The fiscal development of Ulta Beauty has continued to record strong performances as it was shown in its latest earnings result, with sales in its year-ending quarter mounting swiftly even in the face of a competitive market.
Ulta Beauty is one of the major beauty stores globally, which offers an easy-shopping experience for prestige beauty products such as cosmetics and salon products. With that being said, it offers salon services as well. It is presently the most progressive field retailer around.
Results for the beauty line were quite remarkable with sales soaring 23.7% and earnings per share climbing 30.9%.
2016 was exceptional for Ulta Beauty in both of its sales and earnings as the beauty giant stacked up sales of $4.9 billion up from $3.9 billion in 2016 in which was a much better than expected result. Comparable sales soared 15.8%, driven by 7% development in communications and 5.1% in usual coupon. Consequently, net income developed 28% to $409.8 million and income per diluted shares mounted to $6.52 per diluted share in comparison to $4.98 in fiscal 2015. The fiscal year concluded with a correspondingly resilient fourth quarter, where sales rose 24.6%; comparable store sales amplified 16.6%, net income raised by 30% and earnings per sale surged 32.6% to $2.24.
Causative to the sales development was a tough e-commerce sector in where comparable sales climbed 56.2% to $345.3 million for the year, on behalf of the 240 basis points of the business’s 15.8% total comparable sales upsurge. Throughout the year, the corporation erected 100 stores, ending the year with 974 entities presently.
In other news, there are two primary events that will headway in the fiscal 2017 in which will support in withstanding the development of Ulta Beauty in the future. One of the main plans is the accumulation of Estée Lauder’s MAC products. These product additions will start in Spring and will be in 100 stores by the culmination of the fiscal year. With demands higher than expected, MAC is a significant addition to Ulta’s variety. Bagging this trademark is a tangible acknowledgement to the corporation’s strong association for the beauty industry. This will likely influence the stock to progress more with its current momentum.
The MAC franchises will subjugate around 200 sq. ft. per Ulta channels, which will add to the stock around 600 SKUs, comparable to the 1,200 SKUs it stocks in department stores. MAC said the merchandise being stocked at Ulta were selected after the close partnership between the two corporations.
As for the other major plan, the Ulta administration has stated that it will open its metropolitan stores in Manhattan, Chicago and San Diego. The expansion has a goal of bringing range of these new target markets with the hopes of expanding sales to new highs. The stores would be more customer-based, unlike its usual department store section that is prevalent in America.
Ulta Beauty Inc. maintained its second bull trend upon its earnings report release. As seen above, the stock surged dramatically after its Q4 release last Thursday. Ulta on Friday opened at 270.93 and ended at its close of 286.36 with a high of 287.22 and a low of 270.38. Consecutively, the stock opened at 286.36 in the recent session and closed at 288.47 and a low of 283.70.
As for the RSI level, Ulta is close to being overbought as it continues to surge near the 70 range. However, in the recent session, the indicator steadied at 66.63. On the other hand, the Coppock Curve rose as well, specifically landing on the 3.41 range, which indicates a buy as the stock is still in the positive area.