Beauty Stocks Face Steep Declines; Ulta Shows Potential Comeback

Beauty Sector Struggles: Retail stocks, including Ulta and e.l.f. Beauty, are seeing significant declines in 2025, but Ulta Beauty might be positioned for a recovery amidst industry challenges.

Date: 22-02-2025

AI Rating: 6

Earnings Per Share (EPS)
Ulta Beauty reported fiscal Q3 2025 EPS of $5.14, beating consensus estimates by $0.61. For the full fiscal year, Ulta expects EPS between $23.20 and $23.75, higher than previous forecasts and consensus estimates. In contrast, e.l.f. Beauty reported Q3 EPS of 74 cents, which missed estimates by 2 cents. Coty reported fiscal Q2 EPS of 11 cents, missing estimates by 10 cents.

Revenue Growth
Ulta's revenues rose 1.7% Year-over-Year (YoY) to $2.53 billion, outperforming estimates. e.l.f. Beauty saw impressive revenue growth of 31.2% YoY to $355.3 million but issued a lowered Q4 net sales outlook. Coty, however, experienced a 3.3% YoY revenue decline to $1.67 billion, falling short of expectations.

Net Income & Profit Margins
While specific net income figures were not disclosed, Ulta's stable performance and operating margins ranging from 12% to 15% suggest a healthy profitability level, aided by customer loyalty and diverse product offerings. e.l.f.'s operating struggles amid market fluctuations may affect its net income negatively.

Outlook Summary
Overall, Ulta retains a strong market position amidst a challenging sector landscape, contrasted by the struggles of e.l.f. and Coty, which could result in more volatility for their stock prices. The potential for Ulta to rebound may attract investors looking for growth opportunities.

Stocks: ULTA COTY ELF