Ulta Beauty posted an increase in comparable sales and topped Wall Street estimates although net income declined year over year.
Net income was $230.9 million compared to $242.2 million in the year-before quarter while diluted earnings per share were flat at $5.14
A MarketBeat-published analyst consensus estimate had earnings at $4.61 and revenues at $2.7 billion.
Comparable sales advanced 6.3% in the quarter year over year, the company reported, based on a 3.8% increase in average ticket and a 2.4% increase in transactions.
Net sales increased $2.86 billion from $2.53 billion in the year-earlier quarter, the company noted, primarily due to increased comparable sales, the acquisition of luxury beauty retailer Space NK and net new store contribution
Operating income was $309.4 million versus $318.5 million in the year-prior period.
Ulta reported SG&A expenses increased to $840.9 million from $682.3 million in the year-pat quarter, mostly because of higher incentive compensation, store payroll and benefits, store expenses and amortization of cloud-based software investments.
Ulta updated its full-year guidance from net sales in the range of $12 billion to $12.1 billion to $12.3 billion, comps from 2.5% to 3.5% up to 4.4% to 4.7% and diluted earnings per share from $23.85 to $24.30 to between $25.20 to $25.50.
Ulta President and CEO Kecia Steelman, speaking in a conference call, said personal styling tool sales declined in the third quarter under pressure from tariff-related price increases.
In announcing the financial results, Steelman said, “Our third-quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed Strategy. Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels, with notable strength in e-commerce. As we look ahead to the all-important holiday season, we know many consumers’ wallets are pressured and they are seeking value.”
