Ulta Beauty is in the Eye of the Beholder – C-Suite Transitions

Ulta Beauty (ULTA): $404.06

Market Cap: $18.73B

EV: $20.69B

Unlike Sephora, owned by LVMH, and known for its global presence and luxury focus, Ulta remains U.S.-based and caters to a wider price spectrum. In a competitive market that includes Sally Beauty Holdings (SBH), which specializes in professional-grade beauty supplies, Ulta stands out with its inclusive product offerings and in-store services, effectively reaching a broader audience.

Key Insights

• Growth Projections: Ulta targets double-digit EPS growth by 2026, despite providing weak guidance for FY2024 and FY2025.
• Store Expansion: Over 70% of capital expenditures are directed towards store expansion, up from 50%, with investments expected to yield over 20% returns.
• Revenue Growth: Net sales increased by 1.7% last quarter to $2.53 billion, primarily driven by new store contributions, though growth has decelerated compared to previous years.

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