Ulta Beauty Q2 Beats Earnings- Is Ulta Beauty A Buy?

 

Ulta Beauty Q2 Beats Earnings- Is Ulta Beauty A Buy?  Ulta Beauty reported Q2 fiscal 2021 earnings Wednesday and issued a big earnings beat and positive news for the quarter. Ulta posted a beat in earnings revenue and raised venue estimates by more than 10% , beating GAAP EPS estimates by more than 70%.
Fiscal 2021 Outlook
Based on the results for the first six months of fiscal 2021 and revised expectations for consumer demand, the Company has increased its outlook for fiscal 2021.

With strong margins and consumers spending more and getting into the stores, the company reached new heights with the holiday season coming soon. Consumers are spending more on higher priced items and Ulta’s partnership with Target (NYSE:TGT) is increasing sales.

Target Corporation (NYSE: TGT) and Ulta Beauty (NASDAQ: ULTA will be placing Ulta Beauty sections at Target, slated to begin rolling out in more than one hundred Target stores nationwide and online with more than fifty specially curated prestige brands this August.

The differentiated retail concept pairs Ulta Beauty’s industry authority with Target’s beloved experience, bringing a one-of-a-kind beauty experience to millions of guests. The companies are planning for these experiential “shop-in-shops” to reach a total of eight hundred Target stores across the country in the coming years.

Net sales increased 60.2% to $2.0 billion compared to $1.2 billion in the second quarter of fiscal 2020 due to the favorable impact from stronger consumer confidence and fewer COVID-19 restrictions, compared to the second quarter of fiscal 2020.

Comparable sales (sales for stores open at least 14 months, including stores temporarily closed due to COVID-19, and e-commerce sales) increased 56.3% compared to a decrease of 26.7% in the second quarter of fiscal 2020, driven by a 52.5% increase in transactions and a 2.5% increase in average ticket. Compared to the second quarter of fiscal 2019, comparable sales increased 13.1%.

Operating income increased to $332.3 million, or 16.9% of net sales, compared to $12.8 million, or 1.1% of net sales, in the second quarter of fiscal 2020. Adjusted operating income for the second quarter of fiscal 2020 was $54.9 million, or 4.5% of net sales. Diluted earnings per share was $4.56, including a $0.04 benefit due to income tax accounting for share-based compensation, compared to $0.14 in the second quarter of fiscal 2020. Adjusted diluted earnings per share for the second quarter of fiscal 2020 was $0.73.

Source Ulta Beauty Investor Relations


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