Shares of Ulta Salon, Cosmetics & Fragrance (ULTA) rose 6.06% to $273 in premarket trading on Friday after the beauty retailer reported better-than-anticipated results for the 2016 third quarter and issued upbeat guidance for the holiday quarter.
After yesterday's closing bell, the Bolingbrook, Ill.-based company projected fourth-quarter earnings per diluted share between $2.08 and $2.13 on revenue of $1.52 billion to $1.54 billion. Analysts were modeling earnings of $2.06 per share on revenue of $1.51 billion.
Comparable-store sales are now forecast to increase 12% to 14% in the current period vs. the FactSet consensus estimate for 13% growth.
The company also boosted its 2016 outlook. Full-year earnings per share are expected to rise in the high 20th percentile range compared to previous guidance of mid-20th percentile growth. Total sales are projected to increase in the low-20th percentile range vs. prior expectations of a high-teens percentage.
Comparable-store sales are expected to increase about 13% to 15% in 2016 vs. its prior outlook in August for growth of 11% to 13%.
For the third quarter, Ulta posted earnings of $1.40 per diluted share on revenue of $1.13 billion. Analysts surveyed by FactSet were expecting earnings of $1.37 per share on revenue of $1.11 billion.
"Our associates continue to execute against our growth strategies, resulting in success across several areas: new brand acquisition, increased Ulta Beauty brand awareness, rapid growth in our loyalty program, improving supply chain performance, and robust e-commerce growth," CEO Mary Dillon said in a statement.
