/Ulta%20Beauty%20Inc%20shop%20location%20by-%20M_%20Suhail%20via%20iStock.jpg)
With a market cap of $23.4 billion, Ulta Beauty, Inc. (ULTA) is a leading specialty beauty retailer in the United States and Mexico, offering a wide range of branded and private label products across cosmetics, skincare, haircare, and fragrance. The company also provides salon and beauty services through its stores, website, and mobile app.
The Bolingbrook, Illinois-based company is set to announce its fiscal Q3 2025 results soon. Ahead of this event, analysts expect Ulta Beauty to report an EPS of $4.45, down 13.4% from $5.14 in the year-ago quarter. However, it has surpassed Wall Street's earnings estimates in the last four quarters.
For fiscal 2025, analysts forecast the beauty products retailer to report an EPS of $24.33, a 4% decline from $25.34 in fiscal 2024. Nevertheless, EPS is anticipated to rebound and grow 10.8% year-over-year to $26.95 in fiscal 2026.
Shares of Ulta Beauty have surged 36.8% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 18.1% gain and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 19.5% return over the period.
Shares of Ulta Beauty fell 7.1% following its Q2 2025 results on Aug. 28. While net sales rose 9.3% to $2.79 billion and EPS increased 9.1% to $5.78, operating margin slipped to 12.4% due to higher SG&A expenses. Additionally, management’s cautious tone about consumer demand in the second half of 2025 and a 20.5% increase in inventory to $2.4 billion raised concerns.
Analysts' consensus view on ULTA stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 27 analysts covering the stock, 13 recommend "Strong Buy," two suggest "Moderate Buy," 11 indicate “Hold,” and one advises "Strong Sell." The average analyst price target for Ulta Beauty is $589.48, suggesting a potential upside of nearly 14% from current levels.
