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Ulta Beauty Posts Q4 Beat, Brushes Off Disappointing Outlook

The beauty retailer also issued weak full-year guidance

Deputy Editor
Mar 14, 2025 at 10:15 AM
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Ulta Beauty Inc (NASDAQ:ULTA) stock is surging, after reporting strong fourth-quarter earnings that topped Wall Street estimates. The company posted earnings of $8.46 per share, easily surpassing the consensus estimate of $7.10. Revenue also came in ahead of expectations at $3.49 billion, exceeding the projected $3.46 billion.

Despite the solid earnings beat, the beauty retailer issued weaker-than-expected full-year guidance, citing rising competition, internal missteps, and consumer uncertainty as key challenges. The company expects comparable sales to be flat or rise just 1% in 2025, trailing analyst expectations for 1.2% growth. Additionally, Ulta forecast lower-than-expected profits for the year ahead, as it focuses on restructuring efforts and investing in long-term growth.

At last glance, ULTA was up 7.2% at $337, as it attempts to rebound from yesterday's pre-earnings slide to $328.45 -- its lowest level since May 2021. The equity pared its year-to-date deficit to 23%, though it remains down more than 40% over the last 12 months.

No less than 12 analysts cut their price targets after the event. Wells Fargo adjusted the lowest, moving from $360 to $310 -- an 8% discount to Ulta Beauty stock's current perch. Meanwhile, the consensus 12-month average price target of $424.88 is a 27.2% premium to ULTA's current level of trading, leaving room for additional price-target cuts.

Options traders are chiming in, with 6,782 calls and 6,363 puts exchanged so far today, which is 7 times the volume typically seen at this point. The most active contract is the weekly 3/14 350-strike call, where new positions are being opened.

 
 

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