ULTA

Ulta Salon Cosmetics & Fragrance Inc

Consumer


Presented:11/10/2015
Price:$174.08
Cap:$11.21B
Current Price:$369.49
Cap:$17.41B

Presented

Date11/10/2015
Price$174.08
Market Cap$11.21B
Ent Value$10.22B
P/E Ratio39.12x
Book Value$20.99
Div Yield0%
Shares O/S64.41M
Ave Daily Vol870,118
Short Int4.82%

Current

Price$369.49
Market Cap$17.41B
Ulta Salon, Cosmetics & Fragrance, Inc. is beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the U.S. The company, through its stores and ulta.com, offers a prestige and mass beauty products across the categories of cosmetics, fragrance, hair-care, skincare, bath and body products and salon styling tools, as well as salon hair care products. It also offers a full-service salon in all of its stores. The company's stores are located in convenient and high-traffic locations, such as power centers. Ulta Salon, Cosmetics & Fragrance was founded on January 9, 1990 and is headquartered in Bolingbrook, IL.

Publicly traded companies mentioned herein: Macy’s Inc (M), Ulta Salon, Cosmetics & Fragrance Inc (ULTA), Walgreens Boots Alliance Inc (WBA)

Highlights

The presenter sees a favorable risk/ reward setup for bears on Ulta Salon (ULTA), which he characterized as a widely “loved but overvalued” stock carrying expectations on the Street that are “simply too high.” He is short at current levels (~$170) and said there needs to be a “beat and raise” story to justify the stock price and any upside. In his opinion that’s “off the table” due to a number of seemingly minor issues that in combination create a headwind for sales growth. Retail has been choppy of late and if ULTA were to put up a 5% - 7% comp (vs +9%) he thinks its stock could decline 30%.

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Idea Discussion

Commentor 1 - 2 weeks ago

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