Ulta Salon, Cosmetics & Fragrance, Inc.
The Strength in Beauty Products
Beauty care products are a particularly strong category in the retail sector. Jim Cramer, on CNBC’s Mad Money, commented after interviewing their CEO Mary Dillon, that ULTA Salon is currently the best retail model in the business. Compared to other cosmetic competitors such as Sephora, Sally Beauty, Avon (AVP) and E-commerce, they have a distinct advantage: ULTA offers salon services which have contributed significantly to their strong growth. Their product mix includes cosmetics, fragrance, skin, hair care products and salon services. ULTA is a one stop shop and consumers like that.
ULTA’s 52 week average shows shares climbed from $83.54 to a high of $158.97, almost doubling.
The daily chart went from $120 to a high of $155.91, +$35.91 (23%).
Average volume over the last 3 months for ULTA is 724,000.
Shares are trading above the 50 day moving average of $141 and above the 200 day moving average of $119.
The sentiment for ULTA is bullish. On 4/17/15 ULTA was upgraded to BUY rating by analyist Normura and the price target from $126 to $177. That day shares closed at $154.16. On 1/15/15 Oppenheimer upgraded the company to OUTPERFORM.
Just after earnings were announced on March 12 of this year, shares soared upward from $142 to $156.
The next earnings call is scheduled for June 9th.