Ulta Beauty Stock Receives Boost After Earnings

Ulta Beauty stock is soaring today! The cosmetics retailer has exceeded both sales and profit expectations, raising its full-year outlook as a result. In the 13-week period ending November 2, Ulta’s revenue grew by 1.7% year over year to $2.53 billion. This boost was driven by new store openings and a good 0.6% rise in same-store sales too. Moreover, the earnings per share (EPS) went up by 1.4% from a year ago to reach $5.14. Ulta’s CEO, Dave Kimbell, shared his team’s success in surpassing sales and profitability targets due to improved sales trends and solid financial discipline. Regarding the company’s future outlook, Kimbell emphasized the focus on executing key initiatives excellently to adapt to this dynamic environment.

The positive outcomes in Q3 led Ulta to adjust its full-year projections too. Here’s a comparison of what the company anticipated earlier this year against its latest predictions:

– Revenue: Updated outlook between $11.1 billion to $11.7 billion, in contrast to the earlier range of $11 billion to $11.2 billion.
– Comparable-store sales: A revised forecast between -1% to 0% from -2% to 0% previously.
– Earnings per share: A new range from $23.20 to $23.75 compared to the previous expectation of $22.60 to $23.50.

ULta’s ongoing drive to maintain its position as the go-to destination for beauty enthusiasts has helped boost investor confidence. Despite facing challenges this year, analysts consider it a solid stock choice. In particular, Oppenheimer stands out with an Outperform rating and a $505 price target. The firm’s analysts note Ulta’s “differentiated offering and unique value proposition,” and predict that the company will continue delivering growth rates above the retail industry average. Currently, Ulta Beauty is in line with analysts’ average price target of $432.77. Wall Street didn’t anticipate this post-earnings surge though, with the stock rising almost 9% following the strong report.