Retail Stocks Highlight Key Earnings For Week: What Investors Should Know About Ulta Beauty, Express, Build-A-Bear, Dollar Tree

Several leading retail companies will report quarterly financial earnings this week, which comes shortly after the key Black Friday and Cyber Monday shopping holidays.

Here's a look at some of the top companies reporting and what analysts are saying about them.

Ulta Beauty Earnings: Retailer Ulta Beauty (NASDAQ:ULTA) will report third-quarter financial results after market close on Thursday, Nov. 30. The company has beaten earnings per share and revenue estimates from analysts in each of the past five quarters, according to data from Benzinga Pro.

The company could report same-store sales below estimates, according to Goldman Sachs analyst Kate McShane.

The analyst, who had a Neutral rating and a $537 price target, said traffic data for Ulta was strong in August and September before declining in October.

"Our Neutral rating on Ulta is based on difficult top-line compares and an increasingly promotional environment," McShane said.

Call-outs for strength in the beauty category by other retailers could bode well for Ulta Beauty according to Raymond James analyst Olivia Tong.

The analyst, who had a Strong Buy rating and price target of $500, said the third quarter could be challenging for the company given its lapping pricing.

"We continue to expect Beauty to be one of the more resilient categories in Consumer, an affordable luxury for holiday, and a robust pace of innovation to keep momentum going," Tong said.

The analyst said Ulta's wide range of price points could play well with consumers more conscious of price during the 2023 holiday shopping season.

"In our view, investors should be taking advantage of Ulta's currently discounted valuation."

Ulta's third-quarter results are up against difficult comparable sales, Telsey analyst Dana Telsey said.

The analyst, who had an Outperform rating and $600 price target, said the beauty category is showing resilience.

"Across both prestige and mass, beauty has remained strong and Ulta continues to gain share, across all major categories," Telsey said. "Overall, the beauty category continues to be attractive and resilient."

The analyst said the first half of the year for Ulta was encouraging and the company was "uniquely positioned" to meet demand from different customers in the beauty sector.

Related Link: Shoppers Out In Full Force On Black Friday, Data Shows The Potential Winners

Express Earnings: Retailer Express Inc (NYSE:EXPR) will report third-quarter financial results before market open on Thursday, Nov. 30.

A new CEO and management team are a key item to watch for the third quarter, according to a report from Small Cap Consumer Research.

Small Cap Consumer Research had a Buy rating and $40 price target on Express.

"We believe the company will continue with the ongoing program of cost savings and further shift the product mix towards more fashion basics at compelling pricing," the report said.

Small Cap Consumer Research also saw opportunities for Express to make additional acquisitions and continue to expand the brand internationally.

Build-A-Bear Earnings: Retailer Build-A-Bear Workshop, Inc (NYSE:BBW) will report third-quarter financial results before market open on Thursday, Nov. 30.  

Opportunities for store expansion for Build-A-Bear could be a key for the company's growth, according to a report from Small Cap Consumer Research. The report had a Buy rating and price target of $41.

"We believe Build-A-Bear remains a key experiential winner for 3Q, driving strong results with an impressive offering of Halloween driven items, key online winners, product expansion to satisfy a growing cadre of adult collectors and materially expanding a new category," the report said.

Future catalysts included the launch of a Build-A-Bear movie "Glisten and the Merry Mission" and upcoming tie-ins with movies like "Wonka" and "Trolls."

Dollar Tree Earnings: Discount retailer Dollar Tree Inc (NASDAQ:DLTR) will report third-quarter financial results Wednesday, Nov. 29 before market open. The retailer has beaten earnings per share and revenue each in four of the last five quarters.

Demand for both the Dollar Tree and Family Dollar brands could be shown in the quarterly results according to Telsey analyst Joseph Feldman.

The analyst, who had an Outperform rating and $160 price target, said the company should benefit from consumer demand for value-priced items.

"At core Dollar Tree, the company should gain market share by opening new stores, adding coolers, raising the shelf height, and enhancing merchandising," Feldman said.

The analyst said Family Dollar could benefit from new stores and remodels. Feldman said he was confident in the "multi-year story" of the company.

"Going into the holiday season, we believe Dollar Tree should be a winner, given its value-focused assortment, sharper prices, convenience, and multiple initiatives."

New pricing strategies for Dollar Tree are a key catalyst for Truist analyst Scot Ciccarelli.

The analyst, who had a Buy rating and $129 price target, said the company continued to invest in pricing, labor and processes to power additional growth.

"We believe DLTR shares continue to have significant upside potential and remain aggressive buyers," Ciccarelli said.

Read Next: Cyber Monday Sales Could Hit $12 Billion, 5 Stocks That Could Win Big From E-Commerce Holiday Shopping

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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