Ulta Magnificence Surpasses Wall Road Estimates in Q2, Raises Full 12 months Outlook

Ulta has raised its full-year outlook on the again of better-than-expected second-quarter outcomes as customers proceed to open their wallets on the magnificence counter regardless of an unsure financial backdrop.

Internet gross sales elevated 16.8 % year-over-year to $2.3 billion within the second quarter of the fiscal 12 months, in comparison with $2 billion in the identical interval a 12 months earlier as a result of “favorable affect from the continued resilience of the wonder class, the affect of latest manufacturers and product innovation, and the easing of COVID-19 restrictions,” the corporate mentioned. Analysts had forecasted gross sales of round $2.2 billion, in accordance with a Factset ballot.

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All main classes exceeded Ulta’s expectations, and the retailer elevated market share in status magnificence versus final 12 months. In comparison with the second quarter of 2021, each status and mass make-up delivered double-digit comp progress.

Internet earnings elevated 17.8 % to $295.7 million in comparison with $250.9 million within the second quarter of fiscal 2021. Diluted earnings per share elevated 25 % to $5.70, in contrast with Wall Road estimates of $4.99.

“Sturdy shopper demand and broad-based momentum throughout our enterprise continued as our groups executed our plans with excellence,” mentioned Dave Kimbell, chief government officer at Ulta. “For the quarter, we delivered double-digit comparable gross sales progress throughout all main classes and elevated profitability, demonstrating the energy of our mannequin and the dedication of our groups.”

Kimbell continued, “As we glance to the second half of the 12 months, we proceed to function in a dynamic surroundings, however I’m assured that our distinctive mannequin and one-of-a-kind assortment, paired with the sturdy emotional connection visitors must magnificence, place us properly to proceed to ship worthwhile progress.”

The corporate raised its outlook for fiscal 2022. It now expects internet gross sales within the area of $9.65 billion to $9.75 billion, up from $9.35 billion to $9.55 billion. Diluted earnings per share are anticipated to be $20.70 to $21.20, up from $19.20 to $20.10.

“As we glance to the longer term, we all know there shall be challenges, notably with the wide-ranging affect of rising inflation, each on our enterprise and our visitors. However we stay assured within the resilience of the wonder class and our capability to steer the wonder class and drive long-term worthwhile progress,” added Kimbell throughout a name with analysts.

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