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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
Stocks Slip to Start Fed Week: Stock Market Today
While a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and Commentary
The December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
Why Investors Shouldn't Romanticize Bitcoin, From a Financial Planner
Investors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Financial Pro Focused on Federal Benefits: These Are the 2 Questions I Answer a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
Private Credit Can Be a Resilient Income Strategy for a Volatile Market: A Guide for Financial AdvisersAdvisers are increasingly turning to private credit such as asset-based and real estate lending for elevated yields and protection backed by tangible assets.
-
5 RMD Mistakes That Could Cost You Big-Time: Even Seasoned Retirees Slip UpThe five biggest RMD mistakes retirees make show that tax-smart retirement planning should start well before you hit the age your first RMD is due.
-
I'm a Wealth Adviser: My 4 Guiding Principles Could Help You Plan for Retirement Whether You Have $10,000 or $10 MillionRegardless of your net worth, you deserve a detailed retirement plan backed by a solid understanding of your finances.
-
A Retirement Triple Play: These 3 Tax Breaks Could Lower Your 2026 BillGood news for older taxpayers: Standard deductions are higher, there's a temporary 'bonus deduction' for older folks, and income thresholds have been raised.
