Beauty merchandise on the cabinets at Ulta on State Street in Chicago on Feb. 4, 2015.
Brian Cassella | Tribune News Service | Getty Images
Ulta Beauty on Thursday beat Wall Street’s fiscal third-quarter expectations, heading off fears of fiercer competitors and slowing demand for make-up and skincare.
The retailer hiked its full-year outlook barely to replicate the better-than-expected outcomes. For the fiscal 12 months, it mentioned it now expects internet gross sales to vary from $11.1 billion to $11.2 billion, in contrast with its earlier steerage for $11 billion to $11.2 billion.
It mentioned it now expects full-year earnings per 12 months to vary from $23.20 to $23.75, up from $22.60 to $23.50.
In a information launch, CEO Dave Kimbell mentioned he is “pleased with the progress” the corporate’s made and “inspired by early indicators that our efforts to bolster our market place and drive improved efficiency are gaining traction.”
Here’s what the wonder retailer reported for the three-month interval ended Nov. 2 in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: $5.14 vs. $4.54 anticipated
- Revenue: $2.53 billion vs. $2.50 billion anticipated
Ulta shares rose roughly 10% in after-hours buying and selling.
Beauty has been a robust class for a lot of retailers, holding up over the previous couple of years at the same time as inflation stretched households’ budgets and many patrons pulled again on discretionary purchases. The class’s resilience triggered firms, together with Target, Walmart, Kohl’s and Macy’s, to broaden their choices of make-up and skincare.
Yet Ulta started to trace at potential troubles in April, with Kimbell warning of cooling magnificence demand at an investor convention.
In current quarters, Ulta’s outcomes have mirrored discerning buyers and heightened competitors. The firm missed earnings outcomes and lower its full-year outlook in August after a drop in same-store gross sales. It marked the primary time that the retailer missed Wall Street’s expectations in about 4 years.
Shares of the corporate have fallen, too. As of Thursday’s shut, Ulta’s inventory is down about 19% up to now this 12 months, trailing the S&P 500’s roughly 28% positive aspects throughout the identical interval.
For the fiscal third quarter, the retailer reported internet revenue of $242.2 million, or $5.14 per share, in contrast with $249.5 million, or $5.07 per share, in the course of the year-ago quarter.
Revenue rose from $2.49 billion within the year-ago interval.
Comparable gross sales, a metric that tracks gross sales at Ulta shops open not less than 14 months together with on-line gross sales, elevated 0.6% 12 months over 12 months, because the retailer noticed a tiny uptick in visitors and common ticket.
Customer transactions throughout its web site and shops grew 0.5% 12 months over 12 months and common ticket, the quantity spent by buyers throughout these visits, rose 0.1% 12 months over 12 months.
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