Ulta shares rise after beauty retailer posts 60% gain in revenue as makeup sales recover

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Florida, Port St Lucie, The Landing at Tradition, outdoor mall, Ulta, beauty cosmetics store.
Jeff Greenberg | Universal Images Group | Getty Images

Ulta Beauty shares rose nearly 5% in extended trading on Wednesday after the company reported fiscal second-quarter sales jumped more than 60% as shoppers rushed in to restock their makeup bags.

Ulta raised its full-year outlook after seeing the return of customer demand for beauty products.

“This performance reflects the recovery of the beauty category, investments and choices we’ve made over the last year to adapt to the market disruption and strengthen our leadership position, and the ongoing efforts of our associates to deliver great experiences for our guests,” said CEO Dave Kimbell.

In trading earlier Wednesday, its stock hit a 52-week high of $390.68.

Here’s how the company did for its second quarter ended July 31 compared with what analysts surveyed by Refinitiv were anticipating:

  • Earnings per share: $4.56 vs. $2.59 expected
  • Revenue: $1.97 billion vs. $1.76 billion expected

Net income rose to $250.9 billion, or $4.56 per share, from $8.1 billion, or 14 cents per share, a year earlier.

Revenue jumped to $1.97 billion from $1.2 billion a year ago.

Analysts surveyed by Refinitiv had expected the company to earn $2.59 per share on revenue of $1.76 billion.

The company’s same-store sales grew 56.3% in the quarter. Last year, same-store sales fell 26.7% as the pandemic weighed on makeup sales. Same-store sales in the quarter were 13.1% higher than 2019 levels.

The revenue beat was driven by a 52.5% increase in transactions and a 26.7% increase in how much customers spent on average.

Read the full release from Ulta Beauty here.

This is breaking news. Please check back for updates.

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