01:10 PM EDT, 05/07/2024 (MT Newswires) -- Ulta Beauty ( ULTA ) is likely to lower its full-year guidance, Oppenheimer said in a note Tuesday.

Ulta Beauty ( ULTA ) is scheduled to report Q1 results May 30.

The investment firm expects the lower guidance, based on the company's cautious commentary recently on both category and competitive challenges. Oppenheimer is adopting an even more conservative stance than its previous update in early April, factoring in the potential for subdued comparable sales growth for the remainder of 2024.

The company's Q1 EPS is now expected to be $5.87, compared to consensus of $6.30. Oppenheimer recommended a more aggressive cost-cutting strategy for sustaining margins amid rising competition in the prestige and specialty beauty sectors.

Oppenheimer adjusted its price target for Ulta Beauty ( ULTA ) to $475 from $500 with an outperform rating.

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