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Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA), Elizabeth Arden, Inc. (RDEN): This Blemished Beauty Could Turn Heads

The NYC headquartered company’s bevy of brand name products, including Estee Lauder, Aramis, Clinique, Origins, M.A.C., Bobbi Brown, La Mer and Aveda, are sold in over 150 countries. Company-wide efforts to reduce or eliminate non-value added costs, in conjunction with long-term strategic plans and initiatives, saved the company $26 million in realized savings in the recent quarter. Solid results and an affirmative outlook place Estee Lauder in the ‘carefully consider’ column.

Beauty Is Attitude

While competitors look good, Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)’s fresh slump (down some 30% from its 52 week high) could provide more upside. Though some near-term concerns exist, several analysts are still optimistic about Ulta.

A Sterne Agee analyst believes Ulta’s long-term growth plans remain intact and maintains a “Buy” on the stock. Credit Suisse is also bullish, upping its rating to an “Outperform.”

Sluggish holiday sales weighed on Ulta and the entire retail industry last year. Worries over the fiscal cliff and lingering effects from Superstorm Sandy presented retailers with the toughest holiday season since the 2008 financial meltdown. Looking ahead, Ulta sees consumer demand picking up.

Investors ought to look beyond Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)’s fresh blemishes.

Sometimes beauty in distress is the most affecting beauty.

The article This Blemished Beauty Could Turn Heads originally appeared on Fool.com and is written by Diane Alter.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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