, compared with its prior forecast of $28.36 to $28.80 per share.
The company's quarterly sales of $3.04 billion beat analysts' average estimate of $2.96 billion, according to data compiled by LSEG.
Its quarterly earnings per share of $6.55 topped estimates of $6.19.
"Ulta's strong quarter is a testament to the work the company has done to establish itself as shoppers' preferred beauty retailer, despite growing competition from the likes of Amazon and TikTok," eMarketer analyst Rachel Wolff said.
Beacon Pointe Advisors ve 2. čtvrtletí získala novou pozici v akciích Ulta Beauty a koupila 18 429 akcií za zhruba 8,311 milionu USD. Ulta zároveň oznámila EPS 6,55 USD a výnosy 3,04 miliardy USD, obojí nad odhady.
Beacon Pointe Advisors LLC acquired a new position in shares of Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 18,429 shares of the specialty retailer’s stock, valued at approximately $8,311,000.
Other institutional investors also recently modified their holdings of the company. Focus Partners Wealth increased its stake in shares of Ulta Beauty by 231.6% in the 1st quarter. Focus Partners Wealth now owns 3,744 shares of the specialty retailer’s stock valued at $1,372,000 after buying an additional 2,615 shares during the period. Intech Investment Management LLC boosted its holdings in Ulta Beauty by 48.9% in the first quarter. Intech Investment Management LLC now owns 4,795 shares of the specialty retailer’s stock valued at $1,758,000 after acquiring an additional 1,574 shares during the last quarter. Sivia Capital Partners LLC bought a new position in Ulta Beauty in the second quarter valued at about $466,000. Jump Financial LLC acquired a new stake in Ulta Beauty in the second quarter worth about $1,196,000. Finally, Daiwa Securities Group Inc. increased its position in Ulta Beauty by 0.9% in the second quarter. Daiwa Securities Group Inc. now owns 7,475 shares of the specialty retailer’s stock worth $3,497,000 after purchasing an additional 70 shares during the period. 90.39% of the stock is owned by institutional investors.
Ulta Beauty Stock Performance Shares of ULTA opened at $517.50 on Friday. The stock has a 50 day simple moving average of $497.56 and a 200 day simple moving average of $534.74. Ulta Beauty Inc. has a 52-week low of $443.60 and a 52-week high of $714.97. The firm has a market capitalization of $22.25 billion, a PE ratio of 18.86, a P/E/G ratio of 1.65 and a beta of 0.87.
Ulta Beauty (NASDAQ:ULTA – Get Free Report) last announced its earnings results on Thursday, August 27th. The specialty retailer reported $6.55 EPS for the quarter, topping the consensus estimate of $6.22 by $0.33. Ulta Beauty had a net margin of 9.34% and a return on equity of 45.28%. The firm had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.99 billion. During the same period last year, the company posted $5.78 EPS. The business’s quarterly revenue was up 8.9% on a year-over-year basis. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. Equities research analysts predict that Ulta Beauty Inc. will post 28.77 EPS for the current fiscal year. Analyst Upgrades and Downgrades A number of research analysts have issued reports on ULTA shares. Loop Capital restated a “hold” rating and set a $550.00 target price on shares of Ulta Beauty in a research report on Wednesday, June 3rd. Argus set a $550.00 price target on shares of Ulta Beauty in a research report on Thursday, June 18th. TD Cowen reissued a “buy” rating on shares of Ulta Beauty in a research note on Tuesday, July 21st. Barclays cut their price objective on shares of Ulta Beauty from $647.00 to $645.00 and set an “overweight” rating on the stock in a report on Friday. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Ulta Beauty from $750.00 to $631.00 and set an “overweight” rating on the stock in a research note on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $626.59.
