Ulta Beauty shares have fallen 24.5% over the past six months, underperforming the Zacks industry's 18.1% decline and the S&P 500's 7.7% gain. The company faces near-term pressures from economic uncertainty, persistent inflation, and higher fuel costs, which are driving consumers to prioritize value and pushing up transportation expenses. SG&A expenses rose 14.6% year over year to $815 million in the first quarter, partly due to investments in the Ulta Beauty Unleashed strategy. Management expects growth to moderate in the second half of the year as it laps stronger prior-year performance. Despite these challenges, Ulta Beauty continues to benefit from its nearly 47-million-member loyalty program, digital and social commerce initiatives, international expansion in markets such as Mexico and the Middle East, and AI-driven personalization. The Zacks Consensus Estimate for current-year earnings per share has edged up by one cent to $28.67 over the past seven days, and the stock carries a Zacks Rank of 3, or Hold.
Ulta Beauty IncConsumers prioritizing value due to inflation and economic uncertainty, pressuring Ulta's sales.
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