Ulta Beauty (ULTA) stock is surging Friday after the beauty retailer beat top- and bottom-line expectations for its fiscal third quarter and raised its full-year outlook.
In the 13 weeks ended November 2, Ulta's revenue increased 1.7% year over year to $2.53 billion, driven by new store openings and a 0.6% rise in same-store sales. Its earnings per share (EPS) were up 1.4% from the year-ago period to $5.14.
"The Ulta Beauty team delivered better-than-expected sales and profitability reflecting improved sales trends and strong financial discipline," said Ulta CEO Dave Kimbell in a statement. "As we look to the remainder of fiscal 2024, we are focused on executing with excellence across our key initiatives to deliver in a dynamic environment."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $2.5 billion and earnings of $4.54 per share, according to CNBC.
As a result of its strong performance in the third quarter, Ulta made positive revisions to its full-year outlook. Here's what the company now expects to accomplish in its fiscal year versus its previous forecast:
| Metric | Updated outlook | Prior outlook |
|---|---|---|
| Revenue | $11.1 billion to $11. billion | $11 billion to $11.2 billion |
| Comparable-store sales | (1%) to 0% | (2%) to 0% |
| Earnings per share | $23.20 to $23.75 | $22.60 to $23.50 |
"We remain confident that our model and strategies will drive long-term profitable growth and share leadership by enhancing our position as the destination for beauty enthusiasts for a lifetime," Kimbell said.
Is Ulta Beauty stock a buy, sell or hold?
It's been a tough road for Ulta Beauty in 2024, with the consumer discretionary stock down more than 11% for the year to date. Still, Wall Street remains bullish on the former Berkshire Hathaway equity portfolio holding.
According to S&P Global Market Intelligence, the consensus recommendation among the 31 covering analysts it tracks is a Buy. However, Wall Street did not anticipate the significant surge after earnings. Indeed, shares are up nearly 9% at last check. And analysts' average price target of $432.77 sits right around Ulta's current share price.
Financial services firm Oppenheimer is one of the more bullish outfits on the retail stock with an Outperform rating (equivalent to a Buy) and $505 price target.
"We continue to look favorably on ULTA's long-term prospects," says Oppenheimer analyst Rupesh Parikh. Among the many reasons Parikh is bullish on Ulta are the company's "differentiated offering and unique value proposition," its "potential to deliver above-average growth rates in retail" and the stock's "ongoing market share potential."
Related Content
-
46 Anti-Prime Day Tech Deals You Should Get from Best Buy's Black Friday in July Sale InsteadApple, Blink, Garmin, Samsung and more leading tech brands are on sale at Best Buy's rival Prime Day sale this week.
-
Stock Market Today: Trump Reextends His Tariff DeadlineWhen it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."
-
Stock Market Today: Trump Reextends His Tariff Deadline
When it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."
-
Should You Start a 'Trump Account' for Your Child?"Trump Accounts" for kids is part of the One Big, Beautiful Bill that was just signed. Look at if it's worth it for your children.
-
I'm a Financial Strategist: This Is the Investment Trap That Keeps Smart Investors on the SidelinesForget FOMO. FOGI — Fear of Getting In — is the feeling you need to learn how to manage so you don't miss out on future investment gains.
-
Can You Be a Good Parent to an Only Child When You're Also a Business Owner?Author and social psychologist Susan Newman offers advice to business-owner parents on how to raise a well-adjusted single child by avoiding overcompensation and encouraging chores.
-
How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)Financial advisers need to be strategic when they communicate with clients during market volatility. The goal is to not only reassure them but to also help them avoid rash decisions, deepen your relationship with them and build lasting trust.
-
Stock Market Today: President Trump Reboots the Tariff TradeA broad consensus that markets hate uncertainty more than anything else is being tested on an almost daily basis in 2025.
-
The 60-40 Portfolio Rule of Investing: Not Dead Yet?Adding alternative investments to a balanced portfolio can smooth out returns.
-
The Hidden Costs of Caregiving: Crisis Goes Well Beyond Financial IssuesMany caregivers are drained emotionally as well as financially, leading to depression, burnout and depleted retirement prospects. What's to be done?
