Ulta Beauty Results Beat in Q1; Raises Guidance on Reopening Optimism By Investing.com

By Yasin Ebrahim

Ulta Beauty (NASDAQ:ULTA) reported on Thursday first quarter results that topped analysts’ forecasts and the beauty retailer raised its full-year forecast as the reopening is expected to boost the recovery in demand.

Ulta Beauty shares gained 5% in after-hours trade following the report.

For the full-year 2021 comparable sales are forecast at between 23% to 25%, up from the previous guidance range of 15% to 17%; and EPS in a range of $11.50 to $11.95, up from prior estimate of $8.85 to $9.30. Revenue was expected to be between $7.7B to $7.8B.

Ulta Beauty announced earnings per share of $4.07 on revenue of $1.94B. Analysts polled by Investing.com anticipated EPS of $1.93 on revenue of $1.64B.

“The net sales increase during the first quarter of fiscal 2021 was primarily due to the favorable impact in the U.S. from improving consumer confidence, government stimulus payments and the easing of COVID-19 restrictions,” the company said.

Comparable sales increased 65.9%, compared with a decrease of 35.3% in the first quarter of fiscal 2020, driven by a 52.5% increase in transactions and an 8.8% increase in average ticket.

“As increasing consumer confidence, the relaxation of restrictions, and a desire for newness drive increased engagement with the beauty category, our differentiated model, combined with our ongoing efforts to create meaningful guest connections, position us well to lead through the category recovery.”

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