Check Out Our Latest Report on ULTA
Key Ulta Beauty News Here are the key news stories impacting Ulta Beauty this week:
Positive Sentiment: Quarterly results exceeded expectations. Ulta reported $6.55 in EPS versus the $6.20 consensus and revenue of approximately $3.04 billion, up 8.9% year over year and ahead of the $2.99 billion estimate. Comparable sales rose 3.8%, while digital sales, loyalty growth, new brands and stronger execution supported performance. Ulta Beauty Q2 Earnings Beat as Sales Rise, FY26 View Raised Positive Sentiment: Ulta raised its fiscal 2026 outlook and expanded capital returns. The company now expects EPS of $28.70–$29.00, up from $28.36–$28.80, and revenue of roughly $13.2–$13.3 billion. It also increased its planned share repurchases to $1.8 billion, which could provide support for per-share earnings. Ulta Beauty Targets Sales Growth and Buybacks Neutral Sentiment: Analysts remain broadly constructive, but estimates are mixed. DA Davidson raised its price target to $625 and maintained a Buy rating, while Bank of America lowered its target to $650 but also kept a Buy rating. The conflicting revisions suggest confidence in Ulta’s long-term share gains, alongside caution about valuation and execution risks. Negative Sentiment: The market reaction reflects concerns about forward momentum. Management indicated that third-quarter comparable-sales comparisons may be weaker than fourth-quarter comparisons, increasing the risk of a temporary slowdown. Investors are also focused on Target’s rollout of its own Beauty Studio in more than 600 stores, including five former Ulta locations in South Carolina, potentially intensifying competition for prestige beauty customers. Ulta is responding by emphasizing exclusive products and brand differentiation. Ulta Leans Into Exclusivity Amid Target Competition Insider Activity In related news, Director George R. Mrkonic, Jr. sold 383 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $475.84, for a total value of $182,246.72. Following the sale, the director directly owned 2,404 shares of the company’s stock, valued at approximately $1,143,919.36. The trade was a 13.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.20% of the stock is owned by corporate insiders.
Ulta Beauty Company Profile (Free Report)
Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.
The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.
Further Reading Five stocks we like better than Ulta Beauty 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding ULTA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Ulta Beauty Inc. (NASDAQ:ULTA – Free Report).
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Klarna po zveřejnění výsledků odepisuje 19,6 %, protože snížila celoroční výhled objemu transakcí i tržeb. Trhy zároveň v úvodu obchodování klesají, Nasdaq Composite ztrácí 1,24 %.
Index Dow Jones -0,09 % na 53411,87 b. S&P 500 -0,53 % na 7704,15 b. Nasdaq Composite -1,24 % na 26315,63 b.
Nejsledovanější americké indexy v úvodu úterního obchodování ztrácejí. V popředí poklesu jsou akcie spojené s výrobou čipů pro AI.
Společnost Meta Platforms (-3,7 %) dnes míří k soudu do ostře sledovanému střetu s koalicí státních generálních prokurátorů kvůli tvrzením, že firma záměrně navrhla Facebook a Instagram tak, aby u mladých uživatelů podporovaly kompulzivní chování a vznik závislosti.
Společnost Targa Resources (+6,2 %) oznámila, že uzavřela nové dvacetileté infrastrukturní smlouvy na bázi poplatků, které podpoří rozvoj těžebních lokalit společnosti ExxonMobil (+1,6 %) v Permské pánvi. V návaznosti na tyto dohody Targa zvýšila svůj odhad růstových kapitálových výdajů pro rok 2026 na přibližně 5,0 mld. USD.
Největší americký obchodník s domácím vybavením Home Depot (+0,1 %) zveřejnil hospodářské výsledky za druhý kvartál. Celkové tržby meziročně vzrostly o 5,7 % na 47,86 mld. USD a porovnatelné tržby se zvýšily o 1,7 %, čímž překonaly očekávání trhu.
Švédská finančně-technologická společnost Klarna (-19,6 %) zveřejnila výsledky hospodaření za 2Q 2026. Výnosy i zisk na akcii překonaly odhady trhu. Firma nicméně snížila celoroční výhled objemu transakcí i výnosů, a to kvůli kurzovým vlivům a obezřetnějšímu pohledu na německý trh, který je pro Klarnu objemově největší. Společnost zároveň oznámila odchod finančního ředitele.
Čínská technologická společnost Baidu (-8,9 %), která provozuje mimo jiné největší čínský vyhledávač či autonomní vozidla Apollo, dnes oznámila výsledky za 2Q. Výnosy klesly již pátý kvartál v řadě, přičemž byly taženy dolů online marketingovými výnosy, které meziročně poklesly o 19 %. Byznys poháněný umělou inteligencí naopak rostl meziročně o 25 % a na výnosech hlavního byznysu se podílel polovinou.
Index S&P 500 -0,53 % na 7704,15 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zdravotní péče +1,8 % Informační technologie -1,9 % Energie +1,1 % Průmysl -0,9 % Nezbytná spotřeba +1,1 % Komunikační služby -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Targa Resources Corp (TRGP) +6,2 % Coherent Corp (COHR) -9,8 % Ulta Beauty (ULTA) +5,1 % Teradyne (TER) -8,0 % GoDaddy (GDDY) +5,0 % Marvell Technology (MRVL) -6,8 % Intuit (INTU) +4,8 % Flex (FLEX) -6,4 % Tapestry (TPR) +4,4 % Ciena Corp (CIEN) -6,3 % Zdroj: Bloomberg
Ulta Beauty v 1. čtvrtletí fiskálního roku 2026 zvýšila srovnatelné tržby o 5,3 % díky růstu napříč všemi kanály a klíčovými kategoriemi. Firma dál posiluje omnichannel, věrnostní program i digitální služby včetně TikTok Shop, AI a doručení ve stejný den.
Key Takeaways ULTA delivered 5.3% comparable sales growth as all channels and major categories contributed positively.ULTA's loyalty program had nearly 47 million members, supporting personalization and customer insights.TikTok Shop, AI and same-day delivery are expanding Ulta Beauty's digital reach and guest engagement. Ulta Beauty, Inc.’s (ULTA - Free Report) omnichannel model remains an important part of its customer proposition, supported by the company’s diverse assortment, digital convenience and loyalty program. In the first quarter of fiscal 2026, the company delivered 5.3% comparable sales growth, with broad-based performance as all channels and major categories contributed positively to results.
The company highlighted the convenience of its buy anywhere, fill anywhere capabilities, including Buy Online Pickup In Store, as a key driver of e-commerce growth and guest satisfaction. Ulta Beauty is also enhancing digital convenience through expanded same-day delivery via Uber Eats and new Buy Now, Pay Later options through Klarna.
Ulta Beauty’s digital strategy also includes TikTok Shop, which gives the company another way to reach younger consumers and attract new guests. The company sees the platform as complementary to its e-commerce business and a way to bring customers into its broader ecosystem. Meanwhile, its loyalty program grew to nearly 47 million members, up 4% year over year. Ulta Beauty is using this first-party data to improve personalization, understand customer behavior, predict repeat purchases and drive cart conversion.
Additionally, Ulta Beauty is leveraging AI to optimize its business and enhance the guest shopping experience. The company introduced Ulta AI, an online shopping agent focused on discovery, personalization and shopping experiences, with promising initial results. The company is also integrating with leading AI platforms like Google’s Gemini to enable agentic commerce, while remaining focused on leveraging the strengths of its partners to maximize the AI opportunity.
Overall, Ulta Beauty continues to lean on its differentiated omnichannel experience, loyalty program and diverse assortment as it pursues long-term profitable growth.
The Zacks Rundown for ULTAThis Zacks Rank #2 (Buy) company’s shares have gained 6.3% in the past year against the industry’s 7.9% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 18.02, higher than the industry’s average of 16.27.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 12.3% and 11.1%, respectively.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 23.9% and 36.1%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
DICK’S Sporting Goods, Inc. (DKS - Free Report) operates as an omni-channel sporting goods retailer primarily in the United States. At present, DKS holds a Zacks Rank of 2.
