Ulta Beauty stated Thursday that fourth-quarter sales and revenue fell from the previous year, harmed by weaker sales of cosmetics throughout the pandemic.
Although the decrease was smaller sized than anticipated, shares fell as the charm seller provided a frustrating outlook for the coming year. Ulta shares fell more than 8% after the bell.
The business likewise revealed that its CEO Mary Dillon will step down in June, and be changed by President Dave Kimbell.
Dillon will likewise shift to executive chair of the business’s board, where she prepares to stay for a year.
Kecia Steelman, Ulta’s primary shop operations officer, will be promoted to primary running officer.
Here’s what the business reported for its 4th quarter, compared to what Wall Street experts anticipated, utilizing a study from Refinitiv:
- Earnings per share: $3.41, changed vs. $2.35 anticipated
- Revenue: $2.2 billion vs. $2.08 billion anticipated
“The Ulta Beauty team delivered better-than-expected results for the fourth quarter. Strong, enterprise-wide execution of our plans, combined with improving trends in consumer demand, resulted in solid results across multiple metrics, including sales, transactions and profitability,” Dillon stated in a news release.
Ulta reported financial fourth-quarter earnings of $171.5 million, or $3.03 per share, compared to $222.7 million, or $3.89 per share, a year previously.
Excluding products, Ulta made $3.41 per share, topping the $2.35 per share anticipated by experts surveyed by Refinitiv.
Net sales was up to $2.2 billion from $2.31 billion a year earlier, beating expectations of $2.08 billion.
Sales at shops open a minimum of 14 months fell 4.8% in the current duration, harmed by less deals. The business stated deals decreased 12.2%, nevertheless, the typical purchase per ticket increased 8.3%.
For financial 2021, Ulta anticipates to make in between $8.85 and $9.30 per share on profits of $7.2 billion to $7.3 billion. The incomes projection consists of the effect of about $850 countless stock buybacks.
Analysts had actually been anticipating Ulta to make $10.61 per share on profits of $7.32 billion, according to Refinitiv.
Same-shop sales are anticipated to be in the series of 15% to 17%, the business stated.
Ulta prepares to open 40 net brand-new shops and redesign about 21 shops in the coming year.
Due to the pandemic extending on and the sluggish vaccine rollout, Ulta executives do not anticipate a strong healing this year.
“While we are encouraged by recent sales momentum, visibility into the timing of a demand recovery remains limited. We expect much of 2021 will continue to be negatively impacted by masking requirements and social distancing,” stated Ulta’s Chief Financial Officer Scott Settersten in a teleconference.
Although the charm seller discovered a decrease in makeup sales due to more individuals staying at home, the business stays positive in the classification’s long-lasting potential customers.
“We see a renewal being available in [and] how our visitors will engage in makeup habits, styles, the appearances, the designs, will continue to progress,” stated Kimbell.
In November, Ulta revealed strategies to open little cosmetic stores within numerous Target shops throughout the nation in order to attain greater sales and broaden its reach.
The cosmetics seller has actually been harmed by momentary shop closures throughout the pandemic. After resuming shops in July, the business saw its need return with a strong return in its mobile app and e-commerce site.
Read the complete incomes release here.
