Ulta Beauty Inc.
posted higher sales in the latest quarter, driven by strength in the cosmetics company’s skin-care and hair-care categories.
Shares of Ulta Beauty rose 9% to $257.50 in after-hours trading following the results.
Skin care was one of the company’s strongest growth drivers, delivering double-digit comparable sales for the quarter, Chief Executive
said on a call with analysts.
“Much of this growth is a result of strong brand and product innovation as well as new skin-care routines,” Ms. Dillon said. New brands and products in skin care and hair care drove about 25% of the company’s total comparable sales, she said.
However, the company continues to see weakness in its makeup category, which accounted for about 51% of Ulta’s sales for the fiscal year ended Feb. 2, according to securities filings.
Total sales for the quarter rose roughly 8% from a year ago to $1.68 billion. Analysts had expected revenue of $1.69 billion. Comparable sales, a metric that includes stores open at least 14 months and the e-commerce business, rose 3.2% in the quarter, in line with analysts’ estimates, according to FactSet.
’s move last month to purchase a controlling stake in celebrity Kylie Jenner’s cosmetics startup, Kylie Cosmetics, has raised concerns that the deal could harm Ulta’s sales because Ulta started selling Kylie skin care products last year. However, Ulta’s executives assured analysts that it expects the partnership to continue, adding that the makeup assortment and approach were different.
“We have a great relationship with Coty, and we anticipate a lot of positive opportunity to continue to grow those brands together going forward,” Chief Financial Officer
Ulta’s profit in the quarter fell to $129.7 million from $131.2 million a year ago. On a per-share basis, Ulta’s profit rose to $2.25, from $2.18, because of fewer shares outstanding, surpassing analysts’ profit estimate of $2.13.
The company also updated its earnings forecast, projecting full-year earnings between $11.93 to $12.03 a share, compared with its prior per-share outlook of $11.86 to $12.06.
Total sales are expected to increase by about 10%. In August, the company forecast total sales growth of between 9% and 12%. Meanwhile, the company narrowed its projected growth in comparable sales to 4.7%-5% from 4%-6% as it previously expected.
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