uploads///makeup _

Ulta Beauty Stock Surges after Fiscal 4Q17 Results

By

Mar. 19 2018, Updated 1:11 p.m. ET

Ulta Beauty stock rose after its results

Ulta Beauty (ULTA) stock rose 7.6% on March 16 in reaction to the company’s fiscal 4Q17[1. fiscal 4Q17 ended February 3, 2018] results. Ulta reported its fiscal 4Q17 results after the markets closed on March 15.

The company’s sales grew 22.6% in fiscal 4Q17 and were in line with analysts’ expectations. However, the company’s earnings lagged analysts’ estimates.

Article continues below advertisement

YTD movement

On March 16, Ulta Beauty (ULTA) stock was down 0.8% on a YTD (year-to-date) basis. In comparison, the S&P 500 Index has risen 2.9% since the start of the year. In 2017, Ulta Beauty stock fell 12.3%, lagging the S&P 500 Index, which rose 19.4%. 

Investor concern over the slowdown in the beauty market, as well as growing competition from department stores and other retailers, adversely impacted Ulta Beauty stock.

More recently, the company’s stock was impacted by negative publicity resulting from allegations that it resold used products to customers. In its fiscal 4Q17 conference call, the company’s CEO, Mary Dillon, denied these allegations. Dillon indicated that the company hasn’t seen any negative impact of such allegations on its brand, store traffic, or financial results.

Store growth plans

Ulta Beauty (ULTA) opened 16 stores in fiscal 4Q17. Overall, Ulta Beauty opened 102 new stores, relocated seven stores, and remodeled 11 locations in fiscal 2017.

At the end of fiscal 2017, Ulta Beauty operated 1,074 stores in 48 states and the District of Columbia. Ulta Beauty plans to open about 100 new stores, and it expects to remodel or relocate 17 stores in fiscal 2018.

In this series, we’ll discuss the company’s sales, earnings, and margin performance in fiscal 4Q17. The next part of this series takes a closer look at Ulta Beauty’s earnings.

Advertisement

More From Market Realist

  • what credit cards can you get without a credit check
    Consumer
    New Program Aims to GEt Credit Cards to People Without Credit Scores
  • Man going into a tax preparation office
    Consumer
    Should I File a Tax Extension Before the Tax Deadline?
  • Thai Airways plane
    Consumer
    Thai Airways (TAWNF) Is Risky, Best to Avoid the Penny Stock
  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.