The Zacks Consensus Estimate for DKS’ current fiscal-year sales and earnings implies growth of 50.4% and 7.9%, respectively, from the year-ago figures. DKS delivered a trailing four-quarter earnings surprise of nearly 1%, on average.
Sally Beauty Holdings, Inc. (SBH - Free Report) operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. At present, SBH carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SBH’s current fiscal-year sales and earnings implies growth of 0.8% and 9%, respectively, from the year-ago figures. SBH delivered a trailing four-quarter earnings surprise of 6.4%, on average.
Ulta Beauty (ULTA - Free Report) closed the most recent trading day at $548.66, moving -2.92% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.32%.
The beauty products retailer's stock has climbed by 20.45% in the past month, exceeding the Retail-Wholesale sector's gain of 7.55% and the S&P 500's gain of 3.42%.
Investors will be eagerly watching for the performance of Ulta Beauty in its upcoming earnings disclosure. The company is predicted to post an EPS of $6.16, indicating a 6.57% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.97 billion, up 6.45% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.78 per share and revenue of $13.21 billion, indicating changes of +12.25% and +10.28%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Ulta Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. Ulta Beauty is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Ulta Beauty is presently trading at a Forward P/E ratio of 19.64. This represents a premium compared to its industry average Forward P/E of 16.29.
Investors should also note that ULTA has a PEG ratio of 1.76 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous industry had an average PEG ratio of 1.82 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ULTA in the coming trading sessions, be sure to utilize Zacks.com.
BofA zopakovala doporučení Buy pro Ulta Beauty a vidí možnost získat zpět část tržeb po ukončení partnerství s Targetem. Odhaduje, že získání zpět 20 % až 60 % z dřívějších 650 milionů USD GMV může přidat 130 až 390 milionů USD tržeb.
BofA reiterated its Buy rating and $685 price forecast on Ulta stock on Wednesday, pointing to a substantial revenue recapture potential.
Recapturing Target GMV Offers Incremental GrowthAccording to the analyst note, the $650 million in estimated gross merchandise value (GMV) previously generated through Target locations sat directly on Target’s profit and loss (P&L) statement. Consequently, any sales Ulta re-routes back to its standalone footprint will register as incremental to its comparable store sales.
Hutchinson said recapturing a portion of the beauty spending that previously flowed through Ulta Beauty’s Target shop-in-shop locations could add 100 to 315 basis points to annual revenue growth beginning in the third quarter of 2026.
BofA modeled three potential win-back scenarios:
20% Recapture: Adds $130 million in revenue (104.9 bp growth impact). 40% Recapture: Adds $260 million in revenue (209.8 bp growth impact). 60% Recapture: Adds $390 million in revenue (314.7 bp growth impact). The analyst said recaptured spending would be worth about three times more to Ulta in EBIT than the royalty stream it replaces. As a result, the company would need to recover roughly one-third of the lost gross merchandise value to maintain flat operating profit, with any additional recovery providing further upside.
Because recaptured sales leverage Ulta’s existing store footprint, BofA assumes they will convert at a 29% incremental operating margin.
Footprint Overlap and Digital Enhancements Support Win-BackUlta’s store proximity to Target locations strengthens its ability to convert former shop-in-shop shoppers into higher-value standalone store visitors.
Furthermore, ULTA’s ongoing investments in systems, loyalty data and speed — including Ship-from-Store in 1,000-plus locations and an Uber Eats partnership covering 1,500-plus stores — help mitigate competitive pressures from Amazon.
Target Assortment Shift Creates Competitive GapAs Target expands its Target Beauty Studio to 600 stores in August with a mass-to-prestige lineup, BofA notes that Ulta represented under 5% of Target’s $13 billion beauty business. The note concluded that Ulta shops likely “offered too much prestige product for the average Target customer,” positioning Ulta to recapture prestige-focused beauty consumers as the partnership ends.
