Ulta Beauty (ULTA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this beauty products retailer have returned +15.7%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Retail - Miscellaneous industry, which Ulta falls in, has gained 8.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Ulta is expected to post earnings of $5.60 per share for the current quarter, representing a year-over-year change of +9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
For the current fiscal year, the consensus earnings estimate of $28.95 points to a change of +12.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $32.22 indicates a change of +11.3% from what Ulta is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Ulta.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Ulta, the consensus sales estimate for the current quarter of $2.99 billion indicates a year-over-year change of +4.5%. For the current and next fiscal years, $13.27 billion and $13.97 billion estimates indicate +7.1% and +5.3% changes, respectively.
Last Reported Results and Surprise HistoryUlta reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $6.55 for the same period compares with $5.78 a year ago.
Compared to the Zacks Consensus Estimate of $2.97 billion, the reported revenues represent a surprise of +2.1%. The EPS surprise was +5.48%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Ulta is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ulta. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Ulta Beauty (ULTA - Free Report) closed at $603.21, marking a +1.96% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Prior to today's trading, shares of the beauty products retailer had gained 6.05% outpaced the Retail-Wholesale sector's gain of 4.46% and the S&P 500's gain of 0.67%.
Analysts and investors alike will be keeping a close eye on the performance of Ulta Beauty in its upcoming earnings disclosure. The company is forecasted to report an EPS of $5.6, showcasing a 8.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.99 billion, reflecting a 4.54% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $28.95 per share and a revenue of $13.27 billion, demonstrating changes of +12.91% and +7.06%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ulta Beauty. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Ulta Beauty is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Ulta Beauty is currently being traded at a Forward P/E ratio of 20.44. This indicates a premium in contrast to its industry's Forward P/E of 15.69.
We can also see that ULTA currently has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 1.77.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. In 2017, Ulta Beauty became the successor and parent company of Ulta Salon, Cosmetics & Fragrance, Inc. following a holding-company reorganization.
On March 25, 2020, ULTA was added to the Focus List at $177.59 per share. Shares have increased 233.14% to $591.7 since then, and the company is a #3 (Hold) on the Zacks Rank.
For fiscal 2027, 13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $28.95. ULTA boasts an average earnings surprise of 7.6%.
Additionally, ULTA's earnings are expected to grow 12.9% for the current fiscal year.
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BOLINGBROOK, Ill.--(BUSINESS WIRE)--The Ulta Beauty Charitable Foundation (UBCF), a 501(c)(3) affiliated with the nation's largest beauty retailer, is celebrating 10 years of community impact as it continues advancing its mission of empowering women and teens by helping them unleash their unique possibilities across all dimensions of their lives. The foundation approaches well-being holistically, focusing on three pillars that support healthy minds, bodies and communities. It works closely with.
Ulta Beauty (ULTA - Free Report) ended the recent trading session at $578.87, demonstrating a +2.01% change from the preceding day's closing price. This change outpaced the S&P 500's 0.02% loss on the day. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.15%.
The stock of beauty products retailer has risen by 3.43% in the past month, leading the Retail-Wholesale sector's gain of 0.63% and the S&P 500's gain of 2.05%.
Analysts and investors alike will be keeping a close eye on the performance of Ulta Beauty in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $5.6, reflecting a 8.95% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.99 billion, up 4.54% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $28.95 per share and revenue of $13.27 billion, indicating changes of +12.91% and +7.06%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. At present, Ulta Beauty boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Ulta Beauty is currently exchanging hands at a Forward P/E ratio of 19.6. This signifies a premium in comparison to the average Forward P/E of 14.95 for its industry.
One should further note that ULTA currently holds a PEG ratio of 1.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Miscellaneous was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. In 2017, Ulta Beauty became the successor and parent company of Ulta Salon, Cosmetics & Fragrance, Inc. following a holding-company reorganization.
On March 25, 2020, ULTA was added to the Focus List at $177.59 per share. Shares have increased 217.7% to $564.21 since then, and the company is a #3 (Hold) on the Zacks Rank.
For fiscal 2027, 12 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $28.95. ULTA boasts an average earnings surprise of 7.6%.
Additionally, ULTA's earnings are expected to grow 12.9% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Key Takeaways Ulta Beauty gained 20.7% in three months as Q2 sales and earnings rose and full-year guidance increased. ULTA's Q2 comparable sales rose 3.8%, driven by a 3.9% higher average ticket as transactions stayed flat. Ulta Beauty trades at 17.6X forward earnings, above its sub-industry's 14.3X, as traffic remains a risk. Ulta Beauty, Inc. (ULTA - Free Report) shares have gained 20.7% in the past three months as the beauty retailer’s operating picture has improved. Second-quarter fiscal 2026 sales and earnings rose, and management raised its full-year outlook after the stronger first half.
The advance now puts more weight on execution. Better results, digital growth and new business initiatives support the setup, but traffic, promotions, margins and valuation leave less room for a stumble.
Ulta Beauty’s 20.7% Gain Reflects a Stronger SetupULTA’s three-month gain has coincided with better operating momentum. Second-quarter net sales increased 8.9% to $3.04 billion, while earnings rose 13.3% to $6.55 per share.
Management also raised fiscal 2026 guidance. It now expects net sales growth of 6.7%-7.2%, comparable sales growth of 3.2%-3.7% and earnings of $28.70-$29.00 per share.
Image Source: Zacks Investment Research
ULTA’s Q2 Beat Adds Fundamental SupportSecond-quarter earnings of $6.55 per share topped the Zacks Consensus Estimate of $6.21. Sales of $3.04 billion also came in above the $2.97 billion consensus mark.
Comparable sales rose 3.8%. Average ticket increased 3.9%, while transactions were roughly flat, showing that spending per visit rather than traffic did most of the work.
Ulta Beauty’s Growth Engines Back the MomentumE-commerce sales grew at a high-teens rate, extending the company’s run of double-digit digital growth. Ulta Beauty also has about 47 million active loyalty members, while Marketplace now includes more than 450 brands and UB Media delivered double-digit growth.
The store base remains another growth lever. Management sees room for more than 1,800 freestanding U.S. locations versus 1,534 at the end of the second quarter. e.l.f. Beauty (ELF - Free Report) , which reported 36% sales growth in its latest quarter, also shows that beauty demand remains active across retailer and e-commerce channels.
ULTA’s Valuation Raises the Bar for More UpsideULTA trades at 17.6X forward 12-month earnings. That is above the 14.3X Zacks sub-industry multiple but below the stock’s five-year median of 18.5X.
Image Source: Zacks Investment Research
The valuation is not extreme relative to Ulta Beauty’s own history, but the recent rally leaves less tolerance for weaker execution. Stronger earnings and sales trends can help support the multiple, while a slowdown could make the premium to the sub-industry harder to defend.
Ulta Beauty Still Faces Traffic and Margin RisksTraffic remains the clearest near-term constraint. Transactions were roughly flat in the second quarter, promotional activity increased and category trends were uneven, with fragrance strong while makeup was approximately flat.
Management expects gross margin to remain roughly flat for fiscal 2026 and operating margin to improve by no more than 20 basis points. Sally Beauty Holdings, Inc. (SBH - Free Report) sells and distributes professional beauty supplies through Sally Beauty and Beauty Systems Group, keeping competition broad across hair color and hair care.
ULTA’s Mixed Signals Temper the Rally CaseUlta Beauty’s improved results and higher guidance support the recent advance, but continued gains likely require better traffic and steady execution as comparisons become tougher. Ticket growth alone may not be enough if promotions rise or category strength narrows.
The stock currently carries a Zacks Rank #3 (Hold), with a Growth Score of B, Value Score of C, Momentum Score of D and VGM Score of C. The Growth Score fits a firmer earnings backdrop, including a 0.1% increase in the current-year EPS estimate over the past four weeks. The weaker Momentum Score and middling Value and VGM Scores leave a more balanced signal after the three-month run. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Ulta Beauty projects fiscal 2026 EPS of $28.70-$29.00, with operating income growth of 8.3%-9.3%. ULTA trades at 17.6X forward earnings, above its sub-industry but below its five-year median of 18.5%. Ulta Beauty's Q2 comparable sales rose 3.8%, led by a 3.9% higher ticket as transactions stayed flat. Ulta Beauty, Inc. (ULTA - Free Report) is entering the second half of fiscal 2026 with a stronger earnings outlook, high returns on invested capital and several expanding growth platforms. The question for investors is whether that growth quality is enough to justify the stock’s current valuation while traffic remains subdued and competition becomes more promotional.
The shares are not obviously cheap, but they are not trading at a demanding premium to their own history either. That makes execution the key variable: Ulta Beauty needs to convert sales growth into durable earnings gains while sustaining traffic, margins and cash generation.
Ulta Beauty’s Growth Profile Supports the Bull CaseManagement raised fiscal 2026 expectations after the first half. Ulta Beauty now projects net sales growth of 6.7%-7.2%, comparable-sales growth of 3.2%-3.7% and operating income growth of 8.3%-9.3%. Earnings are expected to reach $28.70-$29.00 per share.
The Zacks data also point to a firmer growth profile. Projected EPS growth for the current fiscal year is 12.9%, while projected sales growth is 7.1%. Those figures support the idea that earnings can outpace revenues as the company benefits from scale, productivity and share repurchases.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Growth is not tied to a single channel. Ulta Beauty continues to expand e-commerce, loyalty, Marketplace, UB Media, domestic stores and international operations. That breadth gives the company more ways to sustain revenue growth even if one category or channel slows.
ULTA’s Valuation Is Reasonable but Not CheapULTA trades at 17.6X forward 12-month earnings. That sits above the 14.3X Zacks sub-industry multiple, but below the 20.9X Zacks Retail-Wholesale sector multiple and Ulta Beauty’s five-year median of 18.5X.
Image Source: Zacks Investment Research
Beauty-sector comparisons reinforce that middle-ground view. e.l.f. Beauty, Inc. (ELF - Free Report) trades at 27.2X forward 12-month earnings and carries projected sales growth of 20.2%, reflecting a richer multiple alongside a faster growth profile. Sally Beauty Holdings, Inc. (SBH - Free Report) , by contrast, trades at roughly 7.3X forward 12-month earnings as its top-line growth remains much more modest. The business mixes differ, but the spread helps frame Ulta Beauty’s valuation as neither a deep-value case nor a high-growth premium multiple.
The positioning creates a valuation debate rather than a clear bargain case. The stock commands a premium to its sub-industry, which requires continued operating execution, yet the multiple remains below Ulta Beauty’s own longer-term median and the broader sector.
That middle ground means the valuation can be supported if earnings growth remains near current expectations. A traffic slowdown, heavier discounting or weaker category trends could make the premium to the sub-industry harder to justify.
Ulta Beauty’s Cash Returns Add Financial FlexibilityUlta Beauty continues to generate attractive returns on capital. Trailing 12-month return on invested capital stands at 24.7%, close to the company’s 10-year median of 25% and well above the 12.9% industry median cited in the Zacks report.
Recent cash realization is also strong. TTM cash-flow conversion is 129.7%, versus the company median of 59.8%, while free-cash-flow conversion is 95.1%, compared with a 36.9% median. In the first half of fiscal 2026, operating cash flow reached $381.6 million and capital expenditures were $139.5 million.
