Ulta Beauty (NASDAQ:ULTA) is at a crossroads, balancing strong sales momentum with lingering questions about expense management. Trading at $504.05 with a market cap of $21.91 billion, the stock is down 16.69% year-to-date despite solid operational fundamentals.
The company reported comparable store sales growth of 6.3% in Q3 fiscal 2025, driven by increases in both average ticket size and transaction volume. Revenue for the trailing twelve months reached $12.39 billion, with a gross profit margin of 43.05% and EPS of $25.64.
Analysts project EPS of $25.50 for fiscal 2026 and $28.50 for fiscal 2027. Some believe the company could achieve $30 EPS in 2026 if trends continue. Investments in China and retail infrastructure are expected to drive future growth.
However, a lack of specific SG&A guidance has created investor uncertainty. Past issues with expense discipline compound these concerns. Analyst price targets range from $647 to $790, reflecting upside potential.