ULTA Stock Price Activity: Ulta Beauty shares were up 1.40% at $508.54 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo: Gregory C Sanders / Shutterstock.com
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Ulta Beauty považuje mezinárodní expanzi za klíčový motor budoucího růstu a dál otevírá nové obchody v Mexiku, na Blízkém východě i prostřednictvím Space NK. Společnost očekává, že tyto nové aktivity přinesou postupný dodatečný růst.
Key Takeaways Ulta Beauty views international expansion as a key driver of future accretive growth.ULTA's Space NK continues to grow while expanding its customer base and market share.ULTA added stores in Mexico and the Middle East to strengthen its international footprint. Ulta Beauty, Inc. (ULTA - Free Report) expects to generate incremental accretive growth as it continues to scale its newer businesses, including its international expansion initiatives. These investments will play an important role in the company’s long-term growth strategy while supporting the continued expansion of its global business. Ulta Beauty further strengthened its international footprint by opening new stores across multiple overseas markets, reinforcing its commitment to expanding beyond the United States.
The company highlighted the continued strength of Space NK, its U.K. and Ireland business, which continues to deliver healthy and well-balanced growth. Space NK is expanding its loyal customer base while steadily gaining market share. Ulta Beauty believes this consistent performance reinforces the strength of its international operations and provides a solid foundation for broader global expansion over the long term.
Ulta Beauty also expanded its presence in Mexico by opening two new stores, including the Madero location, a distinctive two-story location that blends modern beauty retail with the historic architecture and character of central Mexico City. In addition, franchise partner Alshaya Group opened the company’s third Middle East location at Dubai Mall, further extending Ulta Beauty’s presence across international markets through continued store expansion. While the company acknowledged that conditions in the Middle East remain fluid, it remains optimistic about the long-term potential of its flagship location and broader opportunities in the region.
Overall, Ulta Beauty continues to pursue a disciplined long-term international expansion strategy as it invests in newer growth businesses. As the company continues to expand its international operations through Space NK, Mexico and the Middle East, management expects these newer businesses to contribute incremental accretive growth over time while supporting its long-term growth strategy.
The Zacks Rundown for ULTAThe company’s shares have lost 4.6% in the past year compared with the industry’s 13.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.06, higher than the industry’s average of 14.41. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.7% and 34.3%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company carries a Zacks Rank of 2 (Buy).
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
In the latest trading session, Ulta Beauty (ULTA - Free Report) closed at $452.49, marking a -1.92% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the beauty products retailer witnessed a loss of 1.23% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.64%, and the S&P 500's loss of 0.9%.
The investment community will be closely monitoring the performance of Ulta Beauty in its forthcoming earnings report. The company is expected to report EPS of $6.16, up 6.57% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.97 billion, indicating a 6.4% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $28.67 per share and a revenue of $13.21 billion, indicating changes of +11.82% and +6.61%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% upward. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ulta Beauty has a Forward P/E ratio of 16.09 right now. This signifies a premium in comparison to the average Forward P/E of 15.56 for its industry.
It's also important to note that ULTA currently trades at a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Miscellaneous was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
A month has gone by since the last earnings report for Ulta Beauty (ULTA - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ulta due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ulta Beauty Lifts FY26 View as Q1 Earnings Beat, Comps Rise 5.3%Ulta Beauty reported first-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company delivered double-digit sales and earnings growth, driven by broad-based strength across channels and product categories, along with contributions from the Space NK acquisition.
The beauty retailer reported first-quarter fiscal 2026 earnings per share of $7.74, beating the Zacks Consensus Estimate of $6.90. The bottom line increased 15.5% from the year-ago quarter’s reported figure of $6.70.
Net sales rose 11.1% year over year to $3,163.9 million and surpassed the Zacks Consensus Estimate of $3,113 million. Growth was primarily driven by higher comparable sales, contributions from the Space NK acquisition and sales from new stores. Comparable sales increased 5.3%, supported by a 3.7% rise in average ticket and a 1.6% jump in transactions.
