{
}
UBS analysts have identified a favorable outlook for Ulta Beauty, citing improving market share trends and reduced competitive pressures. With Ulta's market share stabilizing at around 14% and a strong loyalty program boasting 44.6 million members, the firm believes the risk-reward for Ulta shares is skewed to the upside. Additionally, concerns over tariff impacts are minimal, as major brand partners maintain diverse manufacturing operations.
UBS has maintained a Buy rating on Ulta Beauty, setting a price target of $490, while the stock currently trades at $380.23. Analysts noted signs of market share stabilization and manageable tariff impacts, despite some downward revisions in earnings expectations. While Ulta reported strong earnings, guidance for 2025 and 2026 suggests potential challenges ahead, prompting mixed reactions from other analysts regarding the company's competitive landscape and strategic initiatives.
Off-price retailers are significantly outperforming department stores in sales and profitability, capturing 59.5% of total sales and 76.6% of profits, according to UBS. The firm rates TJX Companies and Burlington Stores as Buys, while maintaining Sell ratings on Macy’s, Dillard’s, and Kohl’s due to weaker growth prospects. Despite a valuation premium, UBS expects off-price retailers to continue their strong performance and gain market share.
Off-price retailers are significantly outperforming department stores in both sales and profitability, capturing 59.5% of total sales and 76.6% of profits, according to UBS. The firm maintains Buy ratings for TJX Companies and Burlington Stores, while remaining bearish on department stores like Macy’s and Kohl’s due to weaker growth prospects. Despite higher valuations for off-price stocks, UBS expects their strong fundamentals to sustain this trend.
Ulta Beauty exceeded fiscal third-quarter earnings expectations, reporting $5.14 per share against the anticipated $4.54, and revenue of $2.53 billion, surpassing the $2.50 billion forecast. The retailer raised its full-year sales outlook to $11.1-$11.2 billion and earnings to $23.20-$23.75 per share, despite earlier concerns about cooling demand and increased competition. Shares rose approximately 10% in after-hours trading, although the stock is down about 19% year-to-date.
As the holiday shopping season approaches, retailers face a stark divide in performance, with Target, Kohl’s, and Best Buy reporting disappointing results, while Walmart and Abercrombie & Fitch thrive. Consumers are increasingly selective, prioritizing value and practical gifts, leading to cautious spending amid ongoing inflation. Despite a projected increase in holiday spending, retailers are bracing for challenges, with some already adjusting forecasts downward.
Kohl's Corp
Companies
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
ulta beauty shares poised for growth amid stabilizing market share trends
Euro
United States Dollar
Ulta Beauty, Inc.
Amazon.com, Inc.
Kohl's Corp
The Estée Lauder Companies Inc.
FRA
USA
Show more
17:10 02.04.2025
ubs maintains buy rating on ulta beauty with target price of 490
Euro
United States Dollar
Kohl's Corp
Ulta Beauty, Inc.
Amazon.com, Inc.
The Goldman Sachs Group, Inc.
USA
Show more
16:23 02.04.2025
off-price retailers outperform department stores in sales and profitability trends
United States Dollar
Macy's, Inc.
Kohl's Corp
Burlington Stores, Inc.
Dillard's, Inc.
Nordstrom, Inc.
Ross Stores, Inc.
TJX Companies Inc
USA
Show more
20:04 31.03.2025
off-price retailers outperform department stores in sales and profitability trends
Macy's, Inc.
Kohl's Corp
Burlington Stores, Inc.
Dillard's, Inc.
Nordstrom, Inc.
Ross Stores, Inc.
TJX Companies Inc
USA
Show more
19:37 31.03.2025
Ulta Beauty Surpasses Earnings Expectations and Raises Full-Year Outlook
United States Dollar
Target Corporation
Kohl's Corp
Ulta Beauty, Inc.
MACYS
Walmart Inc.
USA
Dave Kimbell
Show more
22:19 05.12.2024
retailers face challenges as holiday shopping season begins with mixed results
United States Dollar
Target Corporation
Kohl's Corp
MACYS
Walmart Inc.
Abercrombie & Fitch Co.
Nordstrom, Inc.
USA
Rick Gomez
Scott Lipesky
Erik Nordstrom
John David Rainey
Marshal Cohen
Gabrielle Fonrouge
Show more
13:30 29.11.2024
Trending
Subcategory
Stock Market Updates
Corporate News
Industry Trends
Finance Mergers & Acquisitions
Financial Scams and Security
Global Financial Events
Retail and Consumer Goods
Market Analysis and Predictions
Banking Regulations
Hedge Funds & Private Equity
Supply Chain Management
CEO Changes
Global Trade Developments
AI Innovations
Workplace Trends
Startups & Entrepreneurship
Funding Rounds & Investments
Cryptocurrency Trends
Industry Mergers & Acquisitions
Real Estate Investments
Countries:
Companies:
JPMorgan Chase & Co.
Barclays PLC
NVIDIA Corporation
Morgan Stanley
The Goldman Sachs Group, Inc.
Tesla, Inc.
Bank of America Corporation
Citigroup Inc.
Wells Fargo & Company
Apple Inc.
Netflix, Inc.
Huawei Technologies CO. Ltd.
The Charles Schwab Corporation
Tesmec S.p.A.
Geode Capital Management LLC
State Street Corporation
HSBC Holdings plc
Credit Suisse Real Estate Fund Siat
Charles Schwab Investment Management Inc.
Broadcom Inc.
Currencies:
United States Dollar
Chinese Yuan
Indian Rupee
British Pound Sterling
Euro
Swiss Franc
United Arab Emirates Dirham
South Korean Won
Canadian Dollar
Offshore Chinese Yuan
Japanese Yen
Azerbaijani Manat
New Taiwan Dollar
Saudi Riyal
Singapore Dollar
Vietnamese Đồng
Hong Kong Dollar
People: