Valued at a market cap of $17.4 billion, Ulta Beauty, Inc. (ULTA) is a specialty beauty retailer that offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools. The Bolingbrook, Illinois-based company is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Thursday, May 29.

Prior to this event, analysts project this beauty salon company to report a profit of $5.73 per share, down 11.4% from $6.47 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $8.46 per share in the previous quarter exceeded the consensus estimates by a notable margin of 19.2%. 

For the full year, analysts expect ULTA to report EPS of $23.02, down 9.2% from $25.34 in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026 and grow by 10.8% year over year to $25.51.

Shares of ULTA have declined 4.9% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 8.4% uptick, and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.4% gain over the same time frame.

On Mar. 13, ULTA delivered better-than-expected Q4 results, prompting a 13.7% rise in its share price in the following trading session. Although the company's revenue declined 1.9% year-over-year to $3.5 billion, primarily due to the benefit of an extra week in fiscal 2023, the figure still came in marginally above the consensus estimates. The revenue beat was primarily driven by contributions from new store openings and higher comparable store sales. Additionally, improved gross and operating profit margins contributed to a 4.7% year-over-year increase in its profit to $8.46 per share, which handily outperformed Wall Street expectations. 

Looking ahead to fiscal 2025, ULTA expects net sales to be between $11.5 billion and $11.6 billion, and projects EPS in the range of $22.50 and $22.90. 

Wall Street analysts are moderately optimistic about ULTA’s stock, with a “Moderate Buy" rating overall. Among 28 analysts covering the stock, 12 recommend "Strong Buy," two suggest “Moderate Buy,” 13 indicate “Hold,” and one gives a “Strong Sell” rating. The mean price target for ULTA is $417.96, which indicates an 8.2% potential upside from the current levels.