Beauty products on the shelves 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, fending off fears of fiercer competition and slowing demand for makeup and skincare.
The retailer hiked its full-year outlook slightly to reflect the better-than-expected results. For the fiscal year, it said it now expects net sales to range from $11.1 billion to $11.2 billion, compared with its previous guidance for $11 billion to $11.2 billion.
It said it now expects full-year earnings per year to range from $23.20 to $23.75, up from $22.60 to $23.50.
Here’s what the beauty retailer reported for the three-month period ended Nov. 2 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $5.14 vs. $4.54 expected
- Revenue: $2.53 billion vs. $2.50 billion expected
Ulta shares rose roughly 10% in after-hours trading.
Beauty has been a strong category for many retailers, holding up over the past couple of years even as inflation stretched families’ budgets and many shoppers pulled back on discretionary purchases. The category’s resilience caused companies, including Target, Walmart, Kohl’s and Macy’s, to expand their offerings of makeup and skincare.
Yet Ulta began to hint at potential troubles in April, with CEO Dave Kimbell warning of cooling beauty demand at an investor conference.
In recent quarters, Ulta’s results have reflected discerning shoppers and heightened competition. The company missed earnings results and cut its full-year outlook in August after a drop in same-store sales. It marked the first time that the retailer missed Wall Street’s expectations in about four years.
Shares of the company have fallen, too. As of Thursday’s close, Ulta’s stock is down about 19% so far this year, trailing the S&P 500’s approximately 28% gains during the same period.
For the fiscal third quarter, the retailer reported net income of $242.2 million, or $5.14 per share, compared with $249.5 million, or $5.07 per share, during the year-ago quarter.
Revenue rose from $2.49 billion in the year-ago period.
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