Ulta Beauty topped analyst estimates in its third quarter with a lift from comparable sales gains. The beauty and personal care retailer also launched a “Wicked” promotion across its business in connection with the recently released feature film.
Net income was $242.2 million compared to $249.5 million while diluted earnings per share were $5.14 compared to $5.07 in the year-earlier quarter, the company noted.
A Zacks Investment Research analyst consensus estimate called for earnings per diluted share of $4.47. and revenues of $2.49 billion
Comparable sales in the quarter year over year increased 0.6% driven by a 0.5% increase in transactions and a 0.1% increase in average ticket, the company noted. Net sales advanced to $2.53 billion from $2.49 billion in the year-before period, primarily because of new store contribution, partially offset by a decline in other revenue. Operating income was $318.5 million versus $327.2 million, in the quarter a year previous.
In a conference call, Ulta noted a recently introduced collection of products associated with the movie “Wicked” rolled out as part of an immersive experience at its stores and shops in Target locations.
“The Ulta Beauty team delivered better-than-expected sales and profitability reflecting improved sales trends and strong financial discipline,” said Dave Kimbell, Ulta CEO. “I am proud of the progress we’ve made and encouraged by early signs that our efforts to reinforce our market position and drive improved performance are gaining traction. As we look to the remainder of fiscal 2024, we are focused on executing with excellence across our key initiatives to deliver in a dynamic environment. We remain confident that our model and strategies will drive long-term profitable growth and share leadership by enhancing our position as the destination for beauty enthusiasts for a lifetime.”
