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Earnings Results: Ulta Beauty raises 2021 outlook on ‘recovery’ for beauty products retail

Ulta Beauty Inc. stock rose nearly 4% in the after-hours session Wednesday after the beauty-product retailer beat Wall Street forecasts for its second quarter and raised its outlook for the year, saying that its industry experienced a “recovery.”

Ulta Beauty
ULTA,
+4.29%

said it earned $250.9 million, or $4.56 a share, compared with $8.1 million, or 14 cents a share, in the year-ago period.

Sales rose 60% to $2 billion from $1.2 billion a year ago, with same-store sales up 56%. Same-store sales rose 6% as compared with the second quarter of 2019, Ulta said.

Analysts polled by FactSet expected the company to report EPS of $2.57 on sales of $1.8 billion.

The company’s performance reflects “the recovery of the beauty category,” Chief Executive Dave Kimbell said in a statement. “Our value proposition is strong, and we are evolving and innovating to lead in the new beauty landscape, capture additional market share, and drive profitable growth,” he said.

Ulta called for fiscal 2021 net sales between $8.1 billion and $8.3 billion, versus a previous estimate of sales between $7.7 billion and $7.8 billion. It targets to end the year with 44 new stores, from an earlier estimate of 40 new stores.

It forecasts EPS between $14.50 and $14.70 for the year, compared with an earlier forecast of EPS between $11.50 and $11.95. Any impact related to the resurgence of COVID-19 cases has not been included, the company said.

Ulta Beauty and Target Inc.
TGT,
+0.20%

revealed last month the list of the first 100 Target stores to get an Ulta shop this August; the two retailers announced their partnership in November, planning to get to a total of 800 store locations in the coming years.

Ulta shares have gained 36% so far this year, compared with an advance of 20% for the S&P 500 index
SPX,
+0.22%
.

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