By Sabela Ojea
Ulta Beauty reported Thursday after the market close lower-than-expected quarterly earnings per share amid rising sales. Here’s what you need to know:
— EARNINGS PER SHARE: Ulta reported earnings for the fiscal first quarter ended April 29 of $6.88 a share, slightly missing analysts’ expectations of $6.89 a share, according to FactSet. This compares with reported earnings per share of $6.30 for the same period a year earlier.
— SALES: The beauty retailer posted total sales of $2.63 billion, beating analysts expectations of $2.62 billion. The company reported revenue of $2.35 billion for the same period a year earlier.
WHAT WE WATCHED:
— REVENUE GROWTH: Ulta’s revenue growth was driven by increased comparable sales and strong new store performance, it said. Comparable sales increased 9.3% in the period.
— AVERAGE TICKET SALES: The retailer saw a 1.5% decline in average ticket amid an 11% rise in total transaction.
— STORE TRAFFIC: The company’s store traffic remained healthy in the first quarter, with member growth showing continued strength, Chief Executive Dave Kimbell said.
— SELLING, GENERAL AND ADMINISTRATIVE COSTS: Ulta’s total expenses increased 22% to $612.1 million in the quarter.
— DEMAND: Ulta said it raised its inventory levels to meet higher demand for beauty products in the quarter.
— OUTLOOK: The company raised its full-year sales expectations to between $11.0 billion and $11.10 billion, up from a prior forecast for sales in the range of $10.95 billion and $11.05 billion. It also guided for a lower full-year operating margin between 14.5% and 14.8%, down from a prior outlook of up to 15%.
Write to Sabela Ojea at [email protected]
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