Investment Bank Research Brief
The report analyzes that its spring and summer promotions effectively drove growth in customer traffic and website traffic, reflecting the success of the marketing strategy.
The report analyzes that its spring and summer promotions effectively drove growth in customer traffic and website traffic, reflecting the success of the marketing strategy. The company's management focuses on increasing the proportion of exclusive products and has launched TikTok Shop in early 2026. Goldman Sachs believes that the company's same-store sales expectations have room for upside, and its 2Q guidance is conservative. The current P/E ratio of 15.8 times is significantly lower than the 1-year and 3-year historical averages, and the valuation is attractive. One-sentence conclusion: Ulta Beauty is showing strong operational improvement momentum through effective promotions and expansion in emerging channels (TikTok Shop), and a valuation level well below historical averages provides a good margin of safety and upside potential. Positive/negative: Positive for Ulta Beauty (ULTA.US). The current stock price has partially reflected its recent performance improvement, but there is huge room for valuation repair, and earnings exceeding expectations are potential catalysts. Catalysts: 1) Second quarter of 2026 (2Q26) results to verify whether same-store sales and profit guidance are conservative; 2) Incremental sales contribution data brought by TikTok Shop; 3) Brand cooperation and exclusive product launches.