These measures give Ulta Beauty flexibility to fund new stores, digital capabilities and other strategic investments while returning capital to shareholders. Still, the current conversion rates are well above historical norms, so working-capital needs, higher spending or margin pressure could pull them lower.
ULTA Still Faces Promotion and Consumer RisksThe operating backdrop is not uniformly favorable. Management said the overall promotional environment increased in the second quarter and that Ulta Beauty was somewhat more promotional year over year. Consumers are also becoming more selective as value plays a larger role in purchase decisions.
Second-quarter comparable sales rose 3.8%, but the gain was driven mainly by a 3.9% increase in average ticket while transactions were roughly flat. That leaves traffic as an important watch point as the company enters tougher comparisons in the second half.
Category performance was mixed. Fragrance delivered high-teens comparable growth and haircare posted high-single-digit growth, while makeup was approximately flat. Skincare and wellness declined modestly as weakness in body care offset growth elsewhere in the category. Continued dependence on a few stronger categories could make broad-based growth harder to sustain if those areas cool.
Ulta Beauty’s Margin Outlook Limits the Re-Rating CaseUlta Beauty expects fiscal 2026 gross margin to remain roughly flat. Management sees an opportunity for operating margin to improve by up to 20 basis points, but that still points to modest margin expansion rather than a sharp step-up in profitability.
Mix pressure from Space NK, competitive promotions, fuel costs and ongoing investments remain constraints. Productivity and SG&A leverage can help offset those pressures, but the current outlook suggests that most earnings growth will need to come from sales gains, expense discipline and capital allocation rather than a major margin reset.
That matters for valuation. A sustained re-rating would be easier to support if revenue growth were accompanied by a clearer margin expansion story. For now, the margin outlook argues for a more measured interpretation of the earnings acceleration.
Ulta Beauty’s Signals Favor Patience Over CertaintyUlta Beauty currently carries a Zacks Rank #3 (Hold). It also has a Growth Score of B, Value Score of C, Momentum Score of D and VGM Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth Score aligns with the raised fiscal 2026 outlook and double-digit projected EPS growth. The Value Score suggests the stock is not a standout bargain, while the Momentum Score points to a weaker short-term setup despite the company’s improving fundamentals. The VGM Score of C keeps the combined signal balanced.
Ulta Beauty’s growth quality, returns on capital and cash generation provide a credible foundation for the stock, but subdued traffic, promotional pressure and limited margin expansion prevent the case from becoming straightforward. With valuation sitting between its sub-industry and Ulta Beauty’s own historical median, the current setup favors patience and close monitoring of traffic, margins and earnings execution rather than assuming the recent improvement will automatically translate into a higher multiple.
Key Takeaways Ulta Beauty raised fiscal 2026 sales, comparable-sales and earnings guidance after a strong second quarter. E-commerce sales grew at a high-teens rate, marking ULTA's sixth straight quarter of double-digit growth. ULTA faces tougher comparisons, flat recent transactions and only modest expected margin improvement. Ulta Beauty, Inc. (ULTA - Free Report) raised its fiscal 2026 outlook after a better-than-expected second quarter, putting the focus on whether stronger digital growth, loyalty engagement and newer business platforms can sustain the improved earnings trajectory.
The operating update was encouraging, but the second half brings tougher comparisons, subdued recent transaction growth and only modest expected margin improvement. That leaves execution as the key test behind the higher full-year baseline.
Ulta Beauty’s Q2 Beat Sets a Higher 2026 BaselineUlta Beauty reported second-quarter fiscal 2026 earnings of $6.55 per share, up 13.3% year over year and above the Zacks Consensus Estimate of $6.21. Net sales increased 8.9% to $3.04 billion, also topping the consensus mark of $2.97 billion.
Comparable sales rose 3.8%, while operating income increased 10.1% to $379.6 million. Operating margin improved to 12.5% from 12.4% a year earlier, giving the company a stronger first-half base heading into the balance of the year.
ULTA’s Digital Momentum Broadens the Growth MixE-commerce remained a key contributor. Sales grew at a high-teens rate, marking Ulta Beauty’s sixth consecutive quarter of double-digit e-commerce growth.
The company’s store network is also supporting digital scale. More than 50% of e-commerce orders were fulfilled through more than 1,500 store locations, while the mobile app accounted for more than 60% of online sales.
That combination gives Ulta Beauty a broader omnichannel growth mix, with stores functioning as both selling locations and fulfillment nodes while digital engagement continues to deepen. e.l.f. Beauty, Inc. (ELF - Free Report) , which reported 36% sales growth in its latest quarter, provides another sign that beauty demand remains active across digital and brand-led channels, though its business model differs from Ulta Beauty’s retail platform.
Ulta Beauty’s Guidance Upgrade Lifts ExpectationsManagement raised fiscal 2026 guidance after the stronger first-half performance. Net sales growth is now expected at 6.7%-7.2%, up from the prior 6%-7% range.
Comparable-sales growth is projected at 3.2%-3.7% versus the earlier 2.5%-3.5% range, while operating-income growth is expected at 8.3%-9.3%, compared with 6.5%-9% previously.
The company also increased its earnings outlook to $28.70-$29.00 per share from $28.36-$28.80. The higher ranges establish a more demanding financial benchmark for the second half.
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ULTA’s Margin Outlook Keeps the Upside MeasuredThe guidance increase does not imply a major margin expansion story. Management still expects fiscal 2026 gross margin to remain roughly flat.
Space NK business mix, higher fuel costs and competitive requirements are among the factors weighing on gross-margin leverage. Ulta Beauty also retains promotional flexibility if competition or consumer demand requires a stronger value response.
Operating margin is expected to improve only modestly for the year, so the upgraded outlook still depends more on sales growth, expense discipline and execution than on a sharp increase in profitability.
Ulta Beauty’s Second-Half Test Gets TougherManagement expects second-half fiscal 2026 net sales growth of 4%-5%, comparable-sales growth of 2%-3% and operating-profit growth of 6%-8%. Those expectations reflect tougher comparisons after a stronger first half.
Traffic remains another key variable. Second-quarter comparable-sales growth was driven mainly by a 3.9% increase in average ticket, while transactions were roughly flat.
Peer results show why traffic and category execution remain important. Sally Beauty Holdings, Inc. (SBH - Free Report) posted only 0.2% consolidated sales growth in its latest reported quarter, with comparable sales flat and Beauty Systems Group comparable sales down 2.1%. The businesses are not directly comparable, but SBH’s softer demand profile illustrates how uneven beauty spending can be across channels and categories.
Delivering the higher full-year outlook will therefore require Ulta Beauty to sustain ticket strength while improving or at least stabilizing traffic, managing promotions and navigating more difficult year-over-year comparisons.
ULTA’s Growth Score Leads a Mixed Signal SetUlta Beauty currently carries a Zacks Rank #3 (Hold). It also has a Growth Score of B, Value Score of C, Momentum Score of D and VGM Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth Score is consistent with the raised fiscal 2026 guidance and stronger earnings momentum. The broader Style Score mix is more measured, with the Value and VGM readings in the middle and the Momentum Score weaker.
The operating update raises expectations, but the stock’s signal set still points to a balanced setup. Continued e-commerce strength and execution against the upgraded outlook would support the growth case, while traffic, promotions and margin constraints remain the main second-half tests.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ULTA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
QRG Capital Management Inc. lowered its stake in shares of Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) by 51.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,391 shares of the specialty retailer’s stock after selling 3,622 shares during the quarter. QRG Capital Management Inc.’s holdings in Ulta Beauty were worth $1,529,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Root Financial Partners LLC raised its holdings in shares of Ulta Beauty by 12.1% in the first quarter. Root Financial Partners LLC now owns 167 shares of the specialty retailer’s stock worth $87,000 after buying an additional 18 shares during the last quarter. Nicollet Investment Management Inc. grew its holdings in shares of Ulta Beauty by 0.7% during the fourth quarter. Nicollet Investment Management Inc. now owns 3,187 shares of the specialty retailer’s stock valued at $1,928,000 after buying an additional 22 shares during the last quarter. Concurrent Investment Advisors LLC increased its position in shares of Ulta Beauty by 0.6% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 3,583 shares of the specialty retailer’s stock valued at $1,616,000 after acquiring an additional 23 shares during the period. SJS Investment Consulting Inc. increased its position in shares of Ulta Beauty by 22.6% in the 1st quarter. SJS Investment Consulting Inc. now owns 130 shares of the specialty retailer’s stock valued at $68,000 after acquiring an additional 24 shares during the period. Finally, Venturi Wealth Management LLC raised its stake in Ulta Beauty by 3.2% in the 1st quarter. Venturi Wealth Management LLC now owns 809 shares of the specialty retailer’s stock worth $423,000 after acquiring an additional 25 shares during the last quarter. 90.39% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets ULTA has been the subject of a number of research reports. Sanford C. Bernstein raised Ulta Beauty to an “outperform” rating in a research report on Tuesday, September 15th. JPMorgan Chase & Co. cut their price objective on Ulta Beauty from $750.00 to $631.00 and set an “overweight” rating on the stock in a report on Wednesday, June 3rd. Argus set a $550.00 target price on Ulta Beauty in a report on Thursday, June 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ulta Beauty in a report on Monday, August 31st. Finally, Guggenheim initiated coverage on Ulta Beauty in a research report on Tuesday, September 15th. They issued a “buy” rating on the stock. Twenty-four investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $627.83.
Check Out Our Latest Stock Report on ULTA Insider Buying and Selling at Ulta Beauty In related news, CEO Kecia Steelman sold 2,000 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $545.88, for a total transaction of $1,091,760.00. Following the sale, the chief executive officer owned 40,489 shares in the company, valued at approximately $22,102,135.32. This trade represents a 4.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Lorna Nagler sold 600 shares of the company’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $537.31, for a total transaction of $322,386.00. Following the completion of the transaction, the director owned 7,168 shares of the company’s stock, valued at approximately $3,851,438.08. This trade represents a 7.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.20% of the company’s stock.
Ulta Beauty Stock Performance NASDAQ ULTA opened at $545.20 on Monday. The firm has a market capitalization of $23.31 billion, a P/E ratio of 19.87, a PEG ratio of 1.63 and a beta of 0.85. The stock has a 50-day simple moving average of $530.13 and a two-hundred day simple moving average of $515.38. Ulta Beauty Inc. has a fifty-two week low of $443.60 and a fifty-two week high of $714.97.
Ulta Beauty (NASDAQ:ULTA – Get Free Report) last issued its earnings results on Thursday, August 27th. The specialty retailer reported $6.55 EPS for the quarter, topping analysts’ consensus estimates of $6.22 by $0.33. Ulta Beauty had a return on equity of 45.40% and a net margin of 9.34%.The firm had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.99 billion. During the same quarter in the prior year, the business earned $5.78 earnings per share. The company’s revenue was up 8.9% compared to the same quarter last year. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. As a group, analysts forecast that Ulta Beauty Inc. will post 28.95 earnings per share for the current year.
Ulta Beauty Profile (Free Report)
Ulta Beauty, Inc is a specialty beauty retailer operating under the Ulta Beauty brand. The company sells a broad selection of cosmetics, skincare, haircare, fragrance, bath and body products, and beauty tools across a range of price points. Its merchandise includes both established brands and private-label products, as well as prestige, mass-market and professional beauty offerings.
