S&P 500 fashion and make up stock Ulta Beauty reported better-than-expected third-quarter earnings and revenue late Thursday, as same-store sales increased more than Wall Street predicted. ULTA shares surged Friday.
The specialty beauty retailer announced EPS fell around 5% to $5.07 in Q3, less than expected, while revenue grew 6% to $2.49 billion. Meanwhile, comparable sales increased 4.5% in the quarter, beating expectations of a 3.3% increase. Wall Street forecast Q3 profit totaling $4.96 per share with sales of $2.47 billion.
Ulta Beauty also revised higher its full-year guidance ranges Thursday. The make up stock now predicts 2023 sales of $11.10 billion-$11.15 billion, up from its previous forecast of $11.05 billion -$11.15 billion.
The company also sees same-store sales increasing around 5%-5.5% in 2023, a more optimistic view compared its prior expectation of 4.5%-5.5%.
"As we look to the future, the outlook for the beauty category is bright, and I am confident Ulta Beauty has the right plans in place to delight our guests this holiday season, expand our leadership position in specialty beauty retail and deliver long-term shareholder growth," Chief Executive Dave Kimbell said in the earnings release Thursday.
S&P 500 Make Up Stock Performance
The S&P 500 make up stock surged 10.8% to 472.01 Friday during market action. ULTA shares are wrapping up a six-week rally, rebounding off a late-October low. The S&P 500 component gained more than 11% in November but has dropped more than 9% in 2023.
Ulta Beauty is headed toward a market cap of more than $23 billion.
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