March 15, 2024

Ulta Beauty (NASDAQ: ULTA) delivered impressive fiscal fourth-quarter results, outperforming expectations both in earnings and revenues. The cosmetic retailer’s performance was strong, however its shares saw a 4% intra-day reduction. Ulta closed at $535.98 in Friday trading down 5.21%.

The EPS (Earnings Per Share) for the quarter stood at $8.08, beating the average analyst expectation of $7.52. The firm’s revenues hit the $3.6 billion mark, higher than the estimated $3.53 billion. Although the same store sales growth of 2.5% was lower compared to the 15.6% growth seen in the same quarter last year, it surpassed the forecasted 2.23%.

The company sustained a robust gross margin at 37.7%, slightly above the 37.6% from the prior year, and beyond the 37.3% predicted.

In light of these results, Ulta has updated its future guidance. The retailer now anticipates EPS of between $26.20 and $27, revised upward from earlier estimates of $25.20 to $25.60. The company anticipates net sales of between $11.7 billion and $11.8 billion. However, it expects growth in comparable store sales to moderate to 4-5%, down from previously estimated 5-5.5%.

Despite the positive performance, investors should understand the reasons for the decline in the company’s stock, the revised forecasts, and how market factors might impact these projections. Remember, any investment decision should be made considering multiple financial indicators and market trends, not based solely on a single quarter’s results.