Ulta shares shine after the mega beauty retailer dropped dazzling Q4 earnings
Shares of the largest US beauty retailer are still down nearly 45% over the past year.
Ulta Beauty shares popped 6% in early trading Friday, a day after the mega beauty retailer posted an attractive Q4 earnings beat.
Revenue hit $3.48 billion, topping analyst estimates of $3.46 billion, according to FactSet, though it still fell slightly short of last year’s numbers, which included an extra week. Earnings per share came in at $8.46, beating expectations of $7.13.
As the largest US beauty retailer, Ulta has long been a go-to for cosmetics, fragrances, skin care, hair care, and salon services. However, like peers Estée Lauder, e.l.f. Beauty, and Coty, Ulta’s stock has struggled as consumer spending tightens and competition picks up from larger retail rivals like Amazon and Walmart. Ulta shares have fallen more than 20% so far this year.
For the full year, Ulta expects diluted earnings per share to range from $22.50 to $22.90, just below estimates of $23.06.
This is the first earnings report under Ulta’s new CEO, Kecia Steelman. On a call with analysts, she said the company’s relaunched loyalty program recently reached a record of 44.6 million members, and she highlighted plans to launch in Mexico and expand into the Middle East.