Ulta Beauty (ULTA, Financial) has announced itself as the official beauty retail partner for Beyoncé's highly anticipated COWBOY CARTER TOUR. This collaboration follows the successful exclusive launch of Beyoncé's hair care line, CECRED. The partnership offers fans a unique summer experience, blending beauty, artistry, and self-expression.
As part of this collaboration, Ulta Beauty will provide special access to beauty looks inspired by the COWBOY CARTER TOUR, featuring curated product assortments and immersive experiences. Shoppers will also have the chance to explore Beyoncé's renowned beauty brands, highlighted by the limited-time retail launch of her sought-after fragrance, CE LUMIERE by Beyoncé Parfums. This fragrance will be available in select Ulta Beauty stores and online via ulta.com.
The campaign will introduce seven distinct beauty looks, each inspired by a different tour stop. These looks are created in collaboration with local influencers, and will be showcased in Ulta Beauty stores, on their online platform, and across social media, as the tour travels across the country.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Ulta Beauty Inc (ULTA, Financial) is $413.26 with a high estimate of $526.00 and a low estimate of $310.00. The average target implies an upside of 7.39% from the current price of $384.83. More detailed estimate data can be found on the Ulta Beauty Inc (ULTA) Forecast page.
Based on the consensus recommendation from 31 brokerage firms, Ulta Beauty Inc's (ULTA, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ulta Beauty Inc (ULTA, Financial) in one year is $558.64, suggesting a upside of 45.17% from the current price of $384.83. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ulta Beauty Inc (ULTA) Summary page.
ULTA Key Business Developments
Release Date: March 13, 2025
- Net Sales: Decreased 1.9% to $3.5 billion for the fourth quarter.
- Comparable Sales: Increased 1.5% for the 13-week period.
- Gross Margin: Increased 50 basis points to 38.2% for the quarter.
- SG&A Expenses: $816 million, $5 million lower than last year.
- Operating Profit: Approximately flat with last year, with an operating margin increase of 30 basis points to 14.8% of sales.
- Diluted EPS: Increased 4.7% to $8.46 for the quarter.
- Full-Year Net Sales: Increased 0.8% to $11.3 billion.
- Full-Year Comparable Sales: Increased 0.7%.
- Full-Year Gross Margin: Deleveraged 30 basis points to 38.8%.
- Full-Year Operating Profit: 13.9% of sales compared to 15% in fiscal 2023.
- Full-Year Diluted EPS: Decreased 2.7% to $25.34 per share.
- Cash and Cash Equivalents: $703 million at the end of the quarter.
- Inventory: Increased 13% to $2 billion.
- Cash from Operations: Generated more than $1.3 billion.
- Stock Buyback Program: Returned $1 billion in capital to shareholders.
- 2025 Net Sales Outlook: Expected between $11.5 billion and $11.6 billion.
- 2025 Operating Margin Outlook: Expected between 11.7% and 11.8% of net sales.
- 2025 Diluted EPS Outlook: Expected between $22.50 and $22.90 per share.
- 2025 CapEx: Planned between $425 million and $500 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ulta Beauty Inc (ULTA, Financial) finished the year ahead of expectations, with strong revenue growth and better-than-expected performance across the P&L.
- The company successfully launched 40 new brands, including exclusive ones like XO Khloé and WYN BEAUTY, enhancing its assortment.
- Ulta Beauty Inc (ULTA) expanded its accessibility by opening 60 net new stores and 100 new Ulta Beauty at Target shop-in-shop locations.
- The loyalty program grew by 3% to a record high of 44.6 million members, indicating strong customer engagement.
- The company initiated plans to expand internationally, including launching in Mexico and the Middle East in 2025.
Negative Points
- Ulta Beauty Inc (ULTA) lost market share in the beauty category for the first time in 2024, highlighting increased competitive pressure.
- The in-store presentation and guest experience were not as strong as desired, indicating execution challenges.
- Operating profit is expected to decrease in the low-double-digit range in 2025 due to strategic investments and inflationary pressures.
- The company anticipates a transitional year in 2025, with flat to 1% comp sales growth, reflecting cautious guidance amidst consumer uncertainty.
- Gross margin is expected to deleverage in 2025, primarily due to store occupancy and supply chain costs, despite efforts to optimize costs.