In addition to retail sales, Ulta Beauty provides services through salon locations within many of its stores, including hair, skin and brow services.
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Investors with an interest in Retail - Miscellaneous stocks have likely encountered both Petco Health & Wellness (WOOF - Free Report) and Ulta Beauty (ULTA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Petco Health & Wellness and Ulta Beauty are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WOOF has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
WOOF currently has a forward P/E ratio of 9.96, while ULTA has a forward P/E of 19.14. We also note that WOOF has a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ULTA currently has a PEG ratio of 1.66.
Another notable valuation metric for WOOF is its P/B ratio of 0.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ULTA has a P/B of 8.96.
These metrics, and several others, help WOOF earn a Value grade of A, while ULTA has been given a Value grade of C.
WOOF sticks out from ULTA in both our Zacks Rank and Style Scores models, so value investors will likely feel that WOOF is the better option right now.
Kecia Steelman, President and CEO of Ulta Beauty, Inc.(ULTA -0.58%), sold 2,000 shares of common stock on Sept. 17, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$1.1 millionShares sold (direct)2,000.0Post-transaction shares (directly held)40,489.0Post-transaction value$22.02 millionTransaction value based on SEC Form 4 weighted average sale price ($545.88); post-transaction value based on Sept. 17, 2026, market close ($543.73).
Key questionsHow did the execution price compare to the market valuation?
The shares were sold at a weighted average price of $545.88 per share, representing a modest premium to the $543.73 market close on the transaction date of Sept. 17, 2026.What is the executive's remaining direct equity position?
Following the sale, Kecia Steelman retains 40,489.0 shares of common stock, which equates to an interest of 0.0942% in the specialty beauty retailer.Does the executive hold any other forms of equity exposure?
The reporting person also holds derivative securities that provide additional exposure to the firm beyond the reported direct common stock holdings.What financial and market context surrounded the transaction?
As of the Sept. 21, 2026, market close, Ulta Beauty shares were priced at $557.86, and the company reported trailing-twelve-month revenue of $13.0 billion.Company OverviewMetricValueShare Price (as of market close 2026-09-21)$557.86Market Capitalization$23.9 billionRevenue (TTM)$13.0 billionNet Income (TTM)$1.2 billionCompany SnapshotUlta Beauty operates a comprehensive beauty retail platform offering cosmetics, fragrances, skincare, haircare, bath and body products, and professional styling instruments alongside in-store salon services including hair, skin, makeup, brow, and nail treatments.The company generates revenue through multi-channel retail operations, combining physical store locations with salon services and proprietary private-label product lines that enhance its margin profile and customer loyalty.Ulta Beauty serves a broad consumer base of beauty enthusiasts and professionals seeking curated product assortments and professional salon services, positioning itself as a destination retailer for comprehensive beauty and personal care needs.Ulta Beauty operates as a leading specialty beauty retailer in the United States, with approximately 65,000 employees and a diversified business model integrating retail merchandise sales with professional salon services. The company's competitive positioning is reinforced by its extensive store network, curated multi-brand product selection, and integrated salon service capabilities that create a differentiated omnichannel beauty destination. With TTM revenue of $13.0 billion and net income of $1.2 billion, Ulta Beauty demonstrates substantial scale and operational profitability within the specialty retail sector.
What this transaction means for investorsThe reasoning behind CEO Kecia Steelman's sale of 2,000 Ulta Beauty shares is unknown to the public. Investors should remember that Form 4 filings typically do not reveal why an insider sells stock, and such transactions can happen for a variety of reasons.
Fortunately, this does not appear to be a move that should worry investors, primarily because it involved only around 5% of her holdings. Also, given the retail stock's performance since she became CEO in January 2025, she probably wants to stay invested in Ulta. During her tenure, the stock has risen by almost 30%.
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Its strategy as a one-stop shop for all things beauty has resonated with its customer base. In the first half of fiscal 2026 (ended Aug. 1), revenue rose by 10% yearly. Also, it earned about $622 million during that time, a 10% annual increase.
Admittedly, investors should not consider it a high-growth name at such levels. Still, considering its P/E ratio of 20, that should attract the slow and steady growth that should keep Steelman and other shareholders invested in Ulta Beauty stock.
Adagio Medical Highlights First Patient Treated in IDE Study Evaluating Next-Generation vCLAS™ Ultra System for Ventricular Tachycardia at Banner -- University Medical Center Phoenix Adagio Medical Holdings, Inc. (Nasdaq: ADGM) (“Adagio” or “the Company”), a leading innovator in catheter ablation technologies for the treatment of cardiac arrhythmias, today announced highlights from the first patient enrolled in the Company’s study evaluating its next-generation vCLAS™ Ultra Ultra-Low Temperature Ablation (“ULTA”) Ventricular Ablation System. The study is designed to support a Premarket Approval (“PMA”) supplement to the Company’s PMA for its first generation vCLAS system, which is presently under review by the to the U.S. Food and Drug Administration (“FDA”). The supplemental study is being conducted under the Company’s FDA-approved Investigational Device Exemption (“IDE”) designed to evaluate the safety and effectiveness of the vCLAS Ultra System for the treatment of Sustained Monomorphic Ventricular Tachycardia (“SMVT”).
The patient, who presented with non-ischemic cardiomyopathy and recurrent ventricular tachycardia following a recent prior catheter ablation, was successfully treated by Dr. Roderick Tung, MD, Director of Banner – University Medicine Heart Institute and Division Chief of Cardiology at the University of Arizona College of Medicine – Phoenix. The target site was a thick anatomic area directly under the mitral valve that typically presents significant challenges in catheter reach and lesion depth.
“Adagio’s next generation vCLAS Ultra device handled with the familiarity of traditional catheters while efficiently reaching an especially challenging anatomic location in the ventricle. The catheter reached a sub-valvular substrate just under the mitral valve annulus with ease from both transseptal and retrograde approaches. The maneuverability and contact were exactly what the anatomy required, and the patient continues to do well many weeks post-procedure,” said Dr. Tung. “We successfully treated the arrhythmogenic substrate with remarkably short ablation times, aided by the catheter’s large surface area and deep ablation footprint. These meaningful improvements in usability over the first generation vCLAS catheter, combined with what we have seen in safety and efficacy profiles of ULTA, have the potential to be game-changing as a solution across the large population of patients suffering from VT."
The vCLAS Ultra System is the next-generation evolution of Adagio’s proprietary ULTA technology and is intended to reduce ablation time and simplify the procedure while maintaining the established clinical capabilities of the ULTA platform for treatment of ventricular tachycardia (“VT”). The more maneuverable vCLAS Ultra system is designed to deliver single-freeze ablations at approximately -170°C with pre-clinical data demonstrating a potential 50-75% reduction in ablation time, which could reduce overall procedure time by 30 minutes or more compared to the first-generation system.
“This first patient that kicked off our clinical trial several weeks ago represented a significant milestone as we work with our physician partners to bring the next generation of ULTA technology through formal clinical evaluation. We are honored to have had Dr. Tung and his team at the forefront of this important step for Adagio,” said Todd Usen, Chief Executive Officer of Adagio Medical. “We have built the vCLAS Ultra on the foundation of the proven clinical profile of the ULTA platform, and we are now focused on demonstrating the potential of the next-generation system to deliver the same broad clinical capabilities with a faster and more efficient procedural workflow. We believe vCLAS Ultra has the potential to further establish ULTA as a foundational technology for VT ablation and to provide physicians with a single, purpose-built all-endocardial catheter capable of addressing the broad spectrum of VT patients encountered in clinical practice.”
About Adagio Medical Holdings, Inc.
Adagio is a medical device company focused on developing and commercializing products for the treatment of cardiac arrhythmias utilizing its novel, proprietary, catheter-based Ultra-Low temperature ablation (“ULTA”, formerly known as ULTC) technology. ULTA is designed to create large footprint, titratable lesions extending through the depth of both diseased and healthy cardiac tissue, all through an endocardial approach. The Company is currently focused on the treatment of ventricular arrhythmias with its purpose-built vCLAS Ventricular Ablation System, which is CE Marked, and in May 2026 the Company submitted the results of the FULCRUM-VT pivotal study to support its PMA application to the FDA for the vCLAS Ventricular Ablation System. The Company is also developing a next-generation vCLAS Ultra catheter, designed to support faster ablation procedures with a smaller and more flexible form factor than its predecessor vCLAS device.
About FULCRUM VT
FULCRUM-VT (Feasibility of Ultra-Low Temperature Cryoablation in Recurring Monomorphic Ventricular Tachycardia) is a prospective, multi-center, open-label, single-arm trial, which has fully enrolled 209 patients with structural heart disease of both ischemic and non-ischemic cardiomyopathy, indicated for catheter ablation of drug refractory VT in accordance with current treatment guidelines. FULCRUM-VT 6-month primary chronic effectiveness was defined as freedom from sustained monomorphic VT lasting longer than 30 seconds or VT requiring appropriate ICD device therapy, in the absence of new or increase in antiarrhythmic drug therapy beyond previously failed dose.
The FDA has granted Investigational Device Exemption (IDE) approval to expand the Company’s FULCRUM-VT trial to evaluate the safety and effectiveness of the Company’s next-generation vCLAS Ventricular Ablation System (ULTA) for the treatment of Sustained Monomorphic Ventricular Tachycardia (SMVT).
Adagio’s vCLAS™ Ventricular Tachycardia System is commercially available for the treatment of monomorphic VT in Europe and select other geographies but is limited to investigational use in the United States.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “projects,” “plans,” “potential,” “future” or similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements concerning: anticipated timing and outcome of the FDA’s review of the Company’s PMA application for the vCLAS Ventricular Ablation System; the potential for ULTA technology to address unmet needs in the treatment of VT, including across both ischemic and non-ischemic cardiomyopathy substrates; the potential clinical benefits of ULTA; the potential market opportunity for the vCLAS Ventricular Ablation System; and Adagio's research, development, regulatory and commercialization plans, including communications with the FDA. Forward-looking statements are based on management’s current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding Adagio’s business are described in detail in Adagio’s Securities and Exchange Commission (“SEC”) filings, including in its Annual Report on Form 10-K for the full-year ended December 31, 2025, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that Adagio makes from time to time with the SEC. These forward-looking statements speak only as of the date hereof, and Adagio disclaims any obligation to update these statements except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260916160758/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
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Stock to Watch: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. ULTA has a Momentum Style Score of B, and shares are up 11.2% over the past four weeks.
11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.18 to $28.94 per share. ULTA boasts an average earnings surprise of +7.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ULTA should be on investors' short list.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
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MarketBeat Week in Review – 08/31 - 09/04Ulta Beauty NASDAQ: ULTA executives said the company is seeing continued resilience in consumer beauty spending, supported by its broad price range, loyalty program, stores, services and investments in technology.
Speaking at a Barclays conference, President and Chief Executive Officer Kecia Steelman said Ulta has not seen a meaningful change in customer shopping behavior despite what she described as a dynamic macroeconomic environment. She said customers view beauty as both an affordable luxury and a form of self-care, while Ulta’s assortment spans entry-level through luxury price points.
