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Ulta Beauty Misses Earnings, Cuts Guidance; Shares Plunge

Published 08/29/2019, 04:06 PM
Updated 08/29/2019, 04:44 PM
© Reuters.  Ulta Beauty Earnings, Revenue Miss in Q2

Investing.com - Ulta Beauty cut its guidance on profits on Thursday after reporting second-quarter earnings that missed analysts' expectations on both the bottom and top lines, with the company blaming current headwinds in U.S. cosmetics.

Ulta Beauty (NASDAQ:ULTA) sees full-year earnings per share in the range of $11.86 to $12.06, down from a prior range of $12.83 to $13.03.

The company reported earnings per share of $2.72 on revenue of $1.67 billion. Analysts polled by Investing.com anticipated earnings per share of $2.8 on revenue of $1.68 billion. That compared to earnings per share of $2.46 on revenue of $1.49 billion in the same period a year earlier. The company had reported earnings per share of $3.26 on revenue of $1.74 billion in the previous quarter.

Comparable sales increased 6.2% in the quarter, driven by 5.4% transaction growth and 0.8% growth in average ticket.

"Looking forward, we have updated our fiscal 2019 outlook to reflect the headwinds we are currently seeing in the U.S. cosmetics market," CEO Mary Dillon said in a statement.

"We remain confident that our guest-centric, differentiated business model will drive continued market share gains and strong returns for our shareholders over the long term."

Ulta Beauty (NASDAQ:ULTA) shares lost more than 20% in postmarket trading.

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