11:30 AM EST, 11/26/2024 (MT Newswires) -- 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 ( ULTA ) 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 ( ULTA ) 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 ( ULTA ), with a price target of $435.
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