By Sam Boughedda
Ulta Beauty (NASDAQ:ULTA) shares rose in extended trading after the company reported its third-quarter earnings, topping analyst consensus expectations.
The beauty salon company posted earnings of $5.34 per share on revenue of $2.3 billion, above analyst expectations of $4.09 on revenue of $2.2B.
Net sales were boosted by the favorable impact of continued resilience in the beauty category, retail price increases, and the impact of new brands and product innovation compared to the same period last year. Comparable sales grew 14.6% compared to 25.8% in Q3 fiscal 2021, driven by a 10.7% rise in transactions and a 3.5% increase in average ticket.
The company said it performed well during the quarter despite the challenging macro backdrop.
"Our third quarter results reflect the sustained resilience of the beauty category and the strong emotional connection and loyalty we have cultivated with our guests. I am confident our business model, which offers unmatched breadth, value, and convenience, is even more relevant today and unlocks opportunities to further delight guests as we continue to lead the beauty category," stated Dave Kimbell, Ulta Beauty's chief executive officer.
The company's shares are currently up over 2% after gaining 1.65% in the regular session.
Ulta Beauty raised its fiscal 2022 outlook and now sees earnings per share between $22.60 and $22.90, versus the consensus of $21.40, with revenue for the period from $9.95B to $10B, versus the consensus of $9.77B.