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Ulta Beauty’s Earnings Beat Was Stronger Than the Stock’s ReactionSteelman pointed to the company’s second-quarter results, saying Ulta exceeded its prior guidance and raised its full-year outlook. Chief Financial Officer Chris DelOrefice added that average spending per loyalty member increased during the second quarter and that the company did not see material changes in demand across age groups or income cohorts.
Category trends and international growth Steelman said fragrance is among Ulta’s fastest-growing categories and contributed to higher average transaction value in the second quarter. The company has publicly stated its goal of becoming the No. 1 fragrance retailer in the U.S., she said. Fragrance is also attracting younger male shoppers, who are increasingly buying multiple scents and layering products rather than relying on a single signature fragrance.
3 Retail Stocks to Watch After a Big Consumer Earnings WeekIn skincare, Steelman said K-beauty remains an important opportunity. Ulta has been the No. 1 retailer of K-beauty for the past 18 months, according to Steelman, and exclusives accounted for 50% of the company’s K-beauty sales in the most recent quarter. She also said Ulta plans to add Proya, which she described as the leading C-beauty brand from China.
Makeup trends are shifting toward heavier glam looks and eye makeup, Steelman said, while haircare demand is expanding beyond shampoo and conditioner into scalp treatments and hair health. She said GLP-1 use is influencing both skincare and haircare needs.
Ulta continues to invest in Space NK in the United Kingdom, where Steelman said the business has previously reported strong double-digit comparable sales. She described the U.K. as the sixth-largest beauty market and said Space NK remains an important growth opportunity.
Target exit and competitive positioning Steelman said Ulta ended its Target partnership in mid-August and that prestige brands involved in the relationship returned to the Ulta ecosystem. She said the company has data on customers who shopped both Target and Ulta and is using marketing efforts to retain and regain those shoppers.
She acknowledged that the Target partnership initially cannibalized Ulta store sales, similar to the effect of a new competitor opening nearby. However, Steelman said Ulta expects an opportunity to recover those sales as prestige beauty products associated with the partnership are again available through Ulta.
The executive also emphasized Ulta’s positioning across mass and prestige beauty, describing the company as the only specialty beauty retailer serving customers from low-end to luxury price points. She said the company’s store associates, services and ability to create an experiential shopping environment are difficult advantages for competitors to replicate.
Loyalty, AI and profitability Steelman said Ulta’s loyalty program has 47 million members, with 95% of sales coming through members. The company’s investments in foundational systems and data governance are now supporting more targeted marketing and artificial-intelligence applications, she said. Ulta also uses its customer data to demonstrate returns for brand partners through its UB Media offering.
DelOrefice described a “flywheel” in which brands, exclusive products, customer engagement, loyalty data and higher customer spending reinforce one another. He said the company’s strategy begins with healthy top-line growth and is intended to support double-digit earnings-per-share growth over time.
On margins, DelOrefice said Ulta plans to maintain financial discipline while continuing to invest in growth initiatives. He said the company expects selling, general and administrative expenses to grow slightly below sales, helping produce modest operating-margin improvement. He also said the company has moved beyond the concept of a 12% operating-margin floor, noting that it is already above that level and expanding margin this year.
After supporting capital expenditures and organic growth investments, Ulta is prioritizing share repurchases, DelOrefice said. The company increased its planned buybacks to $1.5 billion and later to $1.8 billion for the year, he said.
Wellness and future expansion Steelman identified wellness as a major long-term opportunity. She said wellness is a $400 billion category that is currently growing faster than beauty, and that 95% of Ulta guests are already shopping wellness products. Ulta has focused its wellness assortment on supplements and nutrition, rest and renew, intimate care, and everyday essentials.
The company has opened several wellness shops and is using early learnings to refine the concept. Steelman said wellness could become Ulta’s next billion-dollar category. Additional growth avenues include its marketplace, TikTok Shop engagement, international expansion and products for men, she said.
Steelman said investors may underestimate the continuing relevance of physical stores. Stores account for 80% of Ulta sales, while online represents 20%, she said. Additionally, 75% of loyalty members shop exclusively in stores, 20% shop across channels and 5% shop only online.
She added that only 15% to 20% of member sales are replenishment purchases, with the remainder coming from products customers have not previously purchased, including new items, categories and innovations.
About Ulta Beauty (NASDAQ:ULTA)Ulta Beauty, Inc is a specialty beauty retailer operating under the Ulta Beauty brand. The company sells a broad selection of cosmetics, skincare, haircare, fragrance, bath and body products, and beauty tools across a range of price points. Its merchandise includes both established brands and private-label products, as well as prestige, mass-market and professional beauty offerings.
In addition to retail sales, Ulta Beauty provides services through salon locations within many of its stores, including hair, skin and brow services.
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Adrienne Yih-Tennant
Barclays Bank PLC, Research Division
Okay. Great. Thank you very much. Good morning, everybody, and thank you for joining us. I'm Adrienne Yih, Barclays specialty retail apparel and footwear analyst. And it is my pleasure to welcome Kecia Steelman, President and Chief Executive Officer of Ulta Beauty; and Chris DelOrefice, Chief Financial Officer.
So I'd like to give a little bit of background on the management before we start for those who aren't as familiar with the company. Kecia joined Ulta Beauty in 2014 and has held leadership roles spanning store operations, merchandising, enterprise strategy, including Chief Store Operations Officer, Chief Operating Officer and President before being named President and CEO in January of 2025, a very well-deserved recognition. Prior to Ulta Beauty, she also held leadership positions at Family Dollar, Home Depot and Target.
Chris is a newcomer, right? So Chris joined Ulta Beauty as the CFO in December of 2025. And prior to that, he served as EVP and CFO of Becton Dickinson and previously to that, more than 2 decades at Johnson & Johnson in a variety of senior client leadership roles. I think what we've really been impressed so far having known you is the amount of rigor that from your kind of CPG background that you're now bringing and overlaying to the retail landscape here. So we thank you for all that work there.
What makes the story particularly interesting today is entering a period where years of investment in loyalty, digital capabilities, stores, services and technology are now beginning
Ulta Beauty beat earnings estimates and raised guidance, but I maintain a neutral rating due to underlying concerns. ULTA's largest revenue segments—cosmetics and skincare & wellness—showed flat or declining performance, with overall comps growth barely above inflation. Comps growth is driven by e-commerce, while ongoing physical store expansion raises cost concerns and questions about long-term profitability.
California State Teachers Retirement System increased its holdings in shares of Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) by 43,592.1% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 29,433,210 shares of the specialty retailer’s stock after buying an additional 29,365,845 shares during the quarter. California State Teachers Retirement System owned 68.47% of Ulta Beauty worth $13,273,789,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds also recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of Ulta Beauty during the second quarter worth about $1,815,712,000. State Street Corp raised its position in shares of Ulta Beauty by 2.5% in the 4th quarter. State Street Corp now owns 2,025,565 shares of the specialty retailer’s stock valued at $1,225,487,000 after purchasing an additional 50,305 shares during the last quarter. Diamant Asset Management Inc. boosted its stake in Ulta Beauty by 52,171.0% in the 1st quarter. Diamant Asset Management Inc. now owns 1,474,042 shares of the specialty retailer’s stock worth $77,050,000 after purchasing an additional 1,471,222 shares in the last quarter. Geode Capital Management LLC grew its position in Ulta Beauty by 1.8% during the 4th 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 last quarter. Finally, T. Rowe Price Investment Management Inc. grew its position in Ulta Beauty by 0.3% during 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 purchasing an additional 2,463 shares during the last quarter. 90.39% of the stock is owned by institutional investors and hedge funds.
Insider Activity at Ulta Beauty In other news, Director George R. Mrkonic, Jr. sold 383 shares of Ulta Beauty stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $475.84, for a total transaction of $182,246.72. Following the completion of the transaction, the director directly owned 2,404 shares of the company’s stock, valued at $1,143,919.36. The trade was a 13.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.20% of the stock is owned by insiders.
Analyst Upgrades and Downgrades A number of research analysts have issued reports on ULTA shares. Citigroup raised their price target on shares of Ulta Beauty from $560.00 to $580.00 and gave the stock a “neutral” rating in a report on Friday, August 28th. JPMorgan Chase & Co. reduced their target price on Ulta Beauty from $750.00 to $631.00 and set an “overweight” rating for the company in a research note on Wednesday, June 3rd. DA Davidson lifted their price target on Ulta Beauty from $585.00 to $625.00 and gave the stock a “buy” rating in a research report on Friday, August 28th. Wells Fargo & Company dropped their price target on Ulta Beauty from $475.00 to $450.00 and set an “underweight” rating on the stock in a research note on Wednesday, June 3rd. Finally, Bank of America cut their price objective on Ulta Beauty from $685.00 to $650.00 and set a “buy” rating on the stock in a report on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $624.57. Get Our Latest Report on Ulta Beauty
Ulta Beauty Price Performance NASDAQ ULTA opened at $549.23 on Wednesday. The company has a market capitalization of $23.49 billion, a PE ratio of 20.02, a P/E/G ratio of 1.69 and a beta of 0.85. The company has a fifty day moving average of $509.19 and a 200 day moving average of $527.10. Ulta Beauty Inc. has a 1 year low of $443.60 and a 1 year high of $714.97.
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 the consensus estimate of $6.22 by $0.33. Ulta Beauty had a return on equity of 45.40% and a net margin of 9.34%.The business had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.99 billion. During the same quarter in the previous year, the firm posted $5.78 EPS. The company’s revenue for the quarter was up 8.9% on a year-over-year basis. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. Research analysts expect that Ulta Beauty Inc. will post 28.93 earnings per share for the current year.
About Ulta Beauty (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.
See Also Five stocks we like better than Ulta Beauty Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For 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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Allianz Asset Management GmbH lifted its stake in shares of Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) by 9.3% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 133,471 shares of the specialty retailer’s stock after acquiring an additional 11,362 shares during the period. Allianz Asset Management GmbH owned 0.31% of Ulta Beauty worth $66,668,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also bought and sold shares of ULTA. Focus Partners Wealth boosted its holdings in Ulta Beauty by 231.6% in the first quarter. Focus Partners Wealth now owns 3,744 shares of the specialty retailer’s stock worth $1,372,000 after acquiring an additional 2,615 shares in the last quarter. Intech Investment Management LLC increased its holdings in shares of Ulta Beauty by 48.9% during 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 in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Ulta Beauty during the second quarter worth approximately $466,000. Jump Financial LLC bought a new position in shares of Ulta Beauty in the 2nd quarter worth $1,196,000. Finally, Daiwa Securities Group Inc. lifted its holdings in shares of Ulta Beauty by 0.9% in the 2nd 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 in the last quarter. 90.39% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In ULTA has been the subject of a number of recent research reports. Raymond James Financial restated a “strong-buy” rating and set a $700.00 price target on shares of Ulta Beauty in a research note on Friday, August 28th. TD Cowen reaffirmed a “buy” rating on shares of Ulta Beauty in a research note on Tuesday, July 21st. Canaccord Genuity Group reduced their price objective on shares of Ulta Beauty from $799.00 to $731.00 and set a “buy” rating for the company in a report on Wednesday, June 3rd. Argus set a $550.00 target price on shares of Ulta Beauty in a report on Thursday, June 18th. Finally, Loop Capital reaffirmed a “hold” rating and issued a $550.00 price target on shares of Ulta Beauty in a research report on Wednesday, June 3rd. One equities 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 issued a Sell rating to the stock. According to data from MarketBeat.com, Ulta Beauty presently has an average rating of “Moderate Buy” and a consensus price target of $626.59.
