Ulta Beauty Inc

ULTA: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$345.00	Rgvfpf	Gdlcgwsb

Narrow-Moat Ulta’s Q1 Looks Good as Beauty Demand Holds Strong; Shares Expensive

David Swartz

May 27, 2022

Despite higher costs and fears that inflation could dampen consumer spending, Ulta Beauty posted strong results in 2022’s first quarter as makeup sales (both prestige and mass) have recovered to pre-pandemic levels. We expect to lift our fair value estimate of $305 by a mid-single-digit percentage, but view Ulta’s shares (up about 7% in postmarket trading) as overvalued.

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