Ulta Beauty Forecasts EPS Dip in 2025, but Strong Recovery Expected in 2026
Ulta Beauty, Inc. (ULTA), a leading US and Mexican specialty beauty retailer, is expected to report a decline in earnings per share (EPS) for fiscal 2025, according to analysts. Despite this, the company's stock maintains a cautiously optimistic outlook.
Analysts predict Ulta Beauty's EPS to drop 4% to $24.33 in fiscal 2025. However, they anticipate a rebound in the following year, with EPS expected to grow 10.8% to $26.95 in fiscal 2026. The company's shares have surged 36.8% over the past 52 weeks, outperforming market benchmarks.
In the recent quarter, Ulta Beauty's shares fell 7.1% following its Q2 2025 results. This was due to a decrease in operating margin and concerns about consumer demand and inventory levels. Looking ahead, analysts expect EPS to decrease 13.4% to $4.45 in Q3 2025. Despite these fluctuations, the average analyst price target for Ulta Beauty is $589.48, indicating a potential upside of nearly 14% from current levels. Kecia Steelman, who was promoted to CEO in January 2025, now leads the company during this financial phase.
Ulta Beauty faces a temporary earnings dip in fiscal 2025, but analysts anticipate a strong recovery in the following year. Despite recent stock fluctuations, the company's long-term prospects remain positive, with a cautiously optimistic outlook and a potential upside in share price.
