Ulta Salon, Cosmetics & Fragrance's (ULTA) CEO Mary Dillon On Q1 2017 Results Earnings Call Transcript
Ulta Beauty(NASDAQ: ULTA) slid last month, after the salon chain turned in a disappointing fourth-quarter outlook in its December earnings report and said it would open fewer stores than expected. Pressure from the broader market sell-off also weighed on the stock. As a result, Ulta shares finished December down 18%, according to data from S&P Global Market Intelligence.
As the chart below shows, the stock tumbled on Dec. 7 after the earnings report, and remained down as the rest of the market sold off:
Ulta shares fell 13% on Dec. 7 after its third-quarter earnings report came out. The beauty specialist delivered another solid round of results, but its future outlook seemed to turn off investors.
Comparable sales surged 7.8%, showing the brand continued to resonate with customers and remains a best-in-class retailer, and overall revenue increased 16.2% to $1.56 billion, as both in-store and e-commerce performance were strong. That growth drove earnings per share up 28.2% to $2.18 as the company benefited from a lower tax rate from the tax reform law.
CEO Mary Dillon summed up the performance: "Ulta Beauty's strong performance in the third quarter reflects continued market share gains across all major categories, acceleration in our overall comp driven by healthy traffic, excellent new store productivity, and robust e-commerce growth."