Ulta Beauty Lower After Adjusted Net Beats, Revenue in Line

Ulta Beauty  (ULTA) – Get Report shares were lower after the cosmetics chain reported fiscal-third-quarter net income fell 41% on 7.8% lower revenue.

The Bolingbrook, Ill., retailer’s adjusted profit beat Wall Street estimates while revenue was in line with expectations. 

For the quarter ended Oct. 31 Ulta Beauty earned $1.32 a share compared with $2.25 a share in the year-earlier quarter. Adjusted earnings for the latest period were $1.64 a share.

Asset-impairment and restructuring costs, related mainly to the suspension of its Canadian expansion, reduced reported net income by 32 cents a share, Ulta said.

Revenue fell to $1.55 billion from $1.68 billion.

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of $1.51 a share, or an adjusted $1.50, on revenue of $1.56 billion.

Same-store sales were down 8.9%. The FactSet survey was calling for a drop of 9.6%.

Gross-profit margin for the quarter narrowed 2 percentage points to 35.1%.

At last check Ulta Beauty shares were trading down 5.4% at $274. They closed the regular Thursday trading session up 2.7% at $289.53.

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