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MEXICO CITY - Ulta Beauty (NASDAQ:ULTA), the largest beauty retailer in the United States with a market capitalization of $23.88 billion, opened its first physical stores in Mexico, marking the company’s first brick-and-mortar international expansion. According to a press release, the retailer launched its first location at Antara Fashion Hall in Mexico City on August 21, followed by a second store at Galerías Metepec on August 30. InvestingPro data shows the company’s strong financial health, with 15 analysts recently revising their earnings expectations upward.
The expansion brings 35 beauty brands to Mexico for the first time, including Ulta Beauty exclusives such as Isima by Shakira, Peach & Lily, and Ulta Beauty Collection, alongside local Mexican brands like AHAL and Bailando Juntos by Yuya.
"Entering Mexico represents a bold and exciting step for Ulta Beauty as we bring our unparalleled assortment and inclusive shopping experience to beauty lovers in this significant international market," said Kecia Steelman, President and CEO of Ulta Beauty.
The company is partnering with Grupo Axo for its Mexican operations. Andrés Gómez, CEO and chairman of the board at Grupo Axo, stated that Mexico "is home to one of the world’s most dynamic and passionate beauty communities."
Ulta Beauty plans to open several additional stores across Mexico throughout 2025, including locations in Guadalajara, Monterrey, Tijuana, and other cities in Mexico. The company will host a private grand opening celebration at its Antara store on September 18.
This expansion follows Ulta Beauty’s international growth strategy, which also includes a joint venture in Mexico, a franchise in the Middle East, and its subsidiary Space NK operating in the United Kingdom and Ireland.
The retailer currently operates approximately 1,500 stores across the United States since opening its first location in 1990. With annual revenue exceeding $11.6 billion and trading near its 52-week high, Ulta Beauty continues to demonstrate solid growth potential. For deeper insights into Ulta Beauty’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which include additional financial metrics and expert analysis.
In other recent news, Ulta Beauty reported a 6.7% increase in comparable sales for the second quarter, surpassing market expectations of around 5%. This growth was driven by a 3.7% rise in transactions and a 2.9% increase in average ticket size. Following these strong results, UBS raised its price target for Ulta Beauty to $680, maintaining a Buy rating. Similarly, DA Davidson increased its price target to $625, highlighting Ulta’s recovery from a period of sales weakness. TD Cowen also raised its target to $600, noting the company’s impressive sales performance. Raymond James set a new target of $605, citing the highest comparable sales growth in eight quarters. Telsey Advisory Group increased its price target to $610, following Ulta’s quarterly earnings beat and a raised full-year outlook. These developments reflect analysts’ positive outlook on Ulta Beauty’s recent performance.
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