On Thursday, Ulta Beauty unveiled robust fourth-quarter holiday results as shoppers include makeup and wellness products in their budgets.
Its stock price went down by -0.80% to $519.93 per share. Likewise, it is anticipated to decrease by -1.55% to $511.85 apiece in the upcoming session.
The earnings per share of Ulta Beauty increased by $6.68, beating the analysts’ $5.63 forecast. As a result, the figures are higher than the previous $5.34 data.
Also, its revenue improved by $3.20 billion, higher than the $3.02 billion estimates. Therefore, it surpassed the prior $2.30 record.
Shoppers keep on saving room in their tighter budgets to purchase beauty products during the celebration season.
According to analysts, the holiday season means more people would buy these products to prepare for parties. Likewise, they buy them items for gifts, and experts describe them as gifting and glamming.
Moreover, the net income of Ulta Beauty rose by 17.80% year-over-year to $340.80 million, or $6.68 a share. It jumps from $289.40 million, or $5.41 per share, in 2021’s fourth quarter.
During the first half of 2023, the firm looks forward to its growth in that period. Higher prices would not come down. However, the company plans on decelerating its price hike levels, said CEO Dave Kimbell.
New Stores from Ultra Beauty Plan on Opening
Due to the better-than-expected sales, Ulta Beauty said it plans on adding another 100 new brick-and-mortar stores. The entity plans on achieving the goal within two years.
Besides, Kimbell said the company would include 25 to 30 new locations this year. In 2022, it opened 12 stores in the fourth quarter and 47 in 2022. As a result, Ulta had 1,355 total locations by the end of the year.
Also, he added that as they move into fiscal 2023, they remain optimistic about the resiliency of the beauty category. They look forward to expanding their leadership position and capturing market share gains. The company is set to drive long-term value for all its stakeholders.