Ulta Salon (ULTA) Tops Q3 EPS by 15c

Ulta Salon (NASDAQ: ULTA) reported Q3 EPS of $1.64, $0.15 better than the analyst estimate of $1.49. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.56 billion.

Fiscal 2020 Outlook:

“Ulta Beauty is well positioned for this gift giving season as consumers continue to seek moments of joy, connection and self-care, and we are encouraged with early holiday sales trends in November. However, the operating environment continues to be dynamic. While it is difficult to predict future impacts of the pandemic on demand this holiday season, we have increased our sales expectations for the fourth quarter and now anticipate comparable store sales will decline in the range of 12% to 14%,” continued Dillon. "We know this holiday season will be like no other, but our team is ready and excited to help our guests see the joy of the season.”

The Company withdrew guidance for fiscal 2020 on March 17, 2020 and is not providing an earnings outlook at this time. However, the Company is providing the following updated assumptions for fiscal 2020:

The Company continues to expect to open approximately 30 new stores and execute approximately five relocation projects. Although plans for fiscal 2021 have not been finalized, the Company continues to expect to open at least 30 new stores in fiscal 2021. The Company will continue to evaluate these plans based on demand and location economics, including committed costs incurred;

• The Company expects to incur between $180 million and $190 million in PPE and COVID-19 related operating costs, excluding approximately $51 million reduction of SG&A expenses as a result of the employee retention credits made available under the CARES Act;
• The Company now expects to incur between $30 million and $40 million in conjunction with the decision to suspend its planned expansion to Canada; and
• The Company anticipates capital expenditures will be between $150 million and $160 million, compared to the previous expectation of between $180 million and $200 million.

For earnings history and earnings-related data on Ulta Salon (ULTA) click here.

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