What's Going On With Ulta Beauty Shares Friday?

Ulta Beauty, Inc. ULTA stock is trading higher on Friday after the company reported better-than-expected fourth-quarter earnings on Thursday.

The Details: Ulta reported earnings per share of $8.46, beating analysts’ estimate of $7.14. In addition, the company reported sales of $3.49 billion, beating analysts’ estimate of $3.46 billion but falling 1.9% year-over-year.

The company attributed the decline to an extra week of sales in fiscal-year 2023, partially offset by new store openings and higher same-store sales. Comparable sales rose 1.5%, driven by a 3.0% increase in average ticket size, despite a 1.4% drop in transactions.

For fiscal-year 2025, Ulta expects net sales between $11.5 billion and $11.6 billion, versus analysts’ estimate of $11.67 billion. The company projects earnings per share between $22.50 and $22.90, versus analysts’ estimate of $23.50.

“I am incredibly optimistic about the future of Ulta Beauty, as I believe we have the right elements to drive our success – a strong business model, an ambitious long-term plan, and passionate associates who bring our brand to life for our guests every day. Fiscal 2025 will be a pivotal year as we make purposeful investments to fuel our future growth and move quickly to optimize our business. While it will take time to see the impact of these efforts, we are confident these investments will help reignite our momentum and unlock sustained growth and long-term value for our shareholders,” said Kecia Steelman, president and CEO of Ulta.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Morgan Stanley analyst Simeon Gutman maintained an Overweight rating on Ulta and lowered the price target from $500 to $460.
• Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating on Ulta and lowered the price target from $500 to $460.
• Piper Sandler analyst Korinne Wolfmeyer maintained a Neutral rating on Ulta and lowered the price target from $425 to $364.
• B of A Securities analyst Lorraine Hutchinson maintained a Neutral rating on Ulta and lowered the price target from $475 to $380.

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ULTA Price Action: At the time of writing, Ulta stock is trading 7.36% higher at $337.34, according to data from Benzinga Pro.

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