Why Ulta Magnificence Inventory Jumped In the present day

Shares of Ulta Magnificence (NASDAQ: ULTA) popped on Friday after the specialty magnificence retailer boosted its gross sales and revenue forecast.

By the shut of buying and selling, Ulta’s inventory worth was up greater than 12%.

Ulta’s internet gross sales rose 12.9% 12 months over 12 months to $2.9 billion in its fiscal third quarter ended Nov. 1. The features have been pushed by new retailer openings, rising gross sales at current areas, and Ulta’s acquisition of British magnificence retailer Area NK Restricted in July.

Ulta opened 28 new shops and reworked 15 areas in the course of the quarter. The cosmetics retailer ended the interval with over 1,500 shops worldwide.

Income additionally continues to develop steadily on the firm’s older shops. Ulta’s comparable gross sales at shops open no less than 14 months grew a stable 6.3%.

“Thrilling assortment newness, improved in-store and digital experiences, and daring advertising efforts are resonating with our friends and drove sturdy gross sales outcomes, market share features, and development throughout all classes and channels, with notable energy in e-commerce,” CEO Kecia Steelman mentioned in a press launch.

Nonetheless, Ulta’s development investments weighed on its profitability. Its working earnings declined by 3% to $309.4 million, as its working margin fell to 10.8% from 12.6% within the prior-year quarter.

Ulta’s earnings per share, in flip, have been flat at $5.14. Nonetheless, that was properly above Wall Road’s estimates, which had referred to as for per-share earnings of $4.60.

These encouraging outcomes prompted Ulta to raise its full-year steering. Administration now expects same-store gross sales to rise by 4.4% to 4.7%, up from a previous forecast of two.5% to three.5%. Ulta additionally boosted its earnings projections to $25.20-$25.50 per share, up from $23.85 to $24.30.

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