Ulta Beauty Shares Drop 2.76% Amid Strategic Shifts and Mexican Expansion as $450M Volume Ranks 219th

. 5, 2025, , ranking 219th on the day. The stock’s decline came amid strategic shifts and international expansion. Ulta announced plans to open 50–56 new standalone stores annually over the next two to three years, slightly scaling back from previous targets. The company also confirmed the closure of its store-in-store partnership with Target in August 2026, though CEO emphasized that the physical expansion strategy remains intact. Meanwhile, Ulta entered the Mexican market, opening its first two stores in Mexico City and Guadalajara, marking its first international brick-and-mortar expansion. The move introduces 35 beauty brands to the region and aligns with broader retail real estate trends showing heightened demand for neighborhood retail centers.

Ulta’s Q2 earnings highlighted strong performance, . The fragrance category drove double-digit growth, . However, , partly from strategic investments in digital acceleration and store expansion. The company raised full-year guidance, reflecting confidence in its “Ulta Beauty Unleashed” strategy. Despite these gains, the termination of the Target partnership and increased overhead costs signal near-term margin pressures. Analysts remain cautiously optimistic, with and others raising price targets post-earnings.

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