Business

Ulta’s share price falls with a weaker outlook than expected, retailers hire Dave Kimbell as CEO

Alta Beauty Sales and profits in the fourth quarter declined year-on-year due to sluggish cosmetics sales during the pandemic, he said Thursday.

Although the decline was smaller than expected, stock prices fell as beauty retailers disappointed the outlook for next year. After the bell, Ulta shares fell by more than 8%.

The company also CEO Mary Dillon He will resign in June to replace President Dave Kimbel.

Dillon will also be transferred to the chairman of the company’s board of directors and will stay for a year.

Ulta’s Chief Operating Officer, Kecia Steelman, will be promoted to Chief Operating Officer.

Compared to what Wall Street analysts predicted using Refinitiv’s research, the company reported in the fourth quarter:

  • Earnings per share: Adjusted $ 3.41 vs. Forecast $ 2.35
  • Revenue: $ 2.2 billion vs. $ 2.08 billion forecast

“The Ulta Beauty team outperformed expectations in the fourth quarter. Strong execution of plans across the enterprise and improved consumer demand trends helped us with multiple metrics such as sales, trading and profitability. Solid results were obtained. “Dillon said in a press release.

Ulta’s fourth-quarter net income was $ 171.5 million ($ 3.03 per share), compared with $ 222.7 million ($ 3.89 per share) in the year-ago quarter.

Excluding items, Ulta earned $ 3.41 per share, above the $ 2.35 per share predicted by analysts surveyed by Refinitiv.

Net sales It decreased from $ 2.31 billion in the previous year to $ 2.2 billion, exceeding the forecast of $ 2.08 billion.

Sales of stores opened in the last 14 months or more decreased by 4.8% due to a decrease in the number of transactions. According to the company, transactions fell 12.2%, but average purchases per ticket increased 8.3%.

In 2021, Ulta expects to generate $ 7.2 billion to $ 7.3 billion in revenue and $ 8.85 to $ 9.30 per share. The earnings forecast includes the impact of a share buyback of approximately $ 850 million.

Analysts expected Ulta to make $ 10.61 per share with $ 7.32 billion in revenue, according to Refinitiv.

Same-store sales range from 15% to 17%, the company said.

Ulta plans to open 40 new stores and renew about 21 stores next year.

Due to the pandemic expansion and slow vaccine deployment, Ulta executives do not expect a strong recovery this year.

Alta’s Chief Financial Officer Scott Settersten said in a conference call, “Although recent sales momentum has encouraged us, the timing of a recovery in demand remains limited. Much of 2021 We expect to continue to be adversely affected by masking requirements and social distance. ” call.

Cosmetology retailers have noticed a decline in cosmetics sales due to an increase in homeowners, but the company remains optimistic about the long-term outlook for this category.

“I see a renewal coming [and] How guests approach makeup behavior, fashion, looks and style will continue to evolve, “says Kimbel.

In November, Ulta announced its next plan. Open a small cosmetics store Within hundreds of target stores nationwide to achieve higher sales and expand its reach.

Cosmetic retailers were hurt by a temporary store closure during a pandemic. After reopening the store in July, the company confirmed that demand had recovered. Strong comeback On its mobile app and e-commerce website.

Read the full revenue release here.

Ulta’s share price falls with a weaker outlook than expected, retailers hire Dave Kimbell as CEO

Source link Ulta’s share price falls with a weaker outlook than expected, retailers hire Dave Kimbell as CEO

Back to top button