BofA Securities analyst Lorraine Hutchinson reiterated the Neutral rating on Ulta Beauty, Inc. (NASDAQ:ULTA) with a price objective of $380.
The analyst reduced the FY25 EPS estimate by 8% to $22.41, reflecting a 3% decline due to more store openings offset by lower margins.
The company projects annual sales growth of 4-6%, comparable sales growth of 3-4%, and low-double-digit EPS growth.
Per Hutchinson, FY25 may be a transitional year, with results falling short of long-term targets as the company navigates softer sales while investing in initiatives to strengthen its market position and reignite growth.
Additionally, the company announced a new $3 billion share buyback program, which is projected to contribute 500 basis points to annual EPS growth, Hutchinson notes.
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The analyst emphasizes that the company will concentrate on enhancing its product assortment through new offerings and brand partnerships, which drive 20%-30% of annual revenue; management has indicated a strong pipeline.
Additionally, the focus will be on improving the in-store and online guest experience, boosting the loyalty program, expanding social media presence, and refining the promotional strategy.
The analyst notes that investment will be directed toward marketing, loyalty initiatives, sampling, digital exposure, major events, employee training, and in-store activities.
The analyst lowered the FY26 EPS estimate to $22.41 from $24.44.
Price Action: ULTA shares are trading lower by 0.10% to $372.82 at last check Thursday.
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美银证券分析师洛林·哈钦森重申了对Ulta Beauty, Inc.(纳斯达克股票代码:ULTA)的中性评级,目标股价为380美元。
该分析师将25财年的每股收益预期下调了8%,至22.41美元,这反映了3%的下降,这是由于更多的门店开业被较低的利润率所抵消。
该公司预计年销售额增长4-6%,可比销售增长3-4%,每股收益将实现低两位数的增长。
根据哈钦森的说法,25财年可能是过渡性的一年,其业绩未达到长期目标,原因是该公司在销售疲软的同时投资于巩固其市场地位和重启增长的举措。
此外,哈钦森指出,该公司宣布了一项新的30亿美元股票回购计划,预计该计划将为每股收益增长贡献500个基点。
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该分析师强调,该公司将集中精力通过新产品和品牌合作伙伴关系来增强其产品种类,这将推动年收入的20%-30%;管理层表示有强大的产品线。
此外,重点将放在改善店内和在线顾客体验、加强忠诚度计划、扩大社交媒体影响力以及完善促销策略上。
分析师指出,投资将用于营销、忠诚度计划、抽样、数字曝光、重大活动、员工培训和店内活动。
该分析师将26财年的每股收益预期从24.44美元下调至22.41美元。
价格走势:周四最后一次检查时,ULTA股价下跌0.10%,至372.82美元。
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