U.S. beauty retailer and salon Ulta Beauty, Inc. (ULTA) reported outstanding third-quarter results, aided by strong consumer demand for its offerings as COVID-19 restrictions relaxed.The company’s results meaningfully exceeded both sales and revenue estimates. ULTA also raised its full-year fiscal 2021 outlook in anticipation of strength in demand for its offerings. Following the news, shares soared 5.2% during the extended trading session on December 2.
ULTA’s net sales saw 28.6% growth year-over-year to $2 billion, surpassing analysts’ estimates of $1.86 billion. Similarly, year-over-year comparable sales also increased 25.8%.
Moreover, earnings stood at $3.94 per share, a whopping 198.5% growth against the prior-year quarter, and significantly better than analyst estimates of $2.42 per share.
The company ended the quarter with 1,302 stores sprawling across 13.7 million square feet.
CEO of Ulta Beauty, Dave Kimbell, said, “For the third quarter, we delivered record sales and earnings, increased our market share, and expanded our Ultamate Rewards loyalty program to nearly 36 million members… This strong third-quarter performance reflects the strength and resiliency of the Beauty category, the power of the Ulta Beauty differentiated model, and the impact of our winning culture and team.”
See Analysts’ Top Stocks on TipRanks >>
Based on the strong demand witnessed during Q3, the company increased its full-year fiscal 2021 outlook.
For FY21, ULTA now forecasts net sales to be in the range of $8.5 billion to $8.6 billion higher than the consensus estimate of $8.35 billion.
Additionally, FY21 earnings are projected to be between $16.70 per share to $17.10 per share, higher than the consensus estimate of $15.19 per share.
Wall Streets’ Take
The Wall Street community is cautiously optimistic about the ULTA stock with a Moderate Buy consensus rating based on 10 Buys and 5 Holds. The average Ulta Beauty price target of $431 implies 12.3% upside potential to current levels. Shares have gained 32.5% over the past year.
Square Renamed to Block, Paving Way for Future Growth
Snowflake Up 16% on Solid Q3 Revenue & Guidance
Five Below Jumps 9% on Outstanding Q3 Beat