Magnificence retailer Ulta shares soar after lifting full 12 months outlook

Investing.com — Ulta Magnificence Inc (NASDAQ:ULTA) raised its full-year 2024 outlook on Thursday, amid regular demand for skincare and make-up merchandise, sending its shares up in fter-hours buying and selling. It’s presently up 11.5% premarket.

Excluding objects, Ulta earned $5.14 per share within the third quarter, up from $5.07 per share a 12 months earlier. Web gross sales for the quarter ended November 2 got here in at $2.49 billion.

“Ulta Magnificence group delivered better-than-expected gross sales and profitability reflecting improved gross sales traits and powerful monetary self-discipline,” chief govt officer, Dave Kimbell mentioned.

Kimbell added that the corporate stays assured in its methods to drive long-term development and strengthen its place as a number one vacation spot for magnificence lovers.

Demand for magnificence and private care merchandise has remained resilient within the U.S. regardless of strain on customers’ discretionary spending.

Ulta now expects adjusted earnings per share for fiscal 2024 to vary between $23.20 and $23.75, up from its prior forecast of $22.60 to $23.50.

The corporate additionally bumped its decrease finish of the web gross sales information to $11.1 billion to $11.2 billion, in contrast with its earlier projection of $11.0 billion to $11.2 billion.

“Following a number of robust prints, [the[ 3Q results were a relief,” said analysts at Wells Fargo (NYSE:WFC). “Comps got back to positive, FY plan was raised and with num already reset for 2025 a new pos revision cycle begins. We remain UW on structural concerns that will take more time to prove wrong.”

Meanwhile, Bank of America said the company’s initiatives to drive growth are gaining traction. The bank, which raised its target for Ulta to $460 from $400, added that they are reiterating a Neutral rating on the stock as “long-term sales opportunities are balanced by near-term revenue and margin pressure.”