Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ: ULTA) will be announcing earnings results this Tuesday after market hours. Here’s what to expect.
Ulta beat analysts’ revenue expectations last quarter, reporting revenues of $3.90 billion, up 11.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ gross margin estimates but full-year EPS guidance slightly missing analysts’ expectations.
Is Ulta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ulta’s revenue to grow 9.4% year on year, improving from the 4.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ulta rarely misses Wall Street’s revenue estimates.
Looking at Ulta’s peers in the beauty and cosmetics retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bath and Body Works’s revenues decreased 3.2% year on year, beating analysts’ expectations by 1.2%, and Warby Parker reported revenues up 8.3%, topping estimates by 1.3%. Bath and Body Works traded up 14.8% following the results while Warby Parker was also up 34.1%.
Read our full analysis of Bath and Body Works’s results here and Warby Parker’s results here.
There has been positive sentiment among investors in the beauty and cosmetics retailer segment, with share prices up 4.2% on average over the last month. Ulta is down 1.7% during the same time and is heading into earnings with an average analyst price target of $678.88 (compared to the current share price of $509.28).
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