 wrapped up fiscal 2023 on a high note, posting better-than-expected fourth-quarter results and unveiling its first international expansion plans.){kind=link}
Ulta Beauty, Inc. (NASDAQ: ULTA) wrapped up fiscal 2023 on a high note, posting better-than-expected fourth-quarter results and unveiling its first international expansion plans.
The specialty beauty retailer reported net sales of $3.6 billion, marking a 10.2% increase from the previous year’s $3.2 billion. Earnings per diluted share surged to $8.08, exceeding analyst projections of $7.53.
Q4 2023 Performance Highlights
- Comparable Sales Growth: Increased 2.5%, driven by a 4.5% rise in transactions, though partially offset by a 1.9% decline in the average ticket size.
- Operating Income: Rose 15.5% year-over-year to $517.1 million.
- Store Expansion: Opened 13 new stores, bringing the total to 1,385 locations.
- Share Repurchases: Bought back $159.5 million in shares and announced a new $2 billion repurchase program.
CEO’s Perspective
CEO Dave Kimbell credited the company’s performance to successful holiday campaigns and a compelling product mix. “We closed out 2023 with strong momentum, achieving record brand awareness and continued membership growth,” Kimbell stated.
Fiscal 2024 Outlook
Ulta projects full-year revenue between $11.7 billion and $11.8 billion, with earnings per share estimated between $26.20 and $27.00, signaling confidence despite macroeconomic uncertainties.
International Expansion: Ulta Enters Mexico
For the first time, Ulta is venturing beyond U.S. borders, announcing a joint venture with Axo to launch operations in Mexico in 2025. This marks a pivotal step in the company’s growth strategy, leveraging its unique value proposition to tap into new markets.
Despite its strong performance, Ulta’s stock dipped over 5% in after-hours trading to $535.75, reflecting investor caution amid broader market conditions and evolving consumer trends.
With a resilient business model and a clear vision for growth, Ulta Beauty is poised for continued expansion and innovation in the evolving beauty retail landscape.
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