Latest news with #ULTA
Miami Herald
5 hours ago
- Business
- Miami Herald
Ulta Beauty issues stern warning as consumers switch gears
Like many retailers across the country, Ulta Beauty (ULTA) is navigating a tough economic environment amid inflation and the looming threat of tariffs. Despite recently seeing a small boost in sales during the first few months of this year, the beauty retailer has made a bold move, signaling that it is cautious about future customer behavior. Don't miss the move: Subscribe to TheStreet's free daily newsletter In Ulta's first-quarter earnings report for 2025, it revealed that its comparable sales increased by 2.9% year-over-year. Specifically, the number of transactions in its stores increased by 0.6%, while the average amount of money customers spent per transaction spiked by 2.3%, which was primarily driven by higher prices. Related: Ulta Beauty makes drastic decision on Target partnership Despite the boost in sales, the foot traffic in Ulta's stores declined during the quarter, according to recent data from The average number of visits customers made to each of its locations dipped by roughly 7%. Image source: Jones/Bloomberg via Getty Images During an earnings call on May 30, Ulta Beauty CEO Kecia Steelman said that fragrance sales performed the strongest during the quarter, with brands such as XO Khloé by Khloé Kardashian and Noyz performing well. Skincare and wellness sales also increased; however, hair care sales remained flat, while makeup sales "decreased slightly." "Consumer engagement with beauty remains healthy, and our insights indicate beauty and wellness remain a top priority for beauty enthusiasts who tell us that they're more willing to make tradeoffs in other discretionary areas to maintain their beauty regimens," said Steelman during the call. "At the same time, they are cautious, and value is an increasingly important priority as they navigate ongoing wallet pressures." Related: Ross Stores makes drastic decision customers will see in stores She also said many consumers are "leaning into beauty as a comfort and escape from the stress of macro uncertainty," and the company expects that this emotional connection will support the company's sales going forward. However, despite this pattern of customer behavior, she warned that customers could quickly change their tune as they navigate a tough economic environment. "While they tell us that they intend to prioritize beauty and wellness, that's what they say, but they could also do something very different depending on the environment," said Steelman. In response to this risk, Ulta has updated its sales expectations for the rest of the year. It expects its comparable sales for the year to either remain flat or increase by 1.5%. Previously, it expected its sales to increase by no more than 1%. Ulta said the updated outlook reflects expectations that its comparable store sales will either decrease by low single digits or modestly increase during the second half of the year. More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior "While the beauty category has historically been resilient through economic downturns, it has not been immune to consumer pressure," said Ulta Beauty Chief Financial Officer Paula Oyibo during the call. "The operating environment continues to be very dynamic, and the evolving global trade landscape has created more uncertainty related to consumer wallet pressures, especially for the second half of the year." The move from Ulta comes during a time when many consumers are worried about the impact President Donald Trump's tariffs (taxes companies pay to import goods from overseas) will have on their finances. In April, Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs. The pause on reciprocal tariffs will end in July, and as a result, about 60 countries will see higher tariff rates. This will likely cause U.S. consumers to see inflated prices for everyday goods. Trump's tariff policy has led to uncertainty, especially since it has changed multiple times and was recently challenged in federal court. According to a recent survey from market research company Numerator, 72% of consumers are worried that tariffs will raise prices for everyday goods. Also, 85% are concerned that tariffs will impact their personal finances, while 83% will adjust their shopping behaviors to prepare for tariffs. Related: Home Depot struggles to reverse concerning customer behavior The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
18 hours ago
- Business
- Yahoo
Ulta's First-Quarter Beat Amid Tough Beauty Backdrop Prompts Price Target Boost at Oppenheimer
Ulta Beauty's (ULTA) strong quarterly results in a challenging environment prompted Oppenheimer to l Sign in to access your portfolio
Business Insider
20 hours ago
- Business
- Business Insider
Ulta Beauty (ULTA) Receives a Hold from TD Cowen
In a report released today, Oliver Chen from TD Cowen maintained a Hold rating on Ulta Beauty (ULTA – Research Report), with a price target of $465.00. The company's shares opened today at $468.16. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Chen covers the Consumer Cyclical sector, focusing on stocks such as Kohl's, Macy's, and Ulta Beauty. According to TipRanks, Chen has an average return of 5.9% and a 51.81% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ulta Beauty with a $428.27 average price target, a -8.52% downside from current levels. In a report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $455.00 price target. ULTA market cap is currently $19.04B and has a P/E ratio of 16.62. Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is neutral on the stock. Last month, Jodi Caro, the GC, Chief Risk & Compl. Ofc of ULTA sold 902.00 shares for a total of $332,982.32.
