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Ulta Beauty shares drop after quarterly earnings report
Ulta reported Q2 net sales of $3.0 billion, up 8.9% year over year, while it also increased its full-year net sales and operating income outlook.
Ulta Beauty shares fell after the cosmetics retailer released quarterly results, according to Yahoo Finance. For its second quarter ended Aug. 1, the company said net sales rose 8.9% year over year to $3.0 billion.
Ulta attributed the sales increase to new store openings, higher sales at existing locations, and its acquisition of British beauty retailer Space NK. During the quarter, it opened 14 net stores, bringing total locations to 1,622 as of Aug. 1, including 1,534 in the U.S. and 88 internationally, with more than 80 of the international stores tied to Space NK. Comparable sales rose 3.8%, and the company said operating income increased 10.1% to $379.6 million, while earnings per share climbed 13.3% to $6.55.
The report also topped Wall Street expectations, with analysts projected per-share profits of $6.20. Yahoo Finance noted some analysts flagged muted traffic growth and higher promotional activity as factors that weighed slightly on gross margin.
Ulta raised its full-year forecasts for net sales growth to 6.7% to 7.2% and operating income growth to 8.3% to 9.3%, and it lifted its earnings per share projection to $28.70 to $29.00. The company also said it plans to buy back up to $1 billion of its shares, and CEO Kecia Steelman said Ulta is focused on strengthening its position as a beauty discovery destination through innovation, value, experiences, and convenience.