Read Our Latest Stock Report on ULTA Ulta Beauty Price Performance NASDAQ ULTA opened at $564.12 on Tuesday. Ulta Beauty Inc. has a 1 year low of $443.60 and a 1 year high of $714.97. The firm has a market cap of $24.12 billion, a price-to-earnings ratio of 20.56, a PEG ratio of 1.69 and a beta of 0.85. The company has a fifty day moving average price of $507.23 and a 200-day moving average price of $528.09.
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, beating the consensus estimate of $6.22 by $0.33. Ulta Beauty had a net margin of 9.34% and a return on equity of 45.40%. The company had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same quarter in the prior year, the company posted $5.78 earnings per share. The firm’s revenue for the quarter was up 8.9% on a year-over-year basis. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. On average, research analysts anticipate that Ulta Beauty Inc. will post 28.93 EPS for the current fiscal year.
Insider Buying and Selling In other Ulta Beauty news, Director George R. Mrkonic, Jr. sold 383 shares of the 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 in the company, valued at approximately $1,143,919.36. This trade represents a 13.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.20% of the company’s stock.
About Ulta Beauty (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.
See Also Five stocks we like better than Ulta Beauty 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane 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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Investors interested in Retail - Miscellaneous stocks are likely familiar with Petco Health & Wellness (WOOF) and Ulta Beauty (ULTA). But which of these two companies is the best option for those looking for undervalued stocks?
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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BOLINGBROOK, Ill.--(BUSINESS WIRE)--Ulta Beauty, the nation's largest beauty retailer, has selected the 8 beauty and wellness brands that will participate in the fifth annual MUSE Accelerator Program, as part of Ulta Beauty's ongoing dedication to supporting brand development and retail readiness. Starting September 14, these early-stage brands spanning haircare, skincare, fragrance, cosmetics and body care, will kick-off an enriching 10-week journey that includes a robust curriculum, mentorshi.
Ulta Beauty TodayULTAUlta Beauty$545.66 +8.56 (+1.59%) As of 09/1/2026 04:00 PM Eastern52-Week Range$443.60▼$714.97P/E Ratio19.89Price Target$626.59Add to WatchlistThe retail sector took center stage last week with a bevy of earnings reports, and reactions were mixed, even though most companies beat estimates and raised outlooks. One prime example was Ulta Beauty Inc. NASDAQ: ULTA.
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.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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.
Ulta Beauty Inc (NASDAQ:ULTA) reported second-quarter revenue of $3 billion, topping analyst estimates of $2.96 billion, as the beauty retailer raised its full-year guidance.
Earnings per share came in at $6.55, up 13.3% year-over-year and ahead of the $6.18 estimate. Comparable sales rose 3.8%, a slowdown of 290 basis points from a year earlier. Operating income climbed 10.1% to $379.6 million.
Gross profit margin was 39.1%, down 10 basis points from a year ago. Net income totaled $282 million, with operating cash flow of $381.6 million.
The company now expects full-year net sales growth of 6.7% to 7.2%, up from a prior range of 6% to 7%. Comparable sales growth guidance was raised to 3.2%-3.7% from 2.5%-3.5%, and operating income growth is now seen at 8.3%-9.3%, up from 6.5%-9%.
Diluted EPS guidance was lifted to $28.70-$29.00 from $28.36-$28.80. Capital expenditure guidance was unchanged.
Ulta also expanded its stock repurchase authorization to $1.8 billion from $1.5 billion. The company repurchased $791.1 million in shares during the quarter.
"Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests," said CEO Kecia Steelman.
"We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience."
Ulta Beauty (ULTA - Free Report) came out with quarterly earnings of $6.55 per share, beating the Zacks Consensus Estimate of $6.21 per share. This compares to earnings of $5.78 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.48%. A quarter ago, it was expected that this beauty products retailer would post earnings of $6.9 per share when it actually produced earnings of $7.74, delivering a surprise of +12.17%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ulta, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $3.04 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.10%. This compares to year-ago revenues of $2.79 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ulta shares have lost about 10.2% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Ulta?While Ulta has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ulta was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.78 on $3 billion in revenues for the coming quarter and $28.77 on $13.22 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Five Below (FIVE - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on September 2.
This discount retailer is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +63%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Five Below's revenues are expected to be $1.21 billion, up 17.9% from the year-ago quarter.
MarketBeat Week in Review – 08/03 - 08/07Ulta Beauty NASDAQ: ULTA reported second-quarter fiscal 2026 results that included 8.9% net sales growth, 10.1% operating profit growth and a 13.3% increase in diluted earnings per share, prompting the beauty retailer to raise its full-year sales and earnings outlook.
Chief Executive Officer Kecia Steelman said the company generated 3.8% comparable sales growth during the quarter, increased active loyalty-program members by 3% and saw higher average spending per member. Ulta’s loyalty program reached about 47 million active members.
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Ulta's Growth Is Real, But So Are the Risks“Our sales outpaced the U.S. beauty market in a dynamic environment,” Steelman said, adding that the company gained share in prestige beauty while maintaining flat share in mass beauty, according to Circana.
Quarterly Financial Results Net sales rose to $3 billion from $2.8 billion a year earlier. Excluding the impact of Space NK, the U.K. and Ireland beauty retailer Ulta acquired, total sales increased in the mid-single-digit range, Chief Financial Officer Chris DelOrefice said.
MarketBeat Week in Review – 06/01 - 06/05Comparable sales growth was driven by average ticket, largely reflecting category-mix shifts, while transactions were roughly flat from the prior year. E-commerce posted high-teens sales growth, marking Ulta’s sixth consecutive quarter of double-digit digital growth, while comparable-store sales increased modestly.
Ulta opened 13 net new U.S. stores and one new Space NK location during the quarter. More than half of e-commerce orders were fulfilled through its network of more than 1,500 store locations.
Gross margin was 39.1% of sales, compared with 39.2% a year earlier, primarily due to the Space NK business mix. SG&A expense increased 8.2% to $803 million, though it declined to 26.4% of sales from 26.6% a year earlier. Operating profit rose to $380 million, with operating margin improving to 12.5% from 12.4%. Net income increased 8.1% to $282 million. Diluted earnings per share rose to $6.55. DelOrefice said gross-margin management benefited from lower shrink, supply-chain productivity and preserved merchandise margin, partly offsetting channel-mix effects, higher fuel costs and slower growth in other revenue.
Category Performance and Merchandise Fragrance was Ulta’s strongest category, producing high-teens comparable sales growth. Management cited Mother’s Day and Father’s Day campaigns, new launches and continued strength in luxury brands including Prada, Carolina Herrera and YSL. The company also launched fragrances from Drake’s Better World Fragrance House, Khloé Kardashian, Megan Thee Stallion and Viktor&Rolf.
Haircare generated high-single-digit comparable sales growth, supported by prestige haircare, treatments and hair tools. Newer brands Amika and Moroccanoil, as well as Cécred, contributed to prestige haircare performance, while Shark and T3 supported growth in hair tools.
Makeup comparable sales were approximately flat. Prestige makeup grew at a low-double-digit rate, aided by launches from Charlotte Tilbury and Half Magic and continued momentum from Rare Beauty. However, mass makeup declined in the low-single-digit range as certain brands lapped major new-product introductions from the prior year.
Steelman said the company sees potential “green shoots” in makeup for the second half, citing consumer interest in more expressive eye looks and a fuller-face makeup routine, as well as planned new launches in both mass and prestige products.
Total skincare and wellness sales declined modestly, as growth in prestige and mass skincare and double-digit wellness growth was more than offset by lower body-care sales. Ulta said K-beauty sales increased at a robust double-digit rate, with nearly half of the category’s sales coming from exclusive brands or products. The company added five K-beauty brands during the quarter and said it also sees opportunity in broader global beauty trends, including Chinese beauty.
Digital, Marketplace and International Expansion Ulta said its TikTok Shop initiative generated more than 100 million impressions since launch. The retailer used its Chelsea, New York, store as a live-shopping studio and added brands to the social-commerce platform, including a live celebrity fragrance launch with rapper Ice Spice.
The company’s marketplace assortment ended the quarter with more than 450 brands and over 12,000 SKUs. Management said the marketplace has helped attract new and reactivate lapsed loyalty members while supporting growth at Ulta’s UB Media advertising business. UB Media posted double-digit growth from the second quarter of 2025, supported by connected-TV offerings and spending by core and marketplace brands.
Internationally, Space NK continued to report robust sales growth and market-share expansion, according to Steelman. Ulta also opened a store in Chiapas, Mexico, bringing its total store count there to 12. Its Middle East franchise partner, Alshaya Group, is progressing on additional stores planned for later this year, though Ulta said it is navigating geopolitical conditions in the region alongside the partner.
Outlook and Capital Returns Ulta raised its fiscal 2026 outlook and now expects net sales growth of 6.7% to 7.2%, with comparable sales growth of 3.2% to 3.7%. The company expects operating profit growth of 8.3% to 9.3% and diluted EPS of $28.70 to $29, representing annual growth of 11.9% to 13.1%.
For the second half, Ulta expects net sales growth of 4% to 5% and comparable sales growth of 2% to 3%, while maintaining an expectation of market-share gains. Management said the outlook reflects both the company’s first-half results and caution about an evolving macroeconomic environment, including consumers’ focus on value and higher everyday costs.
Ulta ended the quarter with $213 million in cash and short-term investments, $340 million in short-term debt and $2.4 billion in inventory. It repurchased $236 million of stock during the quarter, bringing year-to-date repurchases to $791 million. The company raised its fiscal-year buyback target to $1.8 billion and said it expects to complete its current board authorization during fiscal 2026.
