Ulta Beauty Earnings: ULTA Stock Tumbles 3% on Major Q1 Miss

Ulta Beauty (NASDAQ:ULTA) earnings for first quarter of 2020 have ULTA stock falling after-hours Thursday. That comes after reporting diluted losses per share of $1.39, which is much worse than Wall Street’s estimate of earnings per share (EPS) of 68 cents. Its revenue of $1.17 billion also misses analysts’ estimates of $1.25 billion.

Ulta Beauty Earnings: ULTA Stock Tumbles 3% on Major Q1 Miss

Source: Jonathan Weiss / Shutterstock.com

Let’s take a closer look at the most recent Ulta Beauty earnings report below.

  • Diluted per-share losses are a major decline compared to its diluted EPS of $3.26 in the first quarter of 2019.
  • Revenue for the quarter comes in 32.7% lower than the $1.74 billion from the same time last year.
  • Operating loss of $101.5 million is a negative switch year-over-year from an operating income of $237.5 million.
  • The Ulta Beauty earnings also have it reporting a net loss of $78.5 million.
  • That’s a massive decrease from the company’s net income of $192.2 million from the same period of the year prior.

Mary Dillon, CEO of Ulta Beauty, said this about the Q1 earnings report:

“For much of the first quarter, Ulta Beauty operated as a digital-only business, and while e-commerce sales exceeded our expectations, it was not enough to fully offset the impact of our store closings.”

Ulta Beauty isn’t offering specific guidance for 2020 EPS or revenue. Despite this, it does mention plans to reduce store openings during the year. It’s also expecting capital expenditures to range from $200 million and $210 million during the year.

ULTA stock was down 3.4% after markets closed on Thursday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/ulta-beauty-earnings-hit-stock/.

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