Ulta Beauty Maintains Neutral Rating Despite Reduced EPS Forecast

BofA Securities analyst Lorraine Hutchinson reaffirms a Neutral rating on Ulta Beauty, Inc. (ULTA) with a price target of $380. While the analyst lowered the FY25 EPS estimate due to anticipated slower growth, the company remains optimistic about its long-term prospects, emphasizing initiatives to strengthen its market position and reignite growth. Ulta Beauty also announced a new $3 billion share buyback program, projected to contribute significantly to EPS growth.

Ulta Beauty Unveils Long-Term Strategy, Reaffirms FY24 Guidance, Shares Dip

Ulta Beauty has outlined its long-term growth plan, aiming for profitable growth through four key areas: assortment, experience, access, and loyalty. The company also reaffirmed its fiscal year 2024 guidance while outlining its plans for future expansion and shareholder value creation. Despite the announcement, ULTA shares are trading lower, reflecting investor sentiment about the near-term challenges and the overall market conditions.

Ulta Beauty Stock Sinks Below Key Threshold Amidst Challenges

Ulta Beauty’s stock price has dipped below crucial technical levels, signaling potential further decline. The company faces headwinds from slowing prestige beauty growth, changing consumer behavior, ERP system disruptions, and increased competition. While ULTA is focusing on strengthening its position through initiatives like loyalty program enhancements and omnichannel expansion, these efforts might not be enough to overcome the current obstacles. Investors should proceed with caution.

Ulta Beauty Cuts 2024 Guidance, Shares Fall on Earnings Miss

Ulta Beauty, Inc. (ULTA) stock is trading lower on Friday after the company lowered its fiscal year 2024 guidance, citing weaker first-half trends and a more cautious outlook. The company also reported lower-than-expected second-quarter earnings, missing analyst estimates for both earnings per share and revenue. This news sent Ulta’s stock down over 2% in early trading.

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