Ulta Salon Cosmetics & Fragrance (NASDAQ:ULTA) Consumer Discretionary - Specialty Retail | Reports August 25, After Market Closes
Key Takeaways
- The Estimize consensus is calling for earnings per share of $1.44 on $1.07 billion in revenue, 5 cents higher than Wall Street on the bottom line and right in line on the top
- Ulta has topped expectations in each of the past 8 quarters thanks to strong traffic growth and improving merchandise mix
- Ulta’s market position, strategic outlook, and burgeoning cosmetics and beauty care products should be enough to continue its historic run.
- What are you expecting for ULTA?
Ulta is firing on all cylinders heading into its second quarter results tomorrow afternoon. The beauty products retailer has topped expectations in each of the past 8 quarters.
Even more astounding is that year over year comparisons over this streak have topped 20%. Same store sales have performed just as well, eclipsing the double digit mark in each of the past 6 quarters. Last quarter’s jump of 15.2% was by far the biggest the company has seen over this remarkable streak. There is little evidence to believe tomorrow’s results won’t extend the current winning streak.
Analysts at Estimize are calling for earnings per share of $1.44, 25% higher than the same period last year. That estimate has been flat in the month leading up to Ulta’s report.
Revenue for the period is estimated up 21% to $1.07 billion, extending its streak of 20% revenue gains. Shares are up a whopping 70% in the past 12 months months and historically increase 5% following an earnings report.
Beauty products have been largely immune to the downturn in the retail sector over the past year. Part of this is due to the nature of cosmetics which have proven to be resilient during times of economic distress.
This ongoing trend coupled with an improving merchandise mix has driven strong traffic growth. Ulta’s market position, strategic outlook, and burgeoning offering of cosmetics and beauty care products should be enough to continue its historic run.
Do you think ULTA can beat estimates?