About Ulta Beauty (NASDAQ:ULTA)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Ulta Beauty (ULTA - Free Report) reported $3.04 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 8.9%. EPS of $6.55 for the same period compares to $5.78 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.97 billion, representing a surprise of +2.1%. The company delivered an EPS surprise of +5.48%, with the consensus EPS estimate being $6.21.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Ulta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable sales - YoY change: 3.8% versus the eight-analyst average estimate of 2%.Total stores open at end of the quarter [U.S.]: 1,534 compared to the 1,537 average estimate based on six analysts.Number of stores opened during the quarter [U.S.]: 14 versus 16 estimated by five analysts on average.Net Sales by Primary Category - Services: 4% versus the two-analyst average estimate of 3.8%.Total stores open at beginning of the quarter [U.S.]: 1,521 compared to the 1,521 average estimate based on two analysts.Net Sales by Primary Category - Fragrance: 13% versus 12.5% estimated by two analysts on average.Net Sales by Primary Category - Haircare: 20% versus the two-analyst average estimate of 19.3%.Net Sales by Primary Category - Cosmetics: 37% versus 37.5% estimated by two analysts on average.Net Sales by Primary Category - Other: 2% versus 2% estimated by two analysts on average.View all Key Company Metrics for Ulta here>>>
Shares of Ulta have returned +6.9% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Net Sales: Increased 8.9% to $3 billion, compared to $2.8 billion last year.Comparable Sales: Increased 3.8%, driven by average ticket, with transactions roughl
With U.S. stock futures trading mixed this morning on Friday, some of the stocks that may grab investor focus today are as follows:
Wall Street expects MINISO Group Holding Ltd – ADR (NYSE:MNSO) to post quarterly earnings at 30 cents per share on revenue of $856.70 million before the opening bell, according to data from Benzinga Pro. MINISO shares rose 2.8% to $11.11 in after-hours trading. Marvell Technology Inc. (NASDAQ:MRVL) reported better-than-expected financial results for the second quarter. Marvell posted second-quarter revenue of $2.74 billion, beating the consensus estimate of $2.71 billion. The chip designer reported adjusted earnings of 94 cents per share for the period, beating estimates of 92 cents per share, according to Benzinga Pro. Marvell shares fell 7.8% to $222.62 in the after-hours trading session. Ulta Beauty Inc. (NASDAQ:ULTA) posted upbeat results for the second quarter and raised its FY2026 guidance. Ulta Beauty shares fell 3.4% to $522.00 in the after-hours trading session. Check out our premarket coverage here
Gap Inc (NYSE:GAP) reported better-than-expected second-quarter earnings and raised their FY26 EPS guidance above estimates. Gap raised its full-year adjusted earnings guidance from a range of $2.30 to $2.40 per share to a new range of $2.35 to $2.45 per share versus estimates of $2.34 per share. Gap shares jumped 15% to $23.90 in the after-hours trading session. Analysts expect Frontline Plc (NYSE:FRO) to post quarterly earnings at $2.60 per share on revenue of $760.64 million before the opening bell. Frontline shares rose 0.2% to $43.82 in after-hours trading. Photo via Shutterstock
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.
Piper Sandler raised the price target for Workday Inc (NASDAQ:WDAY) from $145 to $190. Piper Sandler analyst Billy Fitzsimmons maintained a Neutral rating. Workday shares closed at $193.57 on Thursday. See how other analysts view this stock.HC Wainwright & Co. raised Generate Biomedicines Inc (NASDAQ:GENB) price target from $25 to $30. HC Wainwright & Co. analyst Mitchell S. Kapoor maintained a Buy rating. Generate Biomedicines shares closed at $15.77 on Thursday. See how other analysts view this stock.BTIG raised price target for Rubrik Inc (NYSE:RBRK) from $109 to $125. BTIG analyst Gray Powell maintained a Buy rating. Rubrik shares closed at $107.02 on Thursday. See how other analysts view this stock.Ascendiant Capital cut the price target for Genasys Inc (NASDAQ:GNSS) from $6 to $5. Ascendiant Capital analyst Edward Woo maintained a Buy rating. Genasys shares closed at $1.55 on Thursday. See how other analysts view this stock.Needham increased Marvell Technology Inc (NASDAQ:MRVL) price target from $270 to $300. Needham analyst N. Quinn Bolton maintained a Buy rating. Marvell Technology shares closed at $241.45 on Thursday. See how other analysts view this stock.Baird boosted Elastic NV (NYSE:ESTC) price target from $95 to $120. Baird analyst Shrenik Kothari maintained an Outperform rating. Elastic shares closed at $83.74 on Thursday. See how other analysts view this stock.B of A Securities cut Ulta Beauty Inc (NASDAQ:ULTA) price target from $685 to $650. B of A Securities analyst Lorraine Hutchinson maintained a Buy rating. Ulta Beauty shares closed at $540.10 on Thursday. See how other analysts view this stock.Goldman Sachs raised the price target for Dollar General Corp (NYSE:DG) from $128 to $141. Goldman Sachs analyst Kate McShane maintained a Neutral rating. Dollar General shares closed at $125.89 on Thursday. See how other analysts view this stock.Goldman Sachs boosted Best Buy Co Inc (NYSE:BBY) price target from $62 to $71. Goldman Sachs analyst Kate McShane maintained a Sell rating. Best Buy shares closed at $83.56 on Thursday. See how other analysts view this stock.B of A Securities raised Gap Inc (NYSE:GAP) price target from $26 to $27. B of A Securities analyst Lorraine Hutchinson maintained a Neutral rating. Gap shares closed at $20.79 on Thursday. See how other analysts view this stock.Considering buying ULTA stock? Here’s what analysts think:
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Ulta Beauty Inc (NASDAQ:ULTA) on Thursday posted better-than-expected earnings for the second quarter.
The company reported quarterly earnings of $6.55 per share which beat the analyst consensus estimate of $6.16 per share. The company reported quarterly sales of $3.036 billion which beat the analyst consensus estimate of $2.955 billion.
Ulta Beauty raised its FY2026 GAAP EPS guidance from $28.36-$28.80 to $28.70-$29.00 and also increased sales guidance from $13.136 billion-$13.260 billion to $13.223 billion-$13.285 billion.
“Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests,” said Kecia Steelman, president and chief executive officer. “We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience.”
Ulta Beauty shares fell 3.6% to trade at $520.68 on Friday.
These analysts made changes to their price targets on Ulta Beauty following earnings announcement.
B of A Securities analyst Lorraine Hutchinson maintained the stock with a Buy and lowered the price target from $685 to $650. Goldman Sachs analyst Kate McShane maintained the stock with a Buy and raised the price target from $648 to $667. Trending
Considering buying ULTA stock? Here’s what analysts think:
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Diane King Hall turns to the key earnings movers to close out an overall strong earnings week on Wall Street. She explains why Affirm (AFRM) investors see the fintech firm's report as a big step up for forward momentum.
Key Takeaways Ulta Beauty Q2 EPS rose 13.3% to $6.55 as net sales climbed 8.9% to $3.04 billion. ULTA posted 3.8% comparable sales growth, with e-commerce rising in the high-teens range. Ulta Beauty raised fiscal 2026 sales, comparable sales and EPS guidance after the strong quarter. Ulta Beauty, Inc. (ULTA - Free Report) delivered another solid quarter as beauty newness, omnichannel demand and disciplined execution supported profitable growth. For the second quarter of fiscal 2026, earnings of $6.55 per share rose 13.3% year over year and beat the consensus estimate of $6.21.
Net sales increased 8.9% to $3,035.7 million, topping the consensus estimate of $2,973 million. Comparable sales jumped 3.8%, driven by higher average ticket, while transactions were roughly flat.
ULTA's Omnichannel Sales Stay FirmUlta Beauty continued to generate growth across stores and digital. E-commerce sales increased in the high-teens range, marking the sixth consecutive quarter of double-digit digital growth. Comparable-store sales posted modest growth as the company lapped a strong year-ago performance.
The company opened 13 net new Ulta Beauty stores and one net new Space NK store during the quarter. Excluding Space NK, total sales increased in the strong mid-single-digit range. Stores fulfilled more than 50% of e-commerce orders, allowing ULTA to use its physical network to improve omnichannel convenience and fulfillment efficiency.
Ulta Beauty's Category Mix Shows DivergenceFragrance remained the strongest category, generating high-teen comparable sales growth on successful gifting events and compelling newness. Haircare delivered high-single-digit comparable growth, supported by prestige haircare, treatments and hair tools. K-Beauty sales also increased at a robust double-digit rate, with nearly half of sales coming from exclusive brands or products.
Makeup comparable sales were approximately flat as prestige gains offset a low-single-digit decline in mass makeup. Skincare and wellness declined modestly, with growth in prestige and mass skincare and double-digit wellness gains more than offset by weaker body-care sales. Services generated mid-single-digit comparable growth on solid engagement in salon and specialty services.
ULTA Protects Profitability Amid Mix PressureGross profit increased 8.7% year over year to $1,186.95 million. Gross margin declined 10 basis points (bps) to 39.1%, primarily reflecting the Space NK business mix. Within the core Ulta Beauty business, lower shrink, supply-chain productivity and merchandise-margin preservation supported modest gross-margin improvement.
SG&A expenses increased 8.2% to $802.78 million, but declined 20 bps as a percentage of sales to 26.4%. Lower incentive compensation and corporate-overhead leverage partly offset Space NK costs and higher advertising investments. Operating income rose 10.1% to $379.64 million, while operating margin improved 10 bps to 12.5%. Net income increased 8.1% to $282.01 million.
Ulta Beauty Scales Loyalty and New Growth EnginesUlta Beauty ended the quarter with about 47 million active loyalty members, up 3% year over year, while average spending per member increased. The mobile app represented more than 60% of online sales, and management continued using personalization capabilities to drive incremental sales and engagement.
Marketplace expanded to more than 450 brands and over 12,000 SKUs, while UB Media delivered double-digit growth. Space NK generated robust sales growth and continued to gain market share. In Mexico, Ulta Beauty ended the quarter with 12 stores as the company continued expanding its international presence.
ULTA Maintains Disciplined Capital DeploymentMerchandise inventory was nearly flat year over year at $2,406.73 million, while inventory per store declined 4.1%. Cash and short-term investments totaled $213.45 million, while short-term debt was $339.58 million. First-half operating cash flow reached $381.59 million, and capital expenditures totaled $139.53 million.
ULTA repurchased $791.10 million of stock during the first six months of fiscal 2026. The company raised its fiscal 2026 repurchase target to $1,800 million and expects to use the remaining $1,000 million under its current share repurchase authorization by fiscal year-end.
Ulta Beauty Raises Fiscal 2026 OutlookManagement raised fiscal 2026 net sales growth guidance to 6.7-7.2% from 6-7% and comparable sales growth expectations to 3.2-3.7% from 2.5-3.5%. Operating income growth is now projected at 8.3-9.3%, up from 6.5-9%. Earnings guidance increased to $28.70-$29.00 per share from $28.36-$28.80.
For the second half, Ulta Beauty expects net sales growth of 4-5%, comparable sales growth of 2-3%, operating profit growth of 6-8% and earnings growth of 9-12%. Full-year gross margin is expected to remain roughly flat, while operating margin could improve by up to 20 bps. Capital expenditures remain projected at $400-$450 million.
Shares of the Zacks Rank #3 (Hold) company have gained 6.1% in the past three months against the industry’s 3.8% decline.
Stocks to ConsiderSally Beauty Holdings, Inc. (SBH - Free Report) , a retailer and distributor of professional beauty supplies, currently has a Zacks Rank #2 (Buy). SBH delivered a trailing four-quarter earnings surprise of 6.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Sally Beauty’s current financial-year sales and EPS is expected to rise 0.8% and around 9%, respectively, from the year-ago reported figures.
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently holds a Zacks Rank #2. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings indicates growth of 15.1% and 36.7%, respectively, from the year-ago reported numbers.
Target Corporation (TGT - Free Report) offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.6% and 37.7%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.
Shares of Ulta Beauty (ULTA -4.18%) declined on Friday after the cosmetics retailer released its quarterly earnings report.
Image source: Getty Images.
Ulta's expansion strategy is working Ulta's net sales grew 8.9% year over year to $3 billion in its second quarter ended Aug. 1. Store openings, higher sales at existing locations, and the skincare product purveyor's acquisition of British beauty retailer Space NK drove the gains.
Ulta opened 14 net stores during the quarter, bringing its total to 1,622 as of Aug. 1. That includes 1,534 in the U.S. and 88 in international markets, over 80 of which were obtained from its purchase of Space NK.
The company's comparable sales, which measure revenue at stores and e-commerce sites open for at least 13 months, rose 3.8%.
