{"id":45762,"date":"2025-12-05T11:35:11","date_gmt":"2025-12-05T11:35:11","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/05\/ulta-beauty-stock-pattern-points-to-600-as-earnings-rise\/"},"modified":"2025-12-05T11:35:11","modified_gmt":"2025-12-05T11:35:11","slug":"ulta-beauty-stock-pattern-points-to-600-as-earnings-rise","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/05\/ulta-beauty-stock-pattern-points-to-600-as-earnings-rise\/","title":{"rendered":"Ulta Beauty stock pattern points to $600 as earnings rise"},"content":{"rendered":"
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Ulta Beauty stock surged by over 6% in the extended hours after the company published strong financial results, which demonstrated resilient demand in the industry. It rose to $566 from the closing price of $533, and is now about 83% from its lowest level this year.<\/p>\n

Ulta Beauty\u2019s business is doing well <\/h2>\n

Financial results released on Thursday showed that the beauty product retailer, which Warren Buffett invested in<\/a> last year is doing well in a difficult environment.<\/p>\n

Ulta Beauty’s revenue rose by 12.9% last quarter, partially helped by the Space NK acquisition and the openings of new stores. A double-digit revenue growth for a company in its industry is a good thing as it shows that demand is resilient.<\/p>\n

Ulta Beauty’s comparable sales rose 6.3%, while its gross profit rose 14.9% to $1.2 billion. This figure was ~40.4% of its revenue, higher than the previous 39.7%.<\/p>\n

Ulta Beauty’s growth has been good this year, with the nine-month revenue rising by 8.8% to $8.5 billion, and its net income falling to $796 million. The profit was lower than last year because of the Space NK buyout and a 15.1% increase in its expenses. The CEO said<\/a>: <\/p>\n

\u201cExciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels.\u201d<\/p>\n

Ulta continued with its share repurchase program, that has seen it reduce its outstanding shares by over $693 million. Data shows that the company has 44.8 million outstanding shares, down from 55 million in 2021, a move that has pushed its EPS much higher.<\/p>\n

However, there were some notable headwinds in this report. One of them was that its inventories rose by 16% to $2.7 billion. The management pointed to the new store openings and the Space NK acquisition. In most cases, a surge in inventories is usually a major headwind for a company.<\/p>\n

Another major headwind is that the company\u2019s short-term debt rose to $551 million from $199 million in the second quarter.<\/p>\n

The management expects that Ulta Beauty’s business will continue doing well, with the net sales expected to be $12.3 billion, higher than the upper side of the previous range at $12.1 billion.<\/p>\n

It also expects that the operating margin will be between 12.3% and 12.4%, higher than the previous estimate of between 11.9% and 12%.<\/p>\n

Ulta Beauty stock price technical analysis <\/h2>\n
Ulta stock chart | Source: TradingView<\/a><\/figcaption><\/figure>\n

The weekly chart shows that the Ulta Beauty stock price has held steady in the past few months, moving from a low of $308 in March to a high of $572 this year.<\/p>\n

Ulta shares have remained above all moving averages, and has slowly formed a cup-and-handle chart pattern, which often leads to more upside over time. It is now trading at the shoulders section.<\/p>\n

Therefore, the stock will likely continue rising as bulls target the important resistance level at $600. <\/p>\n

The bullish Ulta stock price will become invalid if it drops below the important support at $492. <\/p>\n

The post Ulta Beauty stock pattern points to $600 as earnings rise<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Ulta Beauty stock surged by over 6% in the extended hours after the company published strong financial results, which demonstrated resilient demand in the industry. It rose to $566 from the closing price of $533, and is now about 83% from its lowest level this year. Ulta Beauty\u2019s business is doing well  Financial results released <\/p>\n","protected":false},"author":1,"featured_media":45763,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-45762","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=45762"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/45763"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=45762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=45762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=45762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}