Shares of Ulta Beauty tumbled in after-hours trading Thursday after the beauty products retailer scaled back its outlook for the fiscal year.
Ulta Beauty stock (ticker: ULTA), up 38% in 2019 through Thursday’s close at $337.45, was off 25% at $254.00 in pre-open trading. The company said earnings for its fiscal second quarter (ended Aug. 3) were $2.76 per share on sales of $1.67 billion and same-store sales growth of 6.2%.
Wall Street was looking for earnings of $2.80 per share on revenue of $1.16 billion and 6.6% same-store sales growth.
In a statement, CEO Mary Dillon cited headwinds in the U.S. cosmetics business. “We remain confident that our guest-centric, differentiated business model will drive continued market share gains and strong returns for our shareholders over the long term,” she said.
A conference call was scheduled for 5 p.m. ET.
Management said Thursday it now sees full-year sales growing between 9% and 12%, down from previous guidance of “low double-digit growth.” Same-store sales growth is now seen at 4% to 6%, down from 6% to 7%.
Wall Street’s current consensus expectation for sales, $7.54 billion, suggests 12% sales growth. Same-store sales growth is projected at 6.7%.
Full-year earnings are now seen at $11.86 to $12.06 per share, down from $12.83 to $13.03. Wall Street is looking for $12.97, according to FactSet.
The new numbers disappointed investors who had hoped Ulta would continue to profit from its efforts to take market share from other merchants that sell beauty products. Earlier this month, Estée Lauder’s (EL) latest results were comparatively upbeat.
In last year’s second quarter, the company reported earnings of $2.46 per share on revenue of $1.49 billion and same-store sales growth of 6.5%.
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