Ulta Beauty beats the street in third quarter
Beauty industry disruptor Ulta Beauty delivered earnings that surpassed analysts’ expectations in the third quarter of 2017. The company saw net income increase by 19.5% against the year ago quarter, to 104.6 million, or $1.70 per share. This was against forecasts of $1.66 per share. Net sales were up 18.6% to 1.34 billion in sales – despite an estimated loss of $14 million due to Hurricanes Harvey and Irma. Salon sales increased 10.8% against the previous year, but Ecommerce was the real outperformer: the company saw an uptick of 62.9% in online sales against the third quarter of 2016.
Ulta Beauty’s share price is up 10% over the last 30 days!
SOURCE: Yahoo Finance
Mary Dillion, the company’s CEO, said: “Our third quarter results clearly demonstrate the strength and distinct advantages of the Ulta Beauty business model. We delivered double-digit comparable sales growth, in spite of a moderation in the growth rate of our largest category - makeup - and meaningful disruption from hurricanes.
“We flexed our merchandising and marketing plans, leveraged our consumer insights and CRM platform, and worked with our brand partners to create compelling offers for our guests. We also benefitted from the unmatched breadth of beauty categories and products we offer. These levers allowed us to drive significant share gains, continue to rapidly grow our base of loyalty members, and thrive amidst shifting category trends within the beauty industry.”
The company said it expects fourth quarter sales between $1.93 and $1.96 billion, with earnings per share for the quarter coming in between $2.73 and $2.78.
Dominion holds Ulta Beauty in its Global Trends Luxury Fund.
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