11:14 AM EDT, 08/20/2024 (MT Newswires) -- Ulta Beauty ( ULTA ) is expected to miss Q2 earnings estimates and lower its full-year guidance amid a "slowdown" in growth and management's "aggressive" promotional activity, Oppenheimer said Tuesday.

The beauty retailer is scheduled to report Q2 results on Aug. 29.

Oppenheimer expects earnings per share of $4.99, below the Street estimate of $5.52.

"This reflects a slowdown/normalizing growth in parts of [Ulta Beauty's ( ULTA )] offering coupled with management's aggressive July promotional efforts to drive traffic," Oppenheimer analysts Rupesh Parikh and Erica Eiler said in a note to clients.

Industry and competitive headwinds remained for Ulta during Q2, as the beauty retailer experienced slower growth and intensified competition from Kohl's (KSS) and Sephora partnership, Target (TGT), and Amazon (AMZN), Oppenheimer said.

Oppenheimer believes Berkshire Hathaway's recently announced stake acquisition in Ulta could "provide downside support for shares".

Oppenheimer maintained an outperform rating on Ulta's stock with a $450 price target.

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