Stock Pulse
Ulta Beauty (ULTA) paused expansion of its Target shop-in-shops for 2025 to focus on operational efficiency and maximize existing store value, following declining sales and increased competition [2]. Despite recent stock underperformance [3] and lower projected EPS for Q1 and FY2025 [1], the stock saw a short-term boost, outperforming the S&P 500 [1]. Positive factors include strong same-store sales growth, a high ROIC, and the exclusive launch of Beyoncé's haircare brand, Cécred [4], [5]. UBS analysts maintain a positive outlook due to stabilizing market share and a robust loyalty program [6], [7]. While macroeconomic pressures and competition persist, Ulta is focusing on digital expansion, store growth, and enhancing the customer experience [3]. An insider transaction saw a significant stock option exercise and sale by a key executive [9].