Earnings Results: Higher prices, ‘sustained resilience’ in demand are helping Ulta Beauty’s results

by | Dec 1, 2022 | Stock Market

Shares of Ulta Beauty Inc. rose after hours Thursday after the beauty-product and salon chain reported third-quarter results that beat estimates and raised its full-year outlook, following price hikes and what management called “sustained resilience of the beauty category.” The company reported net income of $274.6 million, or $5.34 a share, compared with $215.3 million, or $3.94 a share, in the same quarter last year.

Revenue rose to $2.3 billion, compared with $2 billion in the prior-year quarter. Management attributed the gains to “continued resilience of the beauty category, retail price increases, and the impact of new brands.” Same-store sales, for stores open at least 14 months, rose 14.6%. Analysts polled by FactSet expected Ulta
to earn $4.15 a share, on revenue of $2.22 billion. Those analysts expected same-store sales to rise 9.1%. Ulta also raised its full-year sales and profit outlook. Executives said they expected sales of between $9.95 billion and $10 billion, and same-store sales growth of 12.6% to 13.2%, both up from prior forecasts. The company forecast earnings per share of between $22.60 and $22.90, compared with a prior outlook for between $20.70 and $21.20. For the full year, FactSet forecasts earnings per share of $21.44, with revenue of $9.78 billion. “Our t …

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