ultimate beauty The company topped Wall Street’s fiscal third-quarter forecasts on Thursday, dispelling concerns about increased competition and slowing demand for cosmetics and skin care products.
The retailer slightly raised its full-year forecast to reflect better-than-expected results. The company said it now expects net sales for the fiscal year to be between $11.1 billion and $11.2 billion, compared with previous guidance of $11.0 billion to $11.2 billion.
The company said it now expects full-year earnings to range from $23.20 to $23.75, up from $22.60 to $23.50.
CEO Dave Kimbell said in a release that he is “proud of the progress” the company has made and is “encouraged by early signs of our efforts to solidify our market position and drive improved performance.” The efforts are gaining traction.”
Here’s how the beauty retailer’s report for the three months ended Nov. 2 compared with Wall Street expectations, according to a survey of analysts by the London Stock Exchange (LSEG):
- Earnings per share: $5.14 vs expected $4.54
- income: $2.53 billion vs. $2.50 billion expected
Ulta shares rose about 10% in after-hours trading.
Beauty has been a strong category for many retailers and has held up over the past few years despite inflation straining household budgets and many shoppers cutting back on discretionary purchases. The category’s resilience has led companies, including Target, Walmart, Kohl’s and macy’s department storeexpanding the product range of cosmetics and skin care products.
However, Ulta began hinting at potential trouble in April, and Kimbell Warning as beauty demand cools at investor meetings.
Ulta’s results in recent quarters have reflected discerning shoppers and fierce competition. company Missed profit results It lowered its full-year forecast in August after same-store sales fell. This marks the first time the retailer Missed Wall Street’s expectations About four years later.
The company’s stock price also fell. Ulta shares were down about 19% year to date as of Thursday’s close, lagging the S&P 500’s gain of about 28% over the same period.
In the fiscal third quarter, the retailer reported net income of $242.2 million, or $5.14 per share, compared with net income of $249.5 million, or $5.07 per share, in the same period last year. Same period last year.
Revenue increased from $2.49 billion in the same period last year.
Comparable sales, a metric that tracks sales at Ulta stores open at least 14 months as well as online sales, rose 0.6% year over year as the retailer’s traffic and average ticket prices rose slightly.
Customer transaction volume on its website and stores increased 0.5% year over year, and average tickets, which are the amount shoppers spend during a visit, increased 0.1% year over year.
Kimbell said on the company’s earnings call that the launch of new brands, digital tools and in-store events helped drive Ulta’s better performance in the quarter.
For example, he said, Ulta is selling an exclusive makeup line tied to the launch. universalThe movie “The Bad Guys”. It has also added new online features, including virtual try-on enhancements and a new digital buying guide. It also hosts in-store events, including workshops where customers can receive guidance from Ulta stylists on how to create “salon-worthy hair.”
The holidays are a critical time of year for beauty retailers, including Ulta. Kimbell said the company was “encouraged by Cyber Monday’s performance.”
However, he hinted that the context remains challenging. He said the company was ready for the shopping season, although “our insights suggest economic concerns are driving a greater focus on value”.
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