Ulta Beauty Inc (NASDAQ:ULTA) raises its full-year sales outlook

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Ulta Beauty Inc (NASDAQ:ULTA) stock fell 1.87% (As on Dec 3, 11:49:22 AM UTC-4, Source: Google Finance) though the company raised its full-year sales outlook after reporting bumper third-quarter results, driven by a boost from the reopening. Comparable sales increased 25.8%, driven by a 16.8% increase in transactions and a 7.7% increase in average ticket. The company’s bottom line totaled $215.29 million compared with $74.80 million, in last year’s third quarter. Gross profit increased to $789.5 million compared to $545.5 million in the third quarter of fiscal 2020. As a percentage of net sales, gross profit increased to 39.6% compared to 35.1% in the third quarter of fiscal 2020, primarily due to leverage of fixed costs, favorable channel mix shifts, leverage of salon expenses, and improvement in merchandise margins. Cash and cash equivalents at the end of the third quarter of fiscal 2021 were $605.1 million. Merchandise inventories, net at the end of the third quarter of fiscal 2021 totaled $1.92 billion compared to $1.44 billion at the end of the third quarter of fiscal 2020. The $477.2 million increase in inventory was primarily due to the addition of 40 net new stores opened since October 31, 2020, and the acceleration of inventory receipts to support expected demand and mitigate anticipated global supply chain disruption. At the end of the third quarter of fiscal 2021, the company operated 1,302 stores totaling 13.7 million square feet.

ULTA in the third quarter of FY 21 has reported the adjusted earnings per share of $3.94, beating the analysts’ estimates for the adjusted earnings per share of $2.44. The company had reported the adjusted revenue growth of 29 percent to $2.44 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $1.88 billion. Adjusted operating income for the third quarter of fiscal 2020 was $124.9 million, or 8.0% of net sales.

Additionally, during the third quarter of fiscal 2021, the Company repurchased 340,668 shares of its common stock at a cost of $126.4 million. As of October 30, 2021, $759.8 million remained available under the $1.6 billion share repurchase program announced in March 2020.

For the full-year 2022, sales were expected to be in the range of $8.5 billion to $8.6 billion, up from prior guidance of $8.1 billion to $8.3 billion. That compared with Wall Street estimates for $8.36 billion.

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