Ulta Beauty sinks after posting a disappointing guidance (ULTA)

ulta beauty 7814Business Insider/Jessica Tyler

  • Ulta Beauty reported third-quarter earnings that topped expectations, but guidance was light.
  • Shares fell more than 6% following the results.
  • The stock has been rallying since August 30 — up 18.8% — when Kylie Jenner announced she would sell her cosmetic brand in Ulta Beauty stores during the holiday shopping season. 
  • Watch Ulta Beauty trade live.

The cosmetics retailer Ulta Beauty fell as much as 7.05% to $272.27 a share late Thursday after the company reported disappointing guidance.

Here are the key numbers compared to what analysts are expecting according to Bloomberg:

  • Adjusted earnings per share: $2.18 versus an expected $2.16
  • Revenue:  $1.56 billion versus an expected $1.56 billion
  • Q4 Guidance: $3.50 to 3.55 versus an expected $3.62

“Ulta Beauty’s strong performance in the third quarter reflects continued market share gains across all major categories, acceleration in our overall comp driven by healthy traffic, excellent new store productivity, and robust e-commerce growth,” CEO Mary Dillon said in a press release.

Shares were little changed before the results on Thursday, trading near $290 apiece. The stock has been rallying since August 30 — up 18.8% — when reality star Kylie Jenner announced she would sell her cosmetic brand in Ulta Beauty stores during the holiday shopping season. 

 “I’m so excited to let you guys know that @KylieCosmetics will be coming to all @ultabeauty stores around the country this holiday!” the 21-year-old entrepreneur tweeted in August to her 25 million followers, adding that there was “more to come…” 

Wall Street has been waiting to see how the partnership can drive traffic.

“Traffic surrounding the Kylie Cosmetics launch was particularly strong; checks through Black Friday weekend point to meaningful share transfer from legacy channels to Specialty formats,” Stephanie Wissink, a Jefferies analyst said ahead of the earnings release.

“Our webscrapes related to the ‘newness’ factor also point to a growing number of ‘exclusive’ stock keeping units and higher week/week changeovers, especially online.”

Wissink had a buy rating and price target of $335 — 15.5% above where shares were trading Thursday.

Ulta Beauty was up 26.34% this year through Thursday.

Now read:


Source link

more recommended stories

  • Video shows men in an over-crowded facility yelling “no shower”

    A video taken and posted on.

  • Sharp and McCann show the future of British boxing is fun and flashy

    02 ARENA, LONDON — Red hot.

  • Jeffrey Epstein launched PR campaign after 2008 sex abuse allegations

    Jeffrey Epstein launched a PR campaign.

  • Prime Day 2019 KitchenAid Stand Mixer deals — sale predictions

    There are some things that never.

  • The best vacuum deals we expect to see during Prime Day 2019

    No matter how diligently you clean.

  • Asylum seeker describes baby’s death from poor medical care in ICE custody

    WASHINGTON (AP) — A Guatemalan mother.

  • A new holding center for migrant children opened in rural Texas

    CARRIZO SPRINGS, Texas (AP) — A.

  • Video seems to show Trump embrace staffer who says he forcibly kissed

    President Donald Trump’s attorneys were accused.

  • How to back up photos from an iPhone with iCloud storage

    If you’re someone who loves taking.

  • Famous people who have flown on Jeffrey Epstein’s private plane

    The financier Jeffrey Epstein, the convicted.

  • 9 questions you should ask flight attendants next time you fly

    Getting on a plane is a.

  • DOJ to swap interpreters with videos at immigration hearings

    The Department of Justice is planning.

  • Federal court ruled against bikini baristas at Washington coffee bars

    Women serving coffee at the Hillbilly.

  • Greece election: Conservative party beats left-wing prime minister

    In his concession speech, Mr Tsipras.

  • Photos of US Navy guided missile destroyer USS Jason Dunham

    During the final days of June,.

  • No-deal Brexit: Boris Johnson to be hit by dozens of new Tory rebels

    LONDON — Dozens more Conservative MPs.

  • Turkey is last major Islamic state not to stand up for China’s Muslims

    In recent months, a wave of.

  • PHOTOS: Sophie Turner’s wedding dress with husband Joe Jonas

    Sophie Turner and Joe Jonas had.

  • The winners and losers of the opening days of NBA free agency

    The NBA offseason has been fast.

  • European stocks are jumping as traders bet on loose Fed policy, while US markets break for the Fourth of July

    Ritzau Scanpix Denmark/Reuters US markets were.

  • Megan Rapinoe shuts down critics: ‘I think I’m extremely American’

    Megan Rapinoe has been no stranger.

  • Steve Irwin and son fed the same crocodile 15 years apart

    Steve Irwin’s 15-year-old son Bob is.

  • Serena Williams will wait before giving Meghan Markle parenting advice

    Serena Williams says she will wait.

  • Stocks are dropping on trade-war jitters after Trump threatens another $4 billion in tariffs on EU goods

    Assoicated Press/Alex Brandon US stocks slid.

  • I went to Times Square to see why tourists love it

    Growing up on Long Island, I.

  • The one place you have to eat in Tokyo, according to chefs

    Boasting a wide array of cuisines.

  • Megan Rapinoe’s brand Twitter was turned pro-Trump

    A Twitter account for the personal.

  • Kamala Harris had her biggest day of fundraising after attacking Biden

    Sen. Kamala Harris, a California Democrat,.

  • Trump vows appeal after judge blocks use of some border wall funds

    (Reuters) – US President Donald Trump.

  • Average wage earners can’t afford mid-priced homes

    According to a 2019 US Home.

  • Putin praised Trump’s immigration policies and said liberalism is dead

    Russian president Vladimir Putin said liberalism.

  • Apple’s Jony Ive is leaving the company to create his own design firm

    Jony Ive, Apple’s famed longtime design.