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Ulta is doing a solid job of managing its inventory levels and keeping a lid on expenses. Its operating income jumped 10.1% to $379.6 million.
All told, Ulta's earnings per share climbed 13.3% to $6.55. That topped Wall Street's estimates, which had called for per-share profits of $6.20.
The sell-off is creating an opportunity for investors Some analysts pointed to Ulta's muted traffic growth and higher promotional activity, which weighed slightly on its gross margin, as potential concerns. But there wasn't much to not like about the cosmetics seller's Q2 report.
Moreover, management raised its forecast for full-year net sales and operating income growth to 6.7%-7.2% and 8.3%-9.3%, respectively. It also boosted its projection for earnings per share to $28.70-$29.00.
"We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience," CEO Kecia Steelman said.
With Ulta's shares now trading at roughly 18 times its earnings projections, value-focused investors may wish to consider buying its stock at a discount.
If you decide to invest, you'll likely be buying alongside Ulta. The beauty products leader intends to buy back up to $1 billion worth of its shares by the end of fiscal 2026.
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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Ulta Beauty (NASDAQ:ULTA) reported second-quarter fiscal 2026 results that included 8.9% net sales growth, 10.1% operating profit growth and a 13.3% increase in diluted earnings per share, prompting the beauty retailer to raise its full-year sales and earnings outlook.
Chief Executive Officer Kecia Steelman said the company generated 3.8% comparable sales growth during the quarter, increased active loyalty-program members by 3% and saw higher average spending per member. Ulta’s loyalty program reached about 47 million active members.
“Our sales outpaced the U.S. beauty market in a dynamic environment,” Steelman said, adding that the company gained share in prestige beauty while maintaining flat share in mass beauty, according to Circana. Quarterly Financial Results Net sales rose to $3 billion from $2.8 billion a year earlier. Excluding the impact of Space NK, the U.K. and Ireland beauty retailer Ulta acquired, total sales increased in the mid-single-digit range, Chief Financial Officer Chris DelOrefice said.
Comparable sales growth was driven by average ticket, largely reflecting category-mix shifts, while transactions were roughly flat from the prior year. E-commerce posted high-teens sales growth, marking Ulta’s sixth consecutive quarter of double-digit digital growth, while comparable-store sales increased modestly.
Ulta opened 13 net new U.S. stores and one new Space NK location during the quarter. More than half of e-commerce orders were fulfilled through its network of more than 1,500 store locations.
Gross margin was 39.1% of sales, compared with 39.2% a year earlier, primarily due to the Space NK business mix. SG&A expense increased 8.2% to $803 million, though it declined to 26.4% of sales from 26.6% a year earlier. Operating profit rose to $380 million, with operating margin improving to 12.5% from 12.4%. Net income increased 8.1% to $282 million. Diluted earnings per share rose to $6.55. DelOrefice said gross-margin management benefited from lower shrink, supply-chain productivity and preserved merchandise margin, partly offsetting channel-mix effects, higher fuel costs and slower growth in other revenue.
Category Performance and Merchandise Fragrance was Ulta’s strongest category, producing high-teens comparable sales growth. Management cited Mother’s Day and Father’s Day campaigns, new launches and continued strength in luxury brands including Prada, Carolina Herrera and YSL. The company also launched fragrances from Drake’s Better World Fragrance House, Khloé Kardashian, Megan Thee Stallion and Viktor&Rolf.
Haircare generated high-single-digit comparable sales growth, supported by prestige haircare, treatments and hair tools. Newer brands Amika and Moroccanoil, as well as Cécred, contributed to prestige haircare performance, while Shark and T3 supported growth in hair tools.
Makeup comparable sales were approximately flat. Prestige makeup grew at a low-double-digit rate, aided by launches from Charlotte Tilbury and Half Magic and continued momentum from Rare Beauty. However, mass makeup declined in the low-single-digit range as certain brands lapped major new-product introductions from the prior year.
Steelman said the company sees potential “green shoots” in makeup for the second half, citing consumer interest in more expressive eye looks and a fuller-face makeup routine, as well as planned new launches in both mass and prestige products.
Total skincare and wellness sales declined modestly, as growth in prestige and mass skincare and double-digit wellness growth was more than offset by lower body-care sales. Ulta said K-beauty sales increased at a robust double-digit rate, with nearly half of the category’s sales coming from exclusive brands or products. The company added five K-beauty brands during the quarter and said it also sees opportunity in broader global beauty trends, including Chinese beauty.
Digital, Marketplace and International Expansion Ulta said its TikTok Shop initiative generated more than 100 million impressions since launch. The retailer used its Chelsea, New York, store as a live-shopping studio and added brands to the social-commerce platform, including a live celebrity fragrance launch with rapper Ice Spice.
The company’s marketplace assortment ended the quarter with more than 450 brands and over 12,000 SKUs. Management said the marketplace has helped attract new and reactivate lapsed loyalty members while supporting growth at Ulta’s UB Media advertising business. UB Media posted double-digit growth from the second quarter of 2025, supported by connected-TV offerings and spending by core and marketplace brands.
Internationally, Space NK continued to report robust sales growth and market-share expansion, according to Steelman. Ulta also opened a store in Chiapas, Mexico, bringing its total store count there to 12. Its Middle East franchise partner, Alshaya Group, is progressing on additional stores planned for later this year, though Ulta said it is navigating geopolitical conditions in the region alongside the partner.
Outlook and Capital Returns Ulta raised its fiscal 2026 outlook and now expects net sales growth of 6.7% to 7.2%, with comparable sales growth of 3.2% to 3.7%. The company expects operating profit growth of 8.3% to 9.3% and diluted EPS of $28.70 to $29, representing annual growth of 11.9% to 13.1%.
For the second half, Ulta expects net sales growth of 4% to 5% and comparable sales growth of 2% to 3%, while maintaining an expectation of market-share gains. Management said the outlook reflects both the company’s first-half results and caution about an evolving macroeconomic environment, including consumers’ focus on value and higher everyday costs.
Ulta ended the quarter with $213 million in cash and short-term investments, $340 million in short-term debt and $2.4 billion in inventory. It repurchased $236 million of stock during the quarter, bringing year-to-date repurchases to $791 million. The company raised its fiscal-year buyback target to $1.8 billion and said it expects to complete its current board authorization during fiscal 2026.
About Ulta Beauty (NASDAQ:ULTA) 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.
On August 24, 2026, Ulta Beauty Inc
ULTA +3.32% 94
shares rose 3.3% today, closing at $538.76. This increase reflects a strong upward momentum in the stock, which has seen a 52-week range between $443.60 and $714.97.
GF Value™ verdict: Current price is $538.76, which is 4.3% below the GF Value™ estimate of $562.75.GF Score™: 94/100, indicating a strong overall performance across various metrics.Most notable signal: Insiders sold $0.7 million worth of shares over the past 12 months, without any buying activity.Is ULTA Overvalued or Undervalued?According to the GF Value™, Ulta Beauty Inc is currently undervalued by 4.3%, with a market price of $538.76 compared to its fair value estimate of $562.75. This gap presents a potential opportunity for investors, as the current price suggests some margin of safety. The GF Value™ is GuruFocus's proprietary estimate that assesses intrinsic value by analyzing historical trading multiples, past business growth, and future performance estimates. With a GF Valuation label of "Fairly Valued," it indicates that while there is some undervaluation, the stock is not significantly discounted.
While the stock's current price suggests an attractive entry point, it is essential to consider external market conditions and operational risks that could impact Ulta's financial performance. If the company's earnings do not meet expectations, the perceived undervaluation could shift, leading to potential downside risks.
How Does ULTA's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)20.2x19.4xForward P/E18.6xN/AThe current P/E ratio of 20.2x is above its 5-year median of 19.4x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that while the stock is currently undervalued, it may not be as attractive when considering its historical P/E levels. Investors should weigh these factors when assessing potential entry points.
What Does ULTA's GF Score™ Tell Us?The GF Score™ evaluates a company's financial health and overall performance across various dimensions, providing a comprehensive view of its potential. For Ulta Beauty Inc, the score is an impressive 94/100, indicating strong fundamentals. The standout sub-ranks include Profitability (10/10) and Valuation (10/10), while the Momentum rank is lower at 5/10.
MetricRatingGF Score™94/100Financial Strength7/10Profitability10/10Growth9/10Valuation10/10Momentum5/10The high scores in Profitability and Valuation suggest that Ulta is operating efficiently and is well-positioned in the market. However, the lower Momentum rank indicates that the stock may not be experiencing strong upward price movement in the short term. This mix of strengths and weaknesses should be considered by those evaluating Ulta's long-term prospects.
What Are Gurus and Insiders Doing with ULTA?Nine gurus currently hold shares of Ulta Beauty Inc, with five increasing their positions and six trimming their holdings in recent quarters. This mixed activity shows a divided sentiment among institutional investors, which may reflect differing outlooks on the company's future performance. Such insights are valuable, as they highlight the stock's attractiveness to seasoned investors.
In terms of insider activity, the sale of $0.7 million in shares by insiders over the past 12 months, with no buying activity reported, raises some caution. This pattern may suggest that insiders are not optimistic about the near-term prospects of the company or simply looking to diversify their holdings. The absence of insider buying could be perceived as a lack of confidence in the stock's current valuation, adding another layer of complexity for potential investors.
What This Means for InvestorsBased on the GF Value™ assessment, Ulta Beauty Inc appears to be undervalued at its current price of $538.76, with a fair value estimate of $562.75. However, the premium P/E ratio relative to its historical median suggests investors proceed with caution. The mixed signals from guru and insider activity further complicate the outlook. Prospective investors should consider these factors and conduct further analysis before making investment decisions.
For more detailed information on Ulta Beauty Inc
ULTA +3.32% 94
, visit the Ulta Beauty Inc (ULTA) stock page, and explore the GF Value™ page for additional insights.
Frequently Asked QuestionsWhat is ULTA's GF Score™?
Ulta Beauty Inc has a GF Score™ of 94/100, indicating strong overall performance across multiple metrics.
Is ULTA overvalued or undervalued?
Ulta Beauty Inc is currently undervalued, trading 4.3% below its GF Value™ estimate of $562.75.
What is ULTA's P/E ratio?
The P/E ratio for Ulta Beauty Inc is currently 20.2x, which is above its 5-year median of 19.4x, suggesting a premium valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Ulta Beauty is expected to post Q2 revenues of $2.97 billion, up 6.5% from the year-ago period. Digital enhancements, loyalty efforts and personalized marketing likely supported traffic and sales. Space NK is expected to boost revenues, while strategic investments likely kept SG&A expenses elevated. Ulta Beauty, Inc. (ULTA - Free Report) is likely to witness top- and bottom-line growth when it reports second-quarter fiscal 2026 earnings on Aug. 27. The Zacks Consensus Estimate for revenues is pegged at $2.97 billion, indicating an increase of 6.5% from the year-ago reported number.
The consensus mark for earnings has risen 0.5% over the past seven days to $6.20 a share, which suggests a jump of 7.3% from the figure reported in the year-ago period. ULTA has a trailing four-quarter surprise of nearly 10%, on average.
