Beat And Raise: Ulta Beauty Stock Gets A Boost From Q2 Earnings

Ulta Beauty Inc ULTA reported second-quarter financial results after the close. Here's a rundown of the report and a look at what's pushing shares higher after hours.

What Happened: Ulta said second-quarter revenue increased 10.1% year-over-year to $2.53 billion, which beat the consensus estimate of $2.51 billion, according to Benzinga Pro. 

The beauty retailer reported quarterly earnings of $6.02 per share, which beat analyst estimates of $5.85 per share. Ulta also beat estimates on both the top and bottom line in the prior ten quarters. 

A 9% increase in transactions and a 1% decrease in average ticket results in a comparable sales increase of 8% year-over-year. Gross profit was up 7.1%, SG&A expenses increased 12.4%, and operating income represented 15.5% of net sales. 

Ulta spent $275.5 million repurchasing shares during the quarter. The company ended the quarter with $388.6 million in cash and equivalents. 

"During the quarter, we drove growth across all major categories, increased the number of loyalty members, and strengthened engagement with the Ulta Beauty brand," said Dave Kimbell, CEO of Ulta.

"The beauty category has continued to deliver healthy growth, as consumers maintain their post-pandemic routines and expand their definition of beauty."

Ulta raised its full-year 2023 revenue from a range of $11 billion to $11.1 billion to a new range of $11.05 billion to $11.15 billion versus estimates of $11.13 billion. 

The retailer also raised its full-year adjusted earnings guidance from a range of $24.70 to $25.40 per share to a new range of $25.10 to $25.60 per share versus estimates of $25.26 per share. 

Ulta management will hold a conference call to discuss its second-quarter results at 4:30 p.m. ET.

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ULTA Price Action: Ulta shares were up 2.43% after hours at $433 at the time of writing, according to Benzinga Pro.

Photo: ARTEM DA PICTURES from Pixabay.