Ulta Beauty, Inc. ULTA is moving beyond traditional retail by integrating social commerce and advanced digital tools into its guest ecosystem. The launch of the TikTok Shop was strategically centered on its Only at Ulta exclusive brands. To support the initiative, the company hosted its first TikTok shoppable livestream during the Ulta Beauty World event, generating more than 5 million impressions and expanding customer engagement through social commerce. To enhance convenience, the company expanded same-day delivery through Uber Eats and introduced Buy Now, Pay Later options through Klarna. Additionally, Ulta Beauty is pioneering agentic commerce by integrating with Google’s Gemini and launching Ulta AI, an online shopping agent designed to personalize discovery and shopping experiences.
The company is scaling emerging businesses such as Ulta Beauty Media and Marketplace to diversify revenue streams. Media recently introduced a YouTube enhanced measurement product to provide deeper insights for brand partners, while the Marketplace has expanded to offer more than 325 brands and 8,000 SKUs. Furthermore, Ulta Beauty is broadening its reach in the wellness category by launching brands like Gruns and Medicine Mama, focusing on nutrition, supplements and intimate skincare to integrate into consumers' essential routines.
The company continued to expand its international footprint with new store openings across key markets. Space NK maintained healthy, balanced growth while expanding its customer base and market share in the U.K. and Ireland. Expansion also progressed in Mexico with two new stores, while franchise partner Alshaya opened the third Middle East location at Dubai Mall. Overall, Ulta Beauty’s expansion into social commerce, AI-powered experiences, media, wellness and international markets is creating new growth avenues beyond traditional retail.
The Zacks Rundown for ULTA
The company’s shares have lost 0.1% in the past year compared with the industry’s 4% decline.
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From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.77, higher than the industry’s average of 14.67. ULTA currently carries a Zacks Rank #3 (Hold).
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The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 11.8% and 11.3%, respectively.
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Stocks to Consider
Some better-ranked stocks have been discussed below:
Five Below, Inc. FIVE operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 14.3% and 30.4%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. EL manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. IPAR manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company holds a Zacks Rank of 2.
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
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The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
Interparfums, Inc. (IPAR): Free Stock Analysis Report
Five Below, Inc. (FIVE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).