Ulta Magnificence mentioned Thursday that fourth-quarter gross sales and revenue fell from the prior 12 months, harm by weaker gross sales of cosme
Ulta Magnificence mentioned Thursday that fourth-quarter gross sales and revenue fell from the prior 12 months, harm by weaker gross sales of cosmetics throughout 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 will even transition to government chair of the corporate’s board, the place she plans to stay for a 12 months.
Kecia Steelman, Ulta’s chief retailer operations officer, will likely be promoted to chief working officer.
This is what the corporate reported for its fourth quarter, in contrast with what Wall Avenue 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 workforce 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 web earnings 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 gadgets, 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 a minimum of 14 months fell 4.8% within the newest interval, harm by fewer transactions. The corporate mentioned transactions declined 12.2%, nonetheless, the typical 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.Three billion. The earnings forecast consists of the impression of about $850 million of inventory buybacks.
Analysts had been anticipating Ulta to earn $10.61 per share on income of $7.32 billion, in line with Refinitiv.
Similar-store gross sales are anticipated to be within the vary of 15% to 17%, the corporate mentioned.
Ulta plans to open 40 web new shops and transform about 21 shops within the coming 12 months.
Because of the pandemic stretching on and the sluggish vaccine rollout, Ulta executives don’t count on a robust restoration this 12 months.
“Whereas we’re inspired by current gross sales momentum, visibility into the timing of a requirement restoration stays restricted. We count on a lot of 2021 will proceed to be negatively impacted by masking necessities and social distancing,” mentioned Ulta’s Chief Monetary Officer Scott Settersten in a convention name.
Though the wonder retailer observed a decline in make-up gross sales attributable to extra individuals staying dwelling, the corporate stays optimistic within the class’s long-term prospects.
“We see a renewal coming in [and] how our visitors will have interaction in make-up behaviors, fashions, the seems to be, the kinds, will proceed to evolve,” mentioned Kimbell.
In November, Ulta introduced plans to open up small beauty retailers inside lots of of Goal shops throughout the nation with a purpose to obtain larger gross sales and increase its attain.
The cosmetics retailer has been harm by non permanent retailer closures throughout the pandemic. After reopening shops in July, the corporate noticed its demand return with a robust comeback in its cell app and e-commerce web site.
Learn the total earnings launch right here.