Ulta Beauty: Management meeting signals confidence in consistent earnings algorithm

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Ulta Beauty: Management meeting signals confidence in consistent earnings algorithm

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Ulta Beauty

Management meeting signals confidence in

consistent earnings algorithm

Reiterate Rating: BUY | PO: 685.00 USD | Price: 480.12 USD

F26 continues to be about driving profitable growth 26 June 2026

We hosted a virtual meeting with CFO Chris DelOrefice and SVP of Investor Relations Equity

Kiley Rawlins. Management continued to emphasize that 2026 is a year of profitable

growth, with ULTA harvesting returns on prior investments while still fueling the Lorraine Hutchinson, CFA Research Analyst

business to capture market share and support future growth. We are encouraged by the BofAS

tone around SG&A discipline and remain confident in ULTA’s ability to deliver on its +1lorraine.hutchinson@bofa.com646 855 0951

profitability targets, including slight margin expansion; we reiterate our Buy rating. Ryan Abbadi

Research Analyst

Profitable growth doesn’t mean not investing BofAS+1 646 855 2279

Management reiterated its messaging about expenses: it will drive growth, but not at ryan.k.abbadi@bofa.com

the expense of profitability. Investments made in F24/25 built a more robust data

infrastructure that ULTA can use to de-risk capital commitments and sharpen

personalization. F25 operating margin of 12.4% was already above ULTA’s prior LT Stock Data

target, and management underscored that it is “not going backwards.”

Price 480.12 USD

Price Objective 685.00 USDTikTok Shop and BBWI expand top of funnel

ULTA has launched TikTok Shop and a BBWI partnership as acquisition vehicles that can Date Established 8-Jan-2026

also support revenue over time. TTS launched in March and is helping ULTA reach new Investment Opinion B-1-9

audiences, particularly Gen Z.