Ulta Beauty impacted by the COVID-19 pandemic
The firm’s financial results continue to be impacted by the COVID-19 pandemic and efforts to contain it
Stocks impacted: Ulta Beauty Inc. (ULTA)
Ulta Beauty announced financial results for the third quarter and the first nine months ended October 31, 2020. The company came out with quarterly earnings of $1.64 per share compared to earnings of $2.25 per share a year ago. Net sales decreased by 7.8% to $1.6 billion compared to $1.7 billion in the third quarter of fiscal 2019 due to the impact of COVID-19. The firm said its financial results continue to be impacted by the COVID-19 pandemic and efforts to contain it. Gross profit decreased 12.5% to $545.5 million compared to $623.4 million in the third quarter of fiscal 2019. The quarterly report also represented an earnings surprise of 8.61%. Ulta posted revenues of $1.55 billion for the quarter ended October 2020. This compares to year-ago revenues of $1.68 billion. Year-on-year quarterly revenue growth declined by 26.3%. The company’s shares have added about 11.5% since the beginning of the year, underperforming the broader market. Following the report, Ulta Beauty shares gained 2.67% overnight.
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