Ulta Beauty (ULTA) is likely to report a "sluggish" Q3, amid normalizing beauty growth rates and competitive headwinds, but remains positioned to deliver on its fiscal 2024 financial targets, Oppenheimer said in a Tuesday note.
The company is set to release its fiscal Q3 results on Dec. 5. Ulta Beauty previously said it expects fiscal 2024 diluted earnings per share of $22.60 to $23.50 on net sales of $11 billion to $11.2 billion.
Oppenheimer said it estimates a 2% decline in Ulta Beauty Q3 comparable sales. In addition, the investment firm expects ongoing pressures from Kohl's (KSS)/Sephora store openings, slowing prestige beauty growth rates, and challenges in mass cosmetics to weigh on the company's delivery.
On the other hand, Oppenheimer also noted the company's "aggressive" promotional efforts and "solid" store conditions.
Oppenheimer reiterated its outperform rating on Ulta Beauty, with a price target of $435.
Price: 357.63, Change: -5.02, Percent Change: -1.38
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.