Ulta Beauty, Inc. (ULTA) shares are trading lower on Friday after the company issued a revised outlook for fiscal year 2024, citing a more cautious outlook and weaker first-half trends. The beauty retailer lowered its guidance for adjusted earnings per share (EPS) and net sales, and reported second-quarter earnings that fell short of analyst expectations.
Ulta’s adjusted EPS guidance is now between $22.60 and $23.50, down from a previous forecast of $25.20 to $26. The company also lowered its net sales guidance to a range of $11 billion to $11.2 billion, compared to the previous outlook of $11.5 billion to $11.6 billion.
In the second quarter, Ulta reported EPS of $5.30, missing analyst estimates of $5.55, and revenue of $2.55 billion, falling short of the $2.61 billion consensus. While net sales increased 0.9% year-over-year, comparable sales declined by 1.2% compared to the same period last year. The company also reported operating income of $329.2 million and net income of $252.6 million.
During the second quarter, Ulta opened 17 new stores, relocated one store, remodeled nine stores, and closed one store.
Following the earnings report, several analysts adjusted their price targets for Ulta Beauty. Bank of America Securities maintained a Neutral rating and lowered its price target from $425 to $380. Raymond James downgraded Ulta Beauty from a Strong Buy to an Outperform rating and lowered its price target from $500 to $450. Evercore ISI Group maintained an Outperform rating and lowered its price target from $430 to $420. Oppenheimer maintained an Outperform rating and lowered its price target from $450 to $435. TD Cowen maintained a Buy rating and lowered its price target from $500 to $395. Stifel maintained a Hold rating and lowered its price target from $475 to $385.
At the time of writing, Ulta Beauty shares are trading down 2.65% at $357.85, according to data from Benzinga Pro.
