Ulta Beauty's Keys to Restarting the Engine: Tariff Protection, Diversification, Expansion, and Resilience

Ulta Beauty is well-positioned to restart its engine after suffering from market normalization concerns, tariffs, and fierce competition. With limited exposure to US tariffs and the recent acquisition of Space NK, the British cosmetics retailer, the company is diversifying its business and expanding its offering to attract more customers. Beauty products are seen as essential during economic downturns, and Ulta Beauty's Q2 figures exceeded expectations while raising annual targets. The stock's valuation has returned to traditional levels around 20x expected earnings this year.