ULTA’s Quarterly Results: Key Metrics & InsightsUlta Beauty’s gross profit increased 13.8% year over year to $1,267.6 million. Gross margin expanded 100 basis points to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. Improvements in inventory productivity and favorable category mix also aided profitability.
Selling, general and administrative (SG&A) expenses increased 14.6% to $814.7 million from $710.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses rose to 25.8% from 24.9%. The increase was primarily due to the acquisition of Space NK, strategic enterprise investments and higher store-related expenses, partially offset by leverage in advertising expenses.
Operating income surged 11.6% to $448.3 million from $401.8 million in the year-ago quarter. As a percentage of net sales, operating income improved slightly to 14.2% from 14.1% in the prior-year period.
ULTA’s Category Performance Remains Broad-BasedPerformance was broad-based across all major categories in the quarter. Fragrance remained the strongest category, delivering high-teens comparable sales growth, driven by newness from luxury brands such as YSL, Carolina Herrera, Valentino and Balmain, as well as innovation from exclusive fragrance brand NOYZ.
Haircare generated high-single-digit comparable growth, supported by strength in prestige haircare, new and exclusive brands, and healthy demand for hair-treatment products.
Makeup posted low-single-digit comparable sales growth, aided by prestige makeup performance and the successful launch of Rare Beauty. Skincare and wellness delivered low-single-digit comparable growth, benefiting from prestige skincare, mass skincare and continued momentum in supplements and self-care products. Services revenues increased in the mid-single-digit range, supported by strong member engagement.
Ulta Beauty’s Strategic Initiatives Gain TractionUlta Beauty continued to advance its “Ulta Beauty Unleashed” strategy during the quarter. The company launched TikTok Shop, positioning itself as a key beauty discovery platform and strengthening engagement with younger consumers. Ulta Beauty also added more than 20 new brands during the quarter, expanded its marketplace assortment to more than 325 brands and 8,000 SKUs and grew its loyalty program to approximately 46.9 million members, up 4% year over year.
The company continued expanding its international presence through Space NK, Mexico and the Middle East. Management also announced plans for a highly experiential flagship location in Times Square, NY, which is expected to open in late 2027.
ULTA’s Financial Health Snapshot & Store UpdateThe company ended the quarter with cash and cash equivalents of $166.3 million and short-term investments of $55 million. Merchandise inventories increased 12.5% year over year to $2.4 billion. Short-term debt totaled $144.9 million, while stockholders’ equity stood at $2.58 billion at quarter-end.
Net cash provided by operating activities was $261.9 million in the first quarter. Capital expenditures totaled $58.3 million, primarily related to investments in new and existing stores.
During the quarter, Ulta Beauty repurchased 958,323 shares of its common stock for $555 million. As of May 2, 2026, approximately $1.3 billion was available under the company’s $3 billion share buyback authorization announced in October 2024.
Ulta Beauty opened 16 net new stores in the United States and one net new Space NK store during the quarter. The company ended the period with 1,521 Ulta Beauty stores and 87 Space NK stores.
What to Expect From ULTA in FY26?Following its better-than-expected first-quarter performance, Ulta Beauty updated its fiscal 2026 outlook.
The company continues to expect net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%. Management now anticipates operating income growth of 6.5% to 9% compared with its previous expectation of 6% to 9%.
Ulta Beauty raised its fiscal 2026 earnings per share guidance to the range of $28.36-$28.80 from the prior range of $28.05-$28.55.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.
VGM ScoresAt this time, Ulta has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ulta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerUlta is part of the Zacks Retail - Miscellaneous industry. Over the past month, Bath & Body Works (BBWI - Free Report) , a stock from the same industry, has gained 24.1%. The company reported its results for the quarter ended April 2026 more than a month ago.
