
Ulta Beauty (ULTA) Stock Forecast & Price Target
Ulta Beauty (ULTA) Analyst Ratings
Bulls say
Ulta Beauty's recent financial performance demonstrates a positive trajectory, with revenue growth driven by new store contributions and an estimated increase of 3.4% year-over-year, despite some challenges in gross margin. The company's gross margin for the fourth quarter was 38.2%, surpassing consensus expectations due to lower inventory shrink and a favorable sales mix, highlighting operational efficiencies. Additionally, Ulta concluded the fourth quarter with a robust cash position of $703.2 million, positioning the firm well for future expansion opportunities, including franchised stores in Mexico and a joint venture in the Middle East.
Bears say
Ulta Beauty’s revised sales growth forecast for 2024 has decreased to 2.6% from a prior estimate of 3.1%, indicating a slowdown in topline revenue growth with total sales projected at $11.59 billion. The fourth quarter revealed a 1.9% decline in net sales year-over-year, and the company's guidance for earnings per share (EPS) fell below prior expectations, projecting between $22.50 and $22.90, compared to last year’s EPS of $25.34. Additionally, makeup sales experienced a mid-single-digit decline in comparable sales for the fourth quarter, while spending per member also decreased by 6% year-over-year, pointing to weakening consumer engagement.
This aggregate rating is based on analysts' research of Ulta Beauty and is not a guaranteed prediction by Public.com or investment advice.
Ulta Beauty (ULTA) Analyst Forecast & Price Prediction
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