Inside an Ulta retailer location in New York.
Scott Mlyn | CNBC
Ulta Beauty mentioned Thursday that fourth-quarter gross sales and revenue fell from the prior 12 months, harm by weaker gross sales of cosmetics through the pandemic.
Though the decline was smaller than anticipated, shares fell as the wonder retailer gave a disappointing outlook for the approaching 12 months. Ulta shares fell greater than 8% after the bell.
The corporate additionally introduced that its CEO Mary Dillon will step down in June, and get replaced by President Dave Kimbell.
Dillon may also transition to govt chair of the corporate’s board.
Kecia Steelman, Ulta’s chief retailer operations officer, will likely be promoted to chief working officer.
Here is what the corporate reported for its fourth quarter, in contrast with what Wall Road analysts anticipated, utilizing a survey from Refinitiv:
- Earnings per share: $3.41, adjusted vs. $2.35 anticipated
- Income: $2.2 billion vs. $2.08 billion anticipated
“The Ulta Magnificence crew delivered better-than-expected outcomes for the fourth quarter. Robust, enterprise-wide execution of our plans, mixed with bettering traits in shopper demand, resulted in stable outcomes throughout a number of metrics, together with gross sales, transactions and profitability,” Dillon mentioned in a press launch.
Ulta reported fiscal fourth-quarter internet revenue of $171.5 million, or $3.03 per share, in contrast with $222.7 million, or $3.89 per share, a 12 months earlier.
Excluding objects, Ulta earned $3.41 per share, topping the $2.35 per share anticipated by analysts surveyed by Refinitiv.
Web gross sales fell to $2.2 billion from $2.31 billion a 12 months in the past, beating expectations of $2.08 billion.
Gross sales at shops open no less than 14 months fell 4.8% within the newest interval, harm by fewer transactions. The corporate mentioned transactions declined 12.2%, nonetheless, the common buy per ticket rose 8.3%.
For fiscal 2021, Ulta expects to earn between $8.85 and $9.30 per share on income of $7.2 billion to $7.3 billion. The earnings forecast contains the affect of about $850 million of inventory buybacks.
Analysts had been anticipating Ulta to earn $10.61 per share on income of $7.32 billion, based on Refinitiv.
Identical-store gross sales are anticipated to be within the vary of 15% to 17%, the corporate mentioned.
Ulta plans to open 40 internet new shops and transform about 21 shops within the coming 12 months.
In November, Ulta introduced plans to open up small cosmetic shops inside a whole bunch of Goal shops throughout the nation to be able to obtain larger gross sales and develop its attain.
The cosmetics retailer has been harm by short-term retailer closures through the pandemic. After reopening shops in July, the corporate noticed its demand return with a strong comeback in its cell app and e-commerce web site.
