ULTA - Ulta Beauty: Unexpected International Plan And Underwhelming Guidance
2024-03-18 07:30:00 ET
Summary
- Ulta Beauty ended 2023 on an underwhelming note, with flaws in its print, including lackluster guidance, low comparable sales, and a questionable international expansion strategy.
- ULTA stock recovered to a nearly 20x P/E despite no material improvement in fundamentals, leading to a Hold rating.
- Ulta's international expansion plans in Mexico through a franchise model are unlikely to result in significant growth acceleration in the near to mid term.
Ulta Beauty ( ULTA ), one of the leading beauty retailers in the U.S., ended 2023 on an underwhelming note.
Despite results that beat expectations, there were several flaws in the print, including lackluster guidance, low comparable sales, and a questionable international expansion strategy....
Ulta Beauty: Unexpected International Plan And Underwhelming Guidance