Ulta Beauty set to report Q2 results after market close, with earnings and revenue outlook seen softening year over year
Ulta Beauty, the Bolingbrook, Illinois-based beauty retailer, is scheduled to release its fiscal second-quarter results after the closing bell on Aug. 28. Market expectations call for earnings of about $5.04 per share on revenue near $2.67 billion, compared with $5.30 per share and $2.55 billion in the year-ago period, according to industry data.
In a move to broaden its footprint, Ulta Beauty completed a strategic acquisition on July 10 to enter the United Kingdom by purchasing Space NK Limited, a leading British beauty retailer known for its prestige product assortment and customer experience.
Following the news, Ulta Beauty’s stock rose about 1.5% to close at $533.81 the previous trading session, reflecting ongoing investor interest as the company reports earnings and provides updated guidance.
Analyst outlooks around Ulta remain constructive, with several firms maintaining bullish ratings and setting higher price targets:
– Canaccord Genuity: Buy rating; target raised to $630
– Telsey Advisory Group: Outperform rating; target raised to $590
– JP Morgan: Overweight rating; target raised to $600
– Barclays: Upgraded to Overweight; target raised to $589
– UBS: Buy rating; target raised to $640
What to watch as Ulta reports:
– The quarter’s earnings trajectory in light of higher expectations for revenue and whether gross margins hold against promotional activity and cost pressures.
– The contribution and integration progress of the Space NK acquisition in the UK, and how it may influence Ulta’s international expansion strategy.
– Guidance for the upcoming quarters, including any updates to revenue growth, margin expectations, and store or digital initiatives.
Summary: Ulta Beauty is poised to unveil its second-quarter results with expectations for a modest year-over-year improvement in revenue but a softer earnings print versus the prior year. The UK expansion through Space NK signals an important international growth element, and analysts remain broadly positive on Ulta’s trajectory, citing multiple price-target increases and continued bullish ratings.
Additional notes:
– The combination of a familiar omnichannel model and new international exposure could influence Ulta’s long-term growth strategy if the Space NK integration progresses smoothly and resonates with premium beauty consumers.
– Investors will be listening closely for any color on cost management, margin trends, and the potential impact of international operations on overall profitability.
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