Ulta Beauty’s net sales come in lower than expected in the fiscal third quarter

Ulta Beauty’s net sales come in lower than expected in the fiscal third quarter
Written by:
Wajeeh Khan
December 4, 2020
  • Ulta Beauty’s net sales come in lower than expected in the fiscal third quarter.
  • The American chain of beauty stores reports £55.66 million of net income.
  • Ulta Beauty struck a deal last month to open hundreds of shops at Target stores.

Ulta Beauty Inc. (NASDAQ: ULTA) said on Thursday that its net sales were lower than expected in the fiscal third quarter. The company, however, expressed confidence that its adjusted earnings in Q3 topped Wall Street estimates.

Ulta Beauty was seen roughly 3.5% down in extended trading on Thursday. On a year to date basis, its shares are now 10% up in the stock market after an over 100% recovery since its low in March. If you are interested in investing in the stock market, you’ll need a broker – here’s a list of the top few to make selection easier for you.

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Ulta Beauty’s Q3 financial results versus analysts’ estimates

Ulta Beauty said that its net income in the third quarter came in at £55.66 million that translates to 98 pence per share. In comparison, its net income in the same quarter last year was reported at a higher £96.51 million, or £1.67 per share.

On an adjusted basis, the beauty retailer earned £1.22 per share in the quarter that concluded on 31st October. Ulta Beauty’s adjusted per-share earnings in Q3 were better than the FactSet Consensus. In separate news from the United States, Marvell Technology also published its quarterly financial update on Thursday, after the closing bell.

In terms of net sales, Ulta Beauty posted £1.15 billion that represents a 7.8% growth on a year over year basis. Analysts, on the other hand, had forecast a marginally higher £1.16 billion of net sales for the Bolingbrook-based company in the fiscal third quarter, as per FactSet.

The American chain of beauty stores also said on Thursday that its comparable sales in Q3 saw an 8.9% annualised growth. Ulta Beauty struck a deal last month to open hundreds of shops at Target stores.

CEO Marry Dillon’s comments on Thursday

CEO Marry Dillon commented on the earnings report on Thursday and said:

“As a well-lived brand curating all things beauty, all in one place, we take great pride in our responsibility to lead the industry and redefine beauty experiences for guests, inclusive of safety measures. As the prevalence of COVID-19 increases across the country, we will continue to monitor closely and adjust operations as needed to ensure the safe delivery of beauty essentials.”

Ulta Beauty shares closed almost flat on average in 2019. At the time of writing, it is valued at £12.14 billion and has a price to earnings ratio of 59.22.