- The net sales of Ulta Beauty in the third quarter of the financial year are lower than expected.
The American chain of beauty stores reported a net profit of 55.66 million pounds sterling.
Ulta Beauty signed an agreement last month to open hundreds of stores at Target.
ULTA Beauty Inc. (NASDAQ: ULTA) announced on Thursday that its net sales for the third quarter of the fiscal year were lower than expected. However, the company was confident that its adjusted third quarter earnings exceeded Wall Street estimates.
Ulta Beauty reported a decline of approximately 3.5% in extended retail on Thursday. On an annualized basis, the company’s shares have now risen by 10% after a more than 100% recovery from the March low on the stock market. If you are interested in investing in the stock market, you will need a broker – here is a list of the most important ones to help you choose.
Ulta Beauty’s financial results for the 3rd quarter compared to analysts’ estimates
Ulta Beauty said its net profit for the third quarter was £55.66 million, equivalent to 98 pence per share. This compares to higher net income of £96.51 million or £1.67 per share for the same quarter last year.
On an adjusted basis, the cosmetics retailer earned £1.22 per share in the quarter ended October 31. Ulta Beauty’s adjusted earnings per share in the third quarter were better than the FactSet consensus. In a separate news release from the United States, Marvell Technology also released its quarterly financial update on Thursday after the closing bell.
In terms of net sales, Ulta Beauty recorded £1.15 billion, representing 7.8% growth year on year. Analysts, on the other hand, had predicted slightly higher net sales of £1.16 billion for the Bolingbrook-based company in the third quarter, according to FactSet.
The American cosmetics chain also announced on Thursday that its comparable sales in the third quarter showed annualized growth of 8.9 percent. Ulta Beauty signed a contract last month to open hundreds of stores at Target.
CEO Marry Dillon’s comments on Thursday
CEO Marry Dillon commented on Thursday’s earnings report and said
“As a well established brand that curates all things beautiful in one place, we are very proud of our responsibility to lead the industry and redefine beauty experiences for guests, including security measures. As the prevalence of COVID-19 increases across the country, we will continue to closely monitor and adjust procedures as necessary to ensure safe delivery of beauty care products”.
Ulta Beauty’s shares closed on average almost unchanged in 2019. At the time of writing this report, it is estimated at £12.14 billion and has a price-earnings ratio of 59.22.