Bath & Body Works reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of -3.2%. EPS of $0.32 for the same period compares with $0.49 a year ago.
For the current quarter, Bath & Body Works is expected to post earnings of $0.23 per share, indicating a change of -37.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bath & Body Works. Also, the stock has a VGM Score of A.
Key Takeaways Ulta Beauty grew its Rewards program to nearly 47 million members, up 4% year over year.ULTA launched Ulta AI to improve product discovery, personalization and the shopping experience.ULTA uses loyalty data to tailor offers, anticipate replenishment and improve cart conversion. Ulta Beauty, Inc. (ULTA - Free Report) continued to strengthen its personalization strategy through its Ulta Beauty Rewards loyalty program, which expanded to nearly 47 million members, representing 4% year-over-year growth in the first quarter of fiscal 2026. By leveraging customer data and insights, the company aims to deliver a more personalized shopping experience, improve customer engagement and strengthen loyalty through more relevant interactions across its retail and digital channels.
To further deepen customer engagement, the company continues to expand the use of artificial intelligence across its customer experience initiatives. During the quarter, it introduced Ulta AI, an online shopping agent designed to enhance product discovery, personalization and the overall shopping journey. Management indicated that initial customer response has been encouraging, reflecting the potential of the new feature to improve engagement. By integrating AI into the shopping experience, the company aims to deliver more personalized interactions while strengthening its digital capabilities and enhancing the overall customer experience.
The company is using loyalty data to better understand customer behavior, anticipate replenishment purchases and improve cart conversion, further enhancing the effectiveness of its personalized customer engagement strategy. By combining artificial intelligence with its rich first-party data from loyalty members, the company aims to tailor communications and promotional offers based on individual customer preferences.
This personalized approach enables the company to deliver different types of incentives, such as gifts with purchase, value-focused offers, percentage discounts or price-point promotions, to better match each customer's needs and shopping behavior.
Ulta Beauty is evolving its customer relationships from transactional interactions to individualized experiences. As these capabilities improve, Ulta Beauty aims to make shopping more personalized and strengthen customer engagement.
The Zacks Rundown for ULTAThe company’s shares have lost 3% in the past year compared with the industry’s 7.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 10.43, lower than the industry’s average of 14.74. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.7% and 34.3%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company carries a Zacks Rank of 2 (Buy).
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
Ulta Beauty varuje před tlakem inflace, vyššími cenami pohonných hmot a konkurencí ve fiskálním roce 2026. V 1. čtvrtletí tržby vzrostly o 11,1 % a srovnatelné tržby o 5,3 %.
Key Takeaways Ulta Beauty cites inflation, fuel costs and competition as key headwinds for fiscal 2026.ULTA delivered 11.1% sales growth and 5.3% comparable sales growth in the first quarter.ULTA expands loyalty, AI capabilities and international stores to deepen customer engagement. Ulta Beauty, Inc.’s (ULTA - Free Report) shares have plunged 24.5% in the past six months, underperforming the Zacks industry’s decline of 18.1%. The stock has also underperformed the broader sector’s 3.3% decline and the S&P 500 Index’s 7.7% increase in the same period.
Image Source: Zacks Investment Research
During the same period, Ulta Beauty has trailed the performance of Sally Beauty Holdings, Inc. (SBH - Free Report) , The Estee Lauder Companies Inc. (EL - Free Report) and Interparfums, Inc. (IPAR - Free Report) . Shares of EL and SBH have plunged 22% and 12.1%, respectively, in the past six months, while shares of IPAR have risen 16.6%.
Image Source: Zacks Investment Research
ULTA Stock Falls on Macro Threats & Moderating GrowthUlta Beauty faces several near-term headwinds stemming from a challenging macroeconomic environment, rising competitive intensity and increasingly difficult year-over-year comparisons. At its first-quarter fiscal 2026 earnings call, management noted that the operating environment remains pressured by economic uncertainty, persistent inflation and higher fuel prices. These factors are making value a more important consideration for consumers when making purchasing decisions. At the same time, elevated fuel costs have pushed transportation expenses higher, highlighting the impact of broader economic conditions on the business.