Factors Likely to Influence ULTA’s Upcoming ResultsUlta Beauty’s second-quarter performance is likely to have benefited from continued healthy engagement in beauty and wellness, supported by its broad mass-to-luxury assortment. The company entered the quarter focused on driving traffic and conversion through guest service, in-store events, loyalty and personalized marketing while emphasizing brand building, exclusivity and wellness.
Digital momentum may also have supported sales. Ongoing enhancements, including expanded same-day delivery, Buy Now, Pay Later and omnichannel fulfillment options, are aimed at improving convenience and the guest experience. The recently launched TikTok Shop also provides an additional discovery channel, particularly for younger consumers.
The Space NK acquisition is likely to have supported Ulta Beauty’s top-line growth, as the company expects first-half sales to benefit from the acquisition. Profitability may also have received support from inventory productivity, supply-chain efficiencies and shrink improvement.
However, macroeconomic uncertainty, increasingly value-focused consumers, higher fuel costs and intense competition in the beauty market may have limited sales and margin expansion. Although Space NK is expected to contribute to revenues, the acquisition, together with ongoing strategic investments, is also likely to have kept first-half SG&A expenses elevated.
Earnings Whispers for ULTAOur proven model predicts an earnings beat for Ulta Beauty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Ulta Beauty currently carries a Zacks Rank #3 and has an Earnings ESP of +0.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable CombinationHere are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at approximately $3 billion, which indicates around 12% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington’s upcoming quarter’s EPS is pegged at $2.18, which implies 37.1% growth year over year. BURL delivered a trailing four-quarter earnings surprise of 14%, on average.
Dollar Tree, Inc. (DLTR - Free Report) currently has an Earnings ESP of +0.98% and a Zacks Rank of 3. The consensus estimate for Dollar Tree’s quarterly revenues is pinned at $4.9 billion, which implies 6.2% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.12, which indicates a 45.4% increase year over year. DLTR delivered a trailing four-quarter earnings surprise of roughly 32.1%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $94.5 billion, which calls for a jump of 9.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco’s upcoming quarter EPS is pegged at $6.51, implying 10.9% year-over-year growth. COST has a trailing four-quarter earnings surprise of 1%, on average.
Each week, Benzinga’s Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the surface and deserve attention.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
Here’s a look at the Benzinga Stock Whisper Index for the week ending August 21:
Digital Realty Trust (NYSE:DLR): The real estate company has gained interest from readers as an AI trade related to its data centers. In late July, the company beat second-quarter estimates and raised guidance. Analysts have been raising price targets and several upgraded the stock from Hold to Buy. The stock’s above average attention from readers this week could point to increased interest in AI-related stocks and the data center trade being back on.
Brightspring Health Services (NASDAQ:BTSG): The home and community based health care stock saw strong interest from readers during the week. The stock was down 4% over the last five days, which comes after beating analyst estimates for both earnings per share and revenue in the second quarter, reported in late July. The company also raised guidance and saw analysts raise their price targets. The pullback in shares this week could be profit taking with the stock up over 140% in the last year, which could represent a potential opportunity to look at an entry point for the high growth name.
Ulta Beauty (NASDAQ:ULTA): The largest specialized beauty retailer in the United States is on watch ahead of second-quarter financial results on Thursday and with the company’s partnership with Target ending. The beauty company has beaten analyst estimates for revenue in seven straight quarters and nine of the last 10 quarters overall. The company has beaten analyst estimates for earnings per share in eight of the last 10 quarters. Investors are likely to want to hear more on the company’s future growth plans and how it may make up for losing the Target partnership.
Sanmina Corporation (NASDAQ:SANM): The integrated manufacturing solutions stock saw shares trade lower on the week, but with increased reader attention. JPMorgan maintained a Neutral rating on the stock, while lowering the price target from $275 to $260. The company posted a double beat in July and raised full-year guidance. Shares are up over 70% over the last year, which could make the recent decline a pullback and a buying opportunity for investors. The company has been consistently beating analyst estimates, currently on a streak of eight straight double beats.
Riot Platforms (NASDAQ:RIOT): The digital infrastructure stock saw increased interest and a rising stock price with Bitcoin trading back over the $72,000 level. The company is a leading Bitcoin miner and the shares often rise and fall with volatility related to leading cryptocurrency. Riot is also working on AI deals as it becomes one of several cryptocurrency miners that are diversifying to using their power generation to help power data centers. Riot has signed a 20-year deal with Anthropic worth $9.1 billion and recently saw analysts raise their price targets, which could be related to the new growth opportunities for the company.
Stay tuned for next week’s report, and follow Benzinga Pro for all the latest headlines and top market-moving stories here.
Read the latest Stock Whisper Index reports here:
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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
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It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Ulta Beauty (ULTA - Free Report) Ulta Beauty, Inc., headquartered in Bolingbrook, IL, is an international specialty beauty retailer. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
ULTA, a #3 (Hold) stock, was added to the Focus List on March 25, 2020 at $177.59 per share. Since then, shares have increased 190.07% to $515.14.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased to $28.76. ULTA boasts an average earnings surprise of 10%.
Additionally, ULTA's earnings are expected to grow 12.2% for the current fiscal year.
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The market expects Ulta Beauty (ULTA - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 27. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis beauty products retailer is expected to post quarterly earnings of $6.19 per share in its upcoming report, which represents a year-over-year change of +7.1%.
Revenues are expected to be $2.97 billion, up 6.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.95% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Ulta?For Ulta, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Ulta will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Ulta would post earnings of $6.9 per share when it actually produced earnings of $7.74, delivering a surprise of +12.17%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Ulta appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerBath & Body Works (BBWI - Free Report) , another stock in the Zacks Retail - Miscellaneous industry, is expected to report earnings per share of $0.24 for the quarter ended July 2026. This estimate points to a year-over-year change of -35.1%. Revenues for the quarter are expected to be $1.5 billion, down 3.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Bath & Body Works has been revised 2.4% up to the current level. Nevertheless, the company now has an Earnings ESP of +3.63%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Bath & Body Works will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
BlackRock Inc. bought a new stake in Ulta Beauty Inc. (NASDAQ:ULTA – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 4,026,148 shares of the specialty retailer’s stock, valued at approximately $1,815,712,000. BlackRock Inc. owned approximately 9.37% of Ulta Beauty as of its most recent SEC filing.
Several other institutional investors and hedge funds have also bought and sold shares of the company. Fideuram Asset Management Ireland dac acquired a new position in shares of Ulta Beauty during the fourth quarter worth $25,000. Hilton Head Capital Partners LLC boosted its position in shares of Ulta Beauty by 860.0% in the 1st quarter. Hilton Head Capital Partners LLC now owns 48 shares of the specialty retailer’s stock worth $25,000 after purchasing an additional 43 shares in the last quarter. Strengthening Families & Communities LLC grew its stake in Ulta Beauty by 4,200.0% during the 4th quarter. Strengthening Families & Communities LLC now owns 43 shares of the specialty retailer’s stock worth $26,000 after buying an additional 42 shares during the last quarter. Clearstead Trust LLC acquired a new position in Ulta Beauty during the 2nd quarter valued at about $27,000. Finally, Ascentis Independent Advisors acquired a new position in Ulta Beauty during the 1st quarter valued at about $29,000. 90.39% of the stock is owned by hedge funds and other institutional investors.
Ulta Beauty News Summary Here are the key news stories impacting Ulta Beauty this week:
Positive Sentiment: Ulta announced an exclusive U.S. partnership with hair-wellness brand Nutrire. The brand will launch on Ulta.com before expanding to approximately 250 stores, while skincare brand Dr. Reju-All is making its nationwide retail debut through Ulta. The launches could strengthen Ulta’s assortment, attract new customers and support its emerging-brand “Sparked” strategy. Ulta Beauty Adds Exclusive Brand Launch And 250 Store Rollout Positive Sentiment: China’s largest beauty company is reportedly expanding in the U.S. through a deal with Ulta. The partnership may increase product selection and international beauty-brand traffic across Ulta’s digital and store network. China’s Biggest Beauty Firm to Expand in US With Ulta Deal Positive Sentiment: Investors are focused on Ulta’s August 27 earnings release, with expectations for year-over-year earnings and revenue growth. Recent analysis also points to resilient loyalty-program performance, supporting the view that customer engagement remains a key strength. Is Ulta Beauty Below Fair Value Following Earnings Hopes and the Nutrire Launch? Ulta Beauty Stock May Be 10% Undervalued as Loyalty Growth Holds Up Neutral Sentiment: Ulta and Estée Lauder announced new executive appointments. The changes could affect strategy over time, but the available report does not indicate an immediate financial impact. Ulta Beauty and Estée Lauder Name New Executives Negative Sentiment: Target has ended its Ulta shop-in-shop arrangement and plans to replace it with its own Beauty Studio concept in roughly 600 locations. Losing that distribution channel could reduce Ulta’s reach and sales potential, although the company is simultaneously adding exclusive brands and other growth partners. Ulta’s Target Exit and Nutrire Deal Might Change the Case for Investing in Ulta Beauty Wall Street Analyst Weigh In Several equities research analysts have weighed in on ULTA shares. Robert W. Baird lowered their price target on Ulta Beauty from $730.00 to $700.00 and set an “outperform” rating for the company in a report on Wednesday, June 3rd. B. Riley Financial cut their price objective on shares of Ulta Beauty from $600.00 to $500.00 and set a “neutral” rating on the stock in a report on Wednesday, June 3rd. Canaccord Genuity Group decreased their price objective on shares of Ulta Beauty from $799.00 to $731.00 and set a “buy” rating for the company in a research report on Wednesday, June 3rd. Wells Fargo & Company lowered their target price on shares of Ulta Beauty from $475.00 to $450.00 and set an “underweight” rating for the company in a research note on Wednesday, June 3rd. Finally, Morgan Stanley dropped their target price on shares of Ulta Beauty from $700.00 to $630.00 and set an “overweight” rating on the stock in a research report on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Ulta Beauty currently has an average rating of “Moderate Buy” and an average target price of $638.09. Read Our Latest Report on Ulta Beauty
Ulta Beauty Stock Performance Shares of ULTA opened at $527.85 on Thursday. The stock has a 50-day moving average of $488.14 and a two-hundred day moving average of $540.76. Ulta Beauty Inc. has a one year low of $443.60 and a one year high of $714.97. The stock has a market cap of $22.69 billion, a P/E ratio of 19.79, a P/E/G ratio of 1.61 and a beta of 0.87.
Ulta Beauty (NASDAQ:ULTA – Get Free Report) last posted its quarterly earnings results on Tuesday, June 2nd. The specialty retailer reported $7.74 earnings per share for the quarter, beating the consensus estimate of $6.89 by $0.85. The business had revenue of $3.16 billion for the quarter, compared to the consensus estimate of $3.12 billion. Ulta Beauty had a return on equity of 44.77% and a net margin of 9.36%.The company’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $6.70 EPS. Ulta Beauty has set its FY 2026 guidance at 28.360-28.800 EPS. Analysts predict that Ulta Beauty Inc. will post 28.76 EPS for the current fiscal year.
Insider Buying and Selling In related news, Director George R. Mrkonic, Jr. sold 383 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $475.84, for a total value of $182,246.72. Following the sale, the director owned 2,404 shares in the company, valued at $1,143,919.36. This represents a 13.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.20% of the stock is currently owned by corporate insiders.
Ulta Beauty 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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