Ulta Beauty Stock Drops Despite Beating Expectations, Issuing Strong Guidance - Ulta Beauty (NASDAQ:ULTA)

Ulta Beauty Inc ULTA shares are trading lower in Thursday’s after-hours session. The company reported better-than-expected financial results and issued strong guidance after the bell, but shares are facing selling pressure.

What Happened: Ulta reported fourth-quarter revenue of $3.23 billion, up from $2.7 billion from the prior year’s quarter. The company’s top-line results came in above consensus estimates of $3.02 billion, according to data from Benzinga Pro.

Comparables sales increased 15.6% year-over-year driven by a 13.6% increase in transactions. Average ticket prices also climbed 1.8%. 

Ulta reported fourth-quarter earnings of $6.68 per share, beating estimates of $5.65 per share.

Merchandise inventories totaled $1.6 billion at quarter’s end compared to $1.5 billion at the end of the fourth quarter of 2021. The company ended the quarter with $737.9 million in cash and equivalents. Ulta also said it built 12 new stores in the quarter, bringing total locations up to 1,355.

“As we move into fiscal 2023, we remain optimistic about the strength and resiliency of the beauty category, and I am excited about the opportunities ahead to continue to expand our leadership position, capture market share gains, and drive long term value for all our stakeholders,” said Dave Kimbell, CEO of Ulta Beauty.

Ulta expects full-year 2023 revenue to be between $10.95 billion and $11.05 billion versus estimates of $10 billion. The company anticipates full-year earnings of $24.70 per share to $25.40 per share versus estimates of $22.93 per share.

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ULTA Price Action: Ulta shares were down 1.91% in after-hours trading at $510 at the time of publication, per Benzinga Pro.

Photo: Iguanat from Pixabay.

Image and article originally from www.benzinga.com. Read the original article here.