SG&A expenses rose 14.6% year over year to $815 million in the first quarter, adding further strain to the company’s cost structure. The increase was largely due to the ongoing investments supporting the Ulta Beauty Unleashed strategy and spending initiatives implemented during the second half of fiscal 2025 that have not yet completed one year. As a result, the company continues to face elevated operating costs and challenging expense comparisons.
In addition, Ulta Beauty operates in a highly competitive market where rivals are expected to intensify efforts to capture market share. This dynamic is likely to increase execution pressure and require the company to perform at a higher level to protect its competitive position and sustain performance throughout the remainder of the year.
Per the last earnings call, management expects growth trends to moderate in the back half of the year as the company laps a period of stronger prior-year performance. This tougher comparison base is likely to create a more challenging growth environment and could slow the pace of expansion relative to earlier periods.
ULTA Drives Growth Through Loyalty, AI and Global ExpansionDespite these near-term challenges, Ulta Beauty continues to benefit from several long-term growth drivers that support customer engagement, market share gains and profitable growth. The company’s growth is supported by its differentiated beauty ecosystem, which combines a broad mass-to-luxury assortment, omnichannel convenience, strong brand partnerships and a large loyalty base. These strengths help the company attract a wide range of beauty consumers, support market share gains in prestige beauty and reinforce its position in mass beauty.
A major driver is the Ulta Beauty Rewards program, which has expanded to nearly 47 million members. This large first-party database enables more personalized marketing, better product recommendations and improved customer engagement across stores, digital channels and the app. As personalization becomes more important in beauty retail, Ulta Beauty’s loyalty platform remains a key competitive advantage.
Ulta Beauty is also strengthening growth through digital and social commerce. Investments in e-commerce, same-day delivery, buy-online-pickup-in-store and emerging platforms such as TikTok Shop allow the company to meet customers where they discover and purchase beauty products. Events like Ulta Beauty World further support brand awareness, social engagement and customer acquisition, particularly among younger consumers.
International expansion provides another long-term growth avenue. Space NK continues to build momentum in the U.K. and Ireland, while Ulta Beauty is expanding in Mexico and the Middle East through new stores and partnerships. These markets offer opportunities to extend brand reach and diversify growth beyond the United States.
Artificial intelligence is also becoming an important enabler. Ulta AI is designed to improve discovery, personalization and the online shopping journey, while broader AI and automation initiatives can enhance operational efficiency over time.
How Have Estimates Shaped Up for ULTA?The Zacks Consensus Estimate for ULTA’s current quarter earnings per share has remained unchanged at $6.16, and the current year earnings per share have improved by 1 cent to $28.67 per share in the past seven days. This reflects steady analyst confidence in Ulta Beauty's earnings outlook.
Image Source: Zacks Investment Research
Ulta Beauty’s Valuation PictureUlta Beauty is currently trading at a forward 12-month P/E multiple of 15.31, slightly above the industry average of 14.71 but well below the S&P 500 multiple of 21.32. The stock is also trading below its 12-month median P/E of 20.25.
ULTA’s current valuation suggests investors remain cautious about near-term growth prospects, while still assigning the stock a modest premium for its market position and long-term growth potential.
Image Source: Zacks Investment Research
How to Play ULTA Stock?Ulta Beauty is navigating a period of heightened macroeconomic uncertainty and competitive pressure, which may temper near-term performance. However, the company continues to benefit from a differentiated business model built around a strong loyalty ecosystem, omnichannel capabilities, exclusive brand partnerships and expanding digital engagement. Ongoing investments in personalization, artificial intelligence and international expansion provide additional avenues for long-term growth. Given the balance between near-term headwinds and long-term growth opportunities, investors may prefer to remain on the sidelines until there is greater visibility into the pace of growth and margin trends.
At present, ULTA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
