Ulta Beauty Inc Shares Decline on Weak Q2 Outlook
Ulta Beauty Inc (NASDAQ:ULTA) reported its latest quarterly results after the bell Thursday, which sent shares tumbling as the company missed analysts’ outlook for the current quarter.
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The beauty salon chain said that for its first quarter of the current fiscal year, it brought in adjusted earnings of $2.70 per share, which was a 31.7% increase compared to the year-ago quarter. The figure topped expectations as analysts were calling for the company to bring in adjusted earnings of $2.48 per share, according to data compiled by Zacks Investment Research.
On the revenue front, Ulta Beauty also beat Wall Street’s guidance as it brought in sales of $1.54 billion, a 17.4% improvement compared to the year-ago quarter. Analysts were projecting the company to rake in revenue of $1.53 billion, according to data compiled by Zacks.
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The company’s comparable sales impressed, growing 88.1% year-over-year thanks to a 5.1% transaction growth and a 3% growth in average ticket. Ulta Beauty’s e-commerce sales soared 48% compared to the year-ago quarter to $154.4 million, while salon sales were up by 10.1% year-over-year.
For its second quarter, the company sees sales in the range of $1.475 billion to $1.488 billion, below analysts’ expectations for $1.498 billion. Ulta Beauty also forecasts adjusted earnings in the range of $2.35 to $2.40 per share, below Wall Street’s outlook of $2.50 per share.
ULTA stock fell about 2.6% during regular trading hours and declined a further 3.9% after the bell on the company’s weak quarterly outlook.
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