ULTA Stock Recent News

Ulta Beauty (ULTA) came out with quarterly earnings of $5.30 per share, missing the Zacks Consensus Estimate of $5.45 per share. This compares to earnings of $6.02 per share a year ago.

Ulta Beauty fell short of second-quarter expectations and trimmed its full-year guidance. Comparable sales for the second quarter fell 1.2%, compared to an 8% increase a year earlier.

JP Morgan analyst Christopher Horvers reiterated an Overweight rating on Ulta Beauty, Inc. ULTA, lowering the price forecast to $450 from $544.

Berkshire recently initiated a position in retailer Ulta Beauty. Shares of the cosmetics chain are down about 24% in 2024.

Ulta Beauty's shares have underperformed since April 2023 due to deteriorating fundamentals and a rich valuation. The company's growth slowdown is attributed to market saturation, increased competition from Sephora, and macroeconomic pressures affecting consumer spending. Despite recent setbacks, Ulta's loyalty program and strategic investments provide a margin of safety, with positive catalysts expected in 2H24.

Besides Wall Street's top -and-bottom-line estimates for Ulta (ULTA), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended July 2024.

Key Points: Warren Buffett purchased Ulta Beauty, taking advantage of its reduced stock price.

Ulta runs a differentiated retail business targeting a broad demographic of beauty shoppers. It has one of the best returns on capital in retail.

Sales trends have deteriorated recently but there's good reason to give Ulta a pass. Management thinks recent changes to marketing could reinvigorate sales in the coming quarters.

Berkshire Hathaway's BRK.B 0.83%increase; green up pointing triangle Warren Buffett has famously advised investors to be greedy when others are fearful. This past week, the company scooped up shares of Ulta Beauty ULTA 3.12%increase; green up pointing triangle, which landed in the discount bin after spooking the market.