Ulta Beauty (ULTA) Q3 2022 Results

Shoppers line up outside Ulta Beauty before the 6am opening on Black Friday.

Aimee Dilger | Light flare | Getty Images

Ultimate beauty Thursday boosted its outlook and beat Wall Street expectations for quarterly earnings and sales as shoppers continued to restock their makeup bags even as they paid more at the grocery store.

CEO Dave Kimbell said that as shoppers weigh their buying decisions amid rising prices, they are still choosing to spend on beauty. In a press release, he said Ulta’s results “reflect the continued resilience of the beauty category and the strong emotional connection and loyalty we have cultivated with our customers.”

Shares of the company hit a 52-week high of $477.08 on Thursday and were up another 3% in aftermarket trading.

Here’s how the company fared in the three-month period ending October 29, compared to Refinitiv’s consensus estimates:

  • Earnings per share: $5.34 vs $4.15 estimated
  • Revenue: $2.34 billion vs $2.21 billion estimated

Net income rose 27.5% to $274.6 million, or $5.34 per share, from $215.29 million, or $3.94 per share, a year ago.

Same-store sales climbed 14.6% year-over-year. The growth comes on top of a 25.8% jump a year ago and far exceeds the 8.8% increase analysts expected for the third quarter, according to StreetAccount.

The retailer said it now expects annual earnings of between $22.60 and $22.90 per share and annual revenue of between $9.95 billion and $10 billion. That’s significantly higher than an earlier forecast of between $20.70 and $21.20 per share on revenue of between $9.65 billion and $9.75 billion.

The increased guidance also beat Wall Street expectations: Analysts were looking for full-year projections of $21.40 in earnings per share and $9.77 billion in revenue.

The company estimates that for the full year, its comparable sales will be 12.6% to 13.2% higher than the prior year period, compared to an earlier forecast of 9.5% growth. at 10.5%.

The company said its strong third quarter was due in part to the sale of higher-priced products.

Ulta posted a profit margin of 41.2%, significantly higher than the 39.6% it reported a year ago and the 39.3% that analysts had expected, according to StreetAccount estimates.

As of Thursday’s close, Ulta shares are up about 15% so far this year. That compares to the S&P 500, which is down about 14% year-to-date. The company’s shares closed at $472.53, bringing the company’s market value to around $24 billion.

This story is developing. Please check for updates.

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