Ulta shares tumble on weaker-than-expected outlook, retailer taps Dave Kimbell as CEO

Inside an Ulta retailer location in New York.

Scott Mlyn | CNBC

Ulta Beauty stated Thursday that fourth-quarter gross sales and revenue fell from the prior 12 months, harm by weaker gross sales of cosmetics throughout the pandemic.

Although the decline was smaller than anticipated, shares fell as the sweetness retailer gave a disappointing outlook for the approaching 12 months. Ulta shares fell greater than 8% after the bell.

The firm additionally introduced that its CEO Mary Dillon will step down in June, and get replaced by President Dave Kimbell.

Dillon will even transition to government chair of the corporate’s board.

Kecia Steelman, Ulta’s chief retailer operations officer, can be promoted to chief working officer.

Here’s what the corporate reported for its fourth quarter, in contrast with what Wall Street analysts anticipated, utilizing a survey from Refinitiv:

  • Earnings per share: $3.41, adjusted vs. $2.35 anticipated
  • Revenue: $2.2 billion vs. $2.08 billion anticipated

Ulta reported fiscal fourth-quarter web revenue of $171.5 million, or $3.03 per share, in contrast with $222.7 million, or $3.89 per share, a 12 months earlier.

Excluding objects, Ulta earned $3.41 per share, topping the $2.35 per share anticipated by analysts surveyed by Refinitiv.

Net gross sales fell to $2.2 billion, beating expectations of $2.08 billion.

For fiscal 2021, Ulta expects to earn between $8.85 and $9.30 per share on income of $7.2 billion to $7.Three billion. The earnings forecast contains the affect of about $850 million of inventory buybacks.

Analysts had been anticipating Ulta to earn $10.61 per share on income of $7.32 billion, in line with Refinitiv.

Ulta plans to open 40 web new shops and transform about 21 shops within the coming 12 months.

In November, Ulta introduced plans to open up small beauty retailers inside tons of of Target shops throughout the nation to be able to obtain increased gross sales and increase its attain.

The cosmetics retailer has been harm by short-term retailer closures throughout the pandemic. After reopening shops in July, the corporate noticed its demand return with a sturdy comeback in its cellular app and e-commerce web site.

Read the complete earnings launch right here.

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Written by Business Boy


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