Plus   Neg

Ulta Salon Shares Fall 5% On Weak Holiday Season Outlook

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA), Thursday reported an increase in third-quarter profit, driven largely by a double-digit sales growth. However, shares of the beauty products retailer slipped 5 percent in extended hours on weak earnings outlook for the current quarter.

Bolingbrook, Illinois-based Ulta Salon's third-quarter profit rose to $131.2 million or $2.18 per share from $104.6 million or $1.70 per share last year. On average, 25 analysts polled by Thomson Reuters estimated earnings of $2.16 per share for the quarter.

Ulta Salon's third-quarter sales rose 16.2 percent to $1.56 billion from $1.34 billion a year ago. Analysts had a consensus revenue estimate of $1.56 billion for the quarter.

Gross margin, the percentage of sales left after deducting sales costs, remained flat at 36.7 percent last year.

Comparable sales, or sales from stores open for at least 14 months, increased 7.8 percent during the quarter, compared to an increase of 10.3 percent last year. During the quarter, the company opened 42 stores and ended the quarter with 1,163 stores.

"Ulta Beauty's strong performance in the third quarter reflects continued market share gains across all major categories, acceleration in our overall comp driven by healthy traffic, excellent new store productivity, and robust e-commerce growth," said Mary Dillon, Chief Executive Officer.

Looking forward to the fourth quarter, Ulta Beauty expects earnings of $3.50 to $3.55 per share on revenues of $2.085 billion to $2.103 billion. Comparable sales are expected to increase 7 to 8 percent. Analysts currently expect earnings of $3.62 per share on revenues of $2.12 billion for the quarter.

For the full year 2018, the company maintained its previous guidance. Ulta Beauty expects earnings growth in the "low twenties percentage range" and total sales growth in the "low-teens percentage range." Analysts currently expect earnings of $10.99 per share on revenue growth of 14 percent.

ULTA closed Thursday's trading at $292.92, up $1.79 or 0.61%, on the Nasdaq. The stock, however, slipped $16.65 or 5.68% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Shares of General Electric Co. are rising more than 10 percent on Thursday after the industrial conglomerate said it plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things or IIoT software portfolio. In addition, longtime bearish analyst Stephen Tusa of J.P. Morgan upgraded shares of GE to neutral. Apple Inc. said Thursday that it will invest $1 billion to build a new corporate campus in North Austin that will eventually create 15,000 jobs. Further, the tech giant announced plans to establish new offices and expand to over 1,000 employees each in three cities - Seattle, San Diego and Culver City, California. In January, Apple said it will create over 20,000 jobs over the next five years. German telecom giant Deutsche Telekom, Chinese conglomerate Alibaba's Alibaba Cloud, banking giant Citi and 13 other organizations have joined Hyperledger Blockchain project, an open source collaborative effort aimed to advance cross-industry blockchain technologies. Hyperledger, a project of The Linux Foundation that started less than three years ago, is a multi-project.
Follow RTT