An Ulta Beauty store in New York, USA, on Monday, August 19, 2024.
Yuki Iwamura | Bloomberg | Getty Images
ultimate beauty Shares of the company fell 7% in after-hours trading Thursday as the company missed second-quarter expectations and lowered its full-year guidance after falling same-store sales in recent times.
This is the first time since May 2020 that the company has missed earnings per share estimates, and the first time since December 2020 that it has missed revenue estimates.
StreetAccount data showed that comparable sales fell 1.2% in the second quarter, compared with an 8% increase in the same period last year, well below the 1.2% growth expected by Wall Street analysts.
“While we are encouraged by the many positive indicators across our business, our second quarter results did not meet our expectations, primarily due to lower comparable store sales. We are aware of the adverse impact on our store performance factors, and we have taken actions to address this trend,” CEO Dave Kimbell said in a release.
The company now forecasts full-year same-store sales to be flat to down 2%, compared with previous guidance of growth of 2% to 3%.
Chief Financial Officer Paula Oyibo said: “Our updated sales outlook assumes that more time will be needed before we can take actions to change the revenue trajectory and that stores affected by multiple competing openings will continue to face pressure.
Ulta now expects full-year revenue of $11.0 billion to $11.2 billion, down from its previous forecast of $11.5 billion to $11.6 billion, and full-year earnings per share of $22.60 to $23.50, down from its previous forecast of $25.20 to $26. Dollar.
This is what beauty retailers do Executed for the period ending August 3 Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: $5.30 vs expected $5.46
- income: $2.55 billion vs. $2.61 billion expected
The company reported net income of $252.6 million, or $5.30 per share, compared with $300.1 million, or $6.02 per share, a year earlier.
Revenue rose to $2.55 billion from $2.53 billion in the same period last year.
Earlier this month, Warren Buffett’s Berkshire Hathaway disclosed Stake worth $266 million Beauty retailer Ulta shares soared. To some analysts, this is verify The stock is oversold after falling 32% in 2024, and fell 26% in the second quarter alone.
Ulta shares have been falling since CEO Dave Kimbell issued the warning Cool beauty demand at the April investor conference. Kimbell said that while a pullback was expected, the company was hit “earlier and harder” than expected.
During the company’s first-quarter earnings call in May, Kimbell Outline plan Drive sales across five key areas: product assortment, brand social relevance, enhance consumer digital experiences, enhance loyalty programs, and develop the company’s promotional leverage.
On the same call, Kimbell also said the beauty retailer would expand its partnerships with delivery services later this year door panelwill begin testing a new gamification platform and will launch new marketing technologies to personalize the customer shopping experience.
Clarification: This story has been updated to clarify that Ulta Beauty forecast full-year earnings per share of $22.60 to $23.50, down from the previous forecast of $25.20 to $26.
