For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Ulta Beauty (ULTA) ten years ago? It may not have been easy to hold on to ULTA for all that time, but if you did, how much would your investment be worth today?
Ulta Beauty's Business In-Depth
With that in mind, let's take a look at Ulta Beauty's main business drivers.
Bolingbrook, IL-based, Ulta Beauty Inc., previously known as Ulta Salon, Cosmetics & Fragrance, Inc., is a leading beauty retailer in the United States. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.
The company offers a wide range of products including cosmetics, fragrance, skincare, hair care, bath and body products, and salon styling tools in stores. It sells more than 25,000 products from about 500 well-established and emerging beauty brands across all categories and price points. We note that the company's skincare category has been standing out in particular for a while now, given consumers' rising consciousness.
Meanwhile, the beauty products retailer also provides private label products comprising Ulta Beauty Collection branded cosmetics, skincare, and bath products. Additionally, the company operates a full-service salon in every store offering hair, skin and brow services. Additionally, it offers products through its Website, ulta.com, as well as mobile applications. The products offered by the company include the prestige and mass beauty brands.
As part of its value proposition, Ulta Beauty provides a range of loyalty programs through its Customer Relationship Management platform. It also offers frequent promotions, coupons, in-store events and gifts. The company also makes use of a range of media platforms to advertise products as well as generate awareness. The company strives to boost distribution center capabilities to better support store footfall and online demand.
The company has a strong vendor base and holds partnerships with companies such as Estee Lauder, L’Oréal and Shiseido. Ulta Beauty works closely with vendors to provide improved growth platforms for new and existing brands. Ulta Beauty ended the second quarter of fiscal 2025 with 1,473 stores, totaling 15.4 million square feet across the United States, excluding the 83 stores in the United Kingdom and Ireland operated by Space NK.
(Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while ULTA identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by ULTA, will refer to this same fiscal year as being the year before the same year, as identified by Zacks)
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Ulta Beauty, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2015 would be worth $3,302.42, or a gain of 230.24%, as of December 2, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500's gained 224.01% and the price of gold went up 287.08% over the same time frame.
Going forward, analysts are expecting more upside for ULTA.
Ulta Beauty continues to demonstrate strong brand momentum and customer loyalty, supported by a blend of prestige, mass and professional beauty. Management's focus on innovation, digital personalization and exclusive brand partnerships is helping the company stay relevant in a dynamic beauty landscape. However, cost pressures remain elevated, with higher store payroll, benefits and supply-chain expenses expected to limit near-term margin expansion. The upcoming launch of Ulta Beauty's online marketplace and the integration of Space NK present long-term opportunities but add execution complexity. Management's second-half view reflects a balanced stance amid more value-conscious consumers. While strategic investments underpin long-term strength, near-term profitability may remain constrained by increased expenses and reinvestments.
The stock has jumped 5.84% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Ulta Beauty Inc. (ULTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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