Shares of Ulta Beauty Inc (NASDAQ: ULTA) ended up reduced Friday immediately after the beauty retailer declared Thursday afternoon its fourth-quarter outcomes and a CEO transition.
The Ulta Beauty Analysts: Credit score Suisse analyst Michael Binetti maintains an Outperform score on Ulta Beauty’s stock with an unchanged $350 price tag focus on.
Raymond James analyst Joseph Altobello maintains a Sector Conduct rating on Ulta’s inventory with no rate goal.
Credit history Suisse — COVID-19 Restoration Enjoy: Ulta’s fourth-quarter EPS of $3.41 was “well previously mentioned” Avenue estimates of $2.34, as similar-retail outlet income of negative 4.8% also defeat estimates of down 11%, Binetti wrote in a take note.
Gross margins also beat expectations at 35.1% versus 33.1% pushed by merchandise margin enhancements.
Shares of Ulta are impacted by a advice miss that lowers around-expression visibility together with the announcement that Ulta President Davie Kimbell will realize success Mary Dillon as CEO, the analyst wrote.
However, there are loads of factors to imagine Ulta’s best and bottom strains will outperform as COVID-19 pandemic lockdowns and restrictions relieve in the coming months.
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Raymond Jones — Powerful Quarter Overshadowed By Headwinds: Ulta “conveniently” conquer anticipations in the fourth quarter and the natural beauty retailer even attained current market share in most categories, Altobello wrote in a take note. But management’s fiscal 2021 EPS outlook of $8.85 to $9.30 was “effectively beneath” the Street’s estimate of $10.52.
In addition, Ulta’s product sales outlook of $7.2 billion to $7.3 billion signifies a decrease from 2019 levels, in spite of the addition of 50 new outlets in excess of the past yr.
The income guidance indicates a year-more than-12 months decrease in on the web profits and the lower revenue base will outcome in functioning margins dipping from 12.2% in 2019 to an believed 9%.
The CEO transition announcement was also a surprise offered Dillon’s “incredibly profitable” run as CEO for eight a long time, the analyst wrote. She oversaw Ulta expanding its valuation three-fold and doubled its retail store fleet.
“That claimed, Mr. Kimbell has designed a reputation as a potent operator and is properly-known to the Road, and with Ms. Dillon being on the Board we suspect the transition will be reasonably easy,” Altobello wrote.
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ULTA Price tag Action: Shares of Ulta Magnificence ended up trading decreased by 8% Friday afternoon at $319.84.
(Photo: Mike Kalasnik by means of Flickr)
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|Mar 2021||Credit rating Suisse||Maintains||Outperform|
|Mar 2021||Deutsche Bank||Maintains||Obtain|
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