Ulta Beauty laps retail peers with double-digit comparable sales mark

Aug. 26, 2022 7:00 AM ETUlta Beauty, Inc. (ULTA)By: Clark Schultz, SA News Editor4 Comments

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Ulta Beauty (NASDAQ:ULTA) is being sized up favorably on Wall Street after defying some of the macro pressures impacting retailer sector peers to record double-digit comparable sales growth in Q2.

William Blair resumed coverage on Ulta Beauty (ULTA) with an Outperform rating after taking in the retailer's Q2 earnings report.

The bullish view is based on ULTA's resilient business model and solid long-term growth potential.

Analyst Dylan Carden and team believe that Ulta is well positioned to continue to take meaningful market share over time and that the cosmetics category is poised for a continued rebound with greater newness introduced.

Deutsche Bank reiterated its positive view on Ulta Beauty (ULTA), noting that all key beauty categories demonstrated strength with double-digit growth for the second quarter in a row. "Encouragingly, ULTA’s business remains resilient with no sign of consumer trade down, despite vendor price increases that contributed ~300 bps to comp growth," noted analyst Krisztina Katai.

Wells Fargo called Ulta Beauty (ULTA) a relative star within retail coverage so far in 2022 after it churned out results well above plan.

Bank of America said Ulta's guidance for mid single-digits comparable sales growth in the second half may be conservative.

Shares of ULTA rose 3.12% premarket to $432.24.

Dig into the ULTA earnings call transcript.

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