Valued at a market cap of $23.1 billion, Ulta Beauty, Inc. (ULTA) is the largest specialty beauty retailer in the U.S., offering a wide range of cosmetics, skincare, haircare, and salon services across more than 1,450 stores nationwide. Known for its mix of prestige and mass-market brands, Ulta also boasts a powerful loyalty program that drives around 95% of its sales. The Bolingbrook, Illinois-based company is expected to announce its fiscal Q2 earnings on Thursday, Sept. 4.

Ahead of this event, analysts project this beauty company to report a profit of $4.87 per share, down 8.1% from $5.30 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.

For the full year, analysts expect ULTA to report EPS of $23.42, down 7.6% from $25.34 in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026, rising 9.5% year over year to $25.64.

Shares of ULTA have climbed 41.7% over the past 52 weeks, outperforming both the S&P 500 Index’s ($SPX) 18.3% uptick and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 24.5% gain over the same time frame.

On May 29, ULTA stock rose 1.2% following the release of its Q1 earnings. Driven by increased comparable sales and new store contribution, its net sales soared 4.5% year-over-year to $2.8 billion, surpassing the Street’s estimates. Its gross profit increased 4.2% from the prior year’s quarter to $1.1 billion as well. ULTA’s adjusted EPS for the quarter came in at $6.70, surpassing the consensus estimates by 16.1%.

Wall Street analysts are moderately optimistic about ULTA’s stock, with a “Moderate Buy” rating overall. Among 26 analysts covering the stock, 10 recommend “Strong Buy,” two suggest “Moderate Buy,” 13 indicate “Hold,” and one gives a “Strong Sell” rating. The stock currently trades above its mean price target of $490.67.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com