One of the largest beauty retailers in the U.S. reported first-quarter results that came ahead of the consensus
The premier beauty destination for cosmetics, fragrance, and various beauty products, Ulta Beauty announced earnings per share of $4.07, beating by far the $1.93 initially touted. The market was looking for an EPS of $1.93 on revenues of $1.64 billion. Ulta officials had the following things to say: "The net sales increase during the first quarter of fiscal 2021 was primarily due to the favourable impact in the U.S. from improving consumer confidence, government stimulus payments and the easing of COVID-19 restrictions." At the same time, the company's comparable sales went up 65.9% versus the 40.1% estimated by analysts.
For the full year 2021, Ulta Beauty's comparable sales are expected to increase between 23% - 25%, up from a previous outlook of 15% - 17%. Moreover, the EPS is seen at a high of $11.95 on revenues of $7.8 billion. The economic reopening is expected to boost the recovery in demand.
After the news, Ulta Beauty shares gained 5%.
Sources: cnbc.com, investing.com