Ulta Beauty Crushes Expectations for Q2

By Chris Lange Published Aug 28, 10:07AM EDT

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Ulta Beauty Crushes Expectations for Q2 — © jeepersmedia / Flickr

When Ulta Beauty Inc. (NASDAQ: ULTA | ULTA Price Prediction) released its most recent quarterly results after the markets closed on Thursday, the firm said that it had $0.73 in earnings per share (EPS) and $1.2 billion in revenue. Consensus estimates were calling for $0.06 in EPS and revenue of $1.24 billion. The fiscal second quarter of last year reportedly had EPS of $2.72 on $1.67 billion in revenue.

During the latest quarter, net sales decreased 26.3% year over year. Comparable sales, which include stores that were temporarily closed due to the COVID-19 crisis, as well as e-commerce sales, decreased 26.7%, compared with an increase of 6.2% in the second quarter of fiscal 2019. Also in the most recent quarter, transactions declined 36.2% and average ticket increased 14.9%.

Management noted that it is encouraged by the recent improvement in sales trends, but it still believes it will take time to return fully to pre-pandemic levels. Given continued disruption, new operational protocols and near-term employment and economic uncertainty, Ulta expects sales will continue to be challenged for the rest of the year.

The company withdrew guidance for the fiscal 2020 year back in March, and it will not be reinstating it anytime soon. However, the firm did give some insight. The company expects to incur between $35 million and $40 million in PPE- and COVID-19-related costs. It also anticipates capital expenditures will be between $180 million and $200 million.

[nativounit]

On the books, the company ended the second quarter with $1.2 billion in cash and cash equivalents. In the fiscal first quarter, the company drew down $800 million under its $1.0 billion credit facility.

Analysts were calling for $1.67 in EPS and $1.63 billion in revenue for the fiscal third quarter. For the 2021 fiscal year, they expect $4.16 in EPS and $6.4 billion in revenue.

Ulta Beauty stock traded about 12% on Friday to $251.07, in a 52-week range of $124.05 to $304.65. The consensus price target is $262.59.

[recirclink id=731643][wallst_email_signup]

DISCLOSURE:

Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $15. Probability of member receiving $3,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $3,000 are subject to decrease. See full terms and conditions.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.

Follow 24/7 Wall St. on Google

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.