Ulta Beauty Inc. announced better-than-expected quarterly results and an improved outlook for fiscal 2023, citing the continued popularity of beauty products post-pandemic. The specialty retailer saw a 2% increase in its shares during the extended trading session on Thursday.
Solid Quarterly Performance
Ulta reported earnings of $300 million, or $6.02 per share, for the quarter, compared to $295.7 million, or $5.70 per share, during the same period last year. This beat the FactSet consensus estimate of $5.28 per share. The company revealed that its sales reached $2.5 billion, a 10% increase, meeting expectations. Furthermore, comparable-store sales rose by 8%.
Optimistic Outlook for Fiscal 2023
For the fiscal year, Ulta now predicts net sales to range between $11.05 billion and $11.15 billion, an upward revision from its previous outlook of $11.0 billion to $11.1 billion. Additionally, the company raised its earnings per share (EPS) guidance to a range of $25.10 to $25.60, up from the previous estimate of $24.70 to $25.40.
CEO’s Statement
Chief Executive Dave Kimbell emphasized the consistent growth of the beauty category and highlighted how consumers are maintaining their post-pandemic beauty routines while broadening their definition of beauty. Kimbell credited Ulta’s successful results to their proven business model, diverse assortment, best-in-class loyalty program, and exceptional teams.
Looking Ahead
Ulta’s strong performance in the first half of fiscal 2023 has given Kimbell confidence that the company will meet or exceed expectations for the remainder of the year. Despite a 3.5% decline in shares during regular trading hours, the positive quarterly results and revised outlook have instilled optimism among investors.