An Ulta Magnificence retailer in New York, USA, on Monday, August 19, 2024.
Yuki Iwamura | Bloomberg | Getty Photos
ultimate beauty Shares of the corporate fell 7% in after-hours buying and selling Thursday as the corporate missed second-quarter expectations and lowered its full-year steerage after falling same-store gross sales in latest occasions.
That is the primary time since Could 2020 that the corporate has missed earnings per share estimates, and the primary time since December 2020 that it has missed income estimates.
StreetAccount information confirmed that comparable gross sales fell 1.2% within the second quarter, in contrast with an 8% enhance in the identical interval final 12 months, nicely under the 1.2% progress anticipated by Wall Avenue analysts.
“Whereas we’re inspired by the various constructive indicators throughout our enterprise, our second quarter outcomes didn’t meet our expectations, primarily on account of decrease comparable retailer gross sales. We’re conscious of the hostile influence on our retailer efficiency components, and we’ve got taken actions to deal with this pattern,” CEO Dave Kimbell stated in a press launch.
The corporate now forecasts full-year same-store gross sales to be flat to down 2%, in contrast with earlier steerage of progress of two% to three%.
Ulta now expects full-year income of $11.0 billion to $11.2 billion, down from the earlier forecast of $11.5 billion to $11.6 billion, and full-year earnings per share of $25.20 to $26, down from the earlier forecast of $22.60 to $23.50. Greenback.
Here is how the sweetness retailer carried out in comparison with Wall Avenue expectations within the interval ended Aug. 3, in keeping with a survey of analysts by LSEG:
- Earnings per share: $5.30 vs anticipated $5.46
- revenue: $2.55 billion vs. $2.61 billion anticipated
The corporate reported internet revenue of $252.6 million, or $5.30 per share, in contrast with $300.1 million, or $6.02 per share, a 12 months earlier.
Income rose to $2.55 billion from $2.53 billion in the identical interval final 12 months.
Earlier this month, Warren Buffett’s Berkshire Hathaway disclosed Stake worth $266 million Magnificence retailer Ulta shares soared. To some analysts, that is verify The inventory is oversold after falling 32% in 2024, and fell 26% within the second quarter alone.
Ulta shares have been falling since CEO Dave Kimbell issued the warning Cool beauty demand on the April investor convention. Kimbell stated that whereas a pullback was anticipated, the corporate was hit “earlier and more durable” than anticipated.
In the course of the firm’s first-quarter earnings name in Could, Kimbell Outline plan Drive gross sales throughout 5 key areas: product assortment, model social relevance, improve client digital experiences, improve loyalty applications, and develop the corporate’s promotional leverage.
On the identical name, Kimbell additionally stated the sweetness retailer would increase its partnerships with supply companies later this 12 months door panelwill start testing a brand new gamification platform and can launch new advertising applied sciences to personalize the client purchasing expertise.
