Ulta Beauty (ULTA), a beauty-product retailer and salon chain, reported fourth-quarter earnings after the close that beat expectations, helped by strong holiday-period demand. Ulta Beauty stock jumped 4% in after-hours trading in the stock market today.
Ulta Beauty Earnings
Estimates: Wall Street expected Ulta Beauty earnings per share during the fourth quarter to rise 30% to $3.56. The Street expected revenue to gain 9% to $2.106 billion. Same-store sales were expected to rise 7.9% overall, according to Consensus Metrix.
Results: Same-store sales rose 9.4%. Earnings per share came in at $3.61. Net sales were $2.12 billion.
CEO Mary Dillon said in a statement that Ulta “continued to gain significant share across all major categories, particularly with digitally native brands where Ulta Beauty is often the only point of distribution in brick and mortar.”
Ulta offers more than 20,000 products under around 500 brands, including its own private-label offerings, according to CFRA.
The company also forecast full-year same-store sales growth of around 6%-7%, with e-commerce sales growth of between 20% and 30%.
Ulta said it expected earnings per share for the full year of $12.65 to $12.85, including the impact of a $700 million stock buyback and a 24% effective tax rate.
Ulta Beauty Stock
Ulta Beauty stock is extended from a 294.54 handle buy point of a cup base. Ulta Beauty stock has a 96 Composite Rating out of a best-possible 99.
The EPS Rating of Ulta Beauty stock, at 97, is also strong, indicating growth in profit per share. But the stock’s relative strength line, a measure of a stock’s performance against the S&P 500, has also flattened out.
Unlike a lot of brick-and-mortar retailers, analysts over the years have said Ulta has protected itself from Amazon (AMZN) by giving people a reason to visit their store.
Ulta’s salons help on that front. But Fast Beauty, a line of beauty products, recently appeared exclusively on Amazon’s marketplace, CNBC noted. But CFRA analysts this week said that Ulta still outdid Amazon in online searches for skincare and makeup.
“As such, we don’t see AMZN giving the beauty industry a makeover anytime soon,” CFRA analyst Camilla Yanushevsky said in a research note.
She added: “According to GlobalData, four out of five millennials enjoy experimenting with foreign products. With a wide selection of premium and indie brands and in-store testers, we see ULTA remaining the beauty provider of choice.”
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