Yahoo
a day ago
- Business
- Yahoo
Ulta Beauty Shares Soar on Q1 Beat, Raised Guide
Ulta Beauty (NASDAQ:ULTA) jumps 11.2% as its Unleashed turnaround delivers better-than-expected Q1 comp sales and a lifted outlook. In Q1, ULTA posted adjusted EPS of $6.70, handily topping forecasts, on a 4.4% sales rise that outpaced both Sephora and Amazon-driven market share gains. Management raised full-year guidance for revenue, EPS and comps, citing slowing share losses to prestige rivals and stronger teen and value-driven customer cohorts. Evercore's Michael Binetti points to Ulta's early momentum among teens and its blend of innovation-with-value as a competitive edge, while Morgan Stanley's Simeon Gutman sees comps potentially hitting 2.5% in 2025 and 4.5% in 2026driving operating leverage and healthier margins. Digital growth also impressed: Ulta's online revenue climbed 10% despite Amazon's beauty push, aided by features like Split Cart and Shop My Store that boost engagement and defend digital share. CEO Kecia Steelman says these efforts are translating into stronger engagement, increased relevance and measurable business impact. UBS's Michael Lasser adds that rising Net Promoter Scores across stores and e-commerce demonstrate crisper execution. Investors should care because Ulta's dual-track recoveryrevived in-store comps plus robust digital gainssignals that its Unleashed initiative can sustain share gains and margin expansion, offsetting the headwinds that stalled growth last year. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Ulta Beauty, Inc. (ULTA): A Bull Case Theory
We came across a bullish thesis on Ulta Beauty, Inc. (ULTA) by @wallstengine on X (Twitter). In this article, we will summarize the bulls' thesis on ULTA. Ulta Beauty, Inc. (ULTA)'s share was trading at $407.04 as of 23rd May. ULTA's trailing and forward P/E were 16.06 and 17.89 respectively according to Yahoo Finance. A close-up of a customer's hands selecting beauty products from an online retailer. Ulta Beauty (ULTA) has been upgraded to Buy by Goldman Sachs with a price target raised to $423 from $384, marking a turning point in sentiment after a cautious stance since December 2022. The firm's previous hesitation stemmed from concerns about a slowdown in beauty category growth and erosion in prestige market share. However, entering FY25, Goldman believes these headwinds have bottomed, setting the stage for a rebound. The upgrade is driven by multiple catalysts. First, comp momentum is expected to accelerate in Q1 and throughout FY25, backed by encouraging quarter-to-date trends, an uptick in monthly active users since November 2024, and increased consumer engagement, as evidenced by rising search traffic around ULTA's popular '21 Days of Beauty' campaign. Second, competitive pressures from peers like Sephora may be easing, with ULTA showing improvement in new product rollouts, a key factor in regaining share and maintaining relevance with beauty consumers. Third, Goldman sees the company's FY25 guidance, especially on margin assumptions, as conservative. Given ULTA's history of outperforming on SG&A efficiency, there could be meaningful upside to profitability. Finally, from a valuation standpoint, the stock trades at 15.8x forward earnings, a discount to its three-year average of 17.9x, making it an attractive entry point. With consumer engagement improving, competitive dynamics stabilizing, and management conservatism in guidance offering potential beats, ULTA presents a compelling risk/reward setup for investors. Goldman's view signals a potential inflection in sentiment, as multiple tailwinds align to support reacceleration in both fundamentals and the stock's multiple. Previously, we have covered Ulta Beauty, Inc. (ULTA) in January 2025 wherein we summarized a bullish thesis by somalley3 on the Value Investing subreddit. The user highlighted the company's strong brand, loyal customer base, and unique positioning as the only retailer combining mass-market and prestige beauty products. Despite short-term challenges and a post-pandemic slowdown, the article argued that ULTA's solid fundamentals, efficient capital allocation, and expansion opportunities—particularly through Target and potential international growth—made the stock undervalued and attractive for long-term investors. Since our last coverage, the stock is down 6.41% as of 26th May. Ulta Beauty, Inc. (ULTA) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held ULTA at the end of the fourth quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of ULTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ULTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
