Ulta Beauty stock boosted by big profit beat, raised sales forecast
Ulta Beauty (NASDAQ:ULTA) stock edged higher in Thursday’s extended session after topping earnings expectations and raising sales forecasts.
For the third quarter, the Illinois-based beauty retailer reported $5.34 in earnings per share alongside $2.3B in revenue. Analysts had anticipated $4.13 and $2.21B, respectively. Comparable sales rose 14.6% from the prior year quarter, while margins expanded by 60 basis points despite elevated costs.
“Amidst a challenging macro environment, the Ulta Beauty team delivered yet another outstanding quarter, with strong top and bottom-line results and growth across all major categories and channels,” CEO Dave Kimbell said. “Our third quarter results reflect the sustained resilience of the beauty category and the strong emotional connection and loyalty we have cultivated with our guests.”
Management raised its sales outlook to a range of $9.95B to $10B, up from a prior $9.65B to $9.75B forecast. Diluted earnings per share is expected to range from $22.60 to $22.90, elevated from the prior guidance range of $20.70 to $21.20. Analysts anticipated full-year sales to tick in at $9.77B and EPS for the full year to reach $21.38. Management also moved comparable sales expectations to a range of 12.6% to 13.2%, up from 9.5% to 10.5% in the prior guide.
Shares of the beauty retailer rose 2.66% in after hours trading on Thursday.
Read more on the details of the results.