consensus estimate

Ulta Beauty (ULTA) Queues Up for Q2 Earnings: Things to Note

Ulta Beauty, Inc. ULTA is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 earnings on Aug 25. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,198 million, suggesting a rise of 11.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has risen by 1.2% in the past seven days to $4.90 per share, which indicates 7.5% growth from the figure reported in the prior-year quarter. The beauty product company has a trailing four-quarter earnings surprise of 49.8%, on average. ULTA delivered an earnings surprise of around 42% in the last reported quarter.

Ulta Beauty Inc. Price, Consensus and EPS Surprise

Ulta Beauty Inc. Price, Consensus and EPS Surprise

Ulta Beauty Inc. Price, Consensus and EPS Surprise

Ulta Beauty Inc. price-consensus-eps-surprise-chart | Ulta Beauty Inc. Quote

Factors to Note

Ulta Beauty has been benefiting from market share gains in major beauty categories for a while now, with skincare standing out due to consumers’ rising interest in self-care and the company’s focus on newness and innovation. Apart from these, the company has been seeing strength in the fragrance and haircare category, with product newness being a solid driver. Even the makeup category is on track for full recovery.

The company’s omnichannel strength has been another driver. Ulta Beauty has been enriching its omnichannel experience through launches like Beauty to Go, options like same-day delivery (in some stores) and unique salon services across stores, among others. The company’s buy online, pick up in store (BOPIS) continued to gain traction in the first quarter. Also, its alliance with Target has been yielding favorably.

That said, escalated costs are a concerning factor. The company witnessed elevated supply-chain costs in the first quarter due to higher wage rates, transportation costs and increased fuel rates. It expects elevated supply-chain costs to remain a

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  • August 22, 2022