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Ulta Beauty Stock Jumps on Earnings Beat, Raised Guidance

Ulta reported record sales and earnings for the third quarter and raised its full-year guidance.
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Shares of Ulta Beauty  (ULTA) - Get Ulta Beauty Inc Report jumped on Friday after the beauty-supply retailer reported fiscal-third-quarter results ahead of analyst expectations and boosted guidance. 

The Bolingbrook, Ill., company reported third-quarter earnings of $3.93 a share on revenue of $2 billion. Analysts surveyed by FactSet were expecting the company to report profit of $2.48 a share on revenue of $1.89 billion. 

In the quarter, the company increased market share and expanded the Ultamate Rewards loyalty program to nearly 36 million members," Chief Executive Dave Kimbell said in a statement.

Comparable sales increased nearly 26%, compared with a decrease of nearly 9% a year ago in the middle of the Covid-19 pandemic. The FactSet survey was looking for 25.8% in the latest period.

The company's gross profit margin widened to 39.6% from 37.1% a year earlier.

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For the fiscal year, earnings are expected to range between $16.70 and $17.10 a share, up from a previous view between $14.50 and $14.70. 

The company now expects net sales to be between $8.5 billion and $8.6 billion, up from its previous view between $8.1 billion and $8.3 billion. 

Analysts in the FactSet survey are expecting the company to report full-year earnings of $16.54 a share on revenue of $8.54 billion. 

Comparable sales are expected to increase between 36% and 37% now, compared with a previous view between 30% and 32%. Analysts are calling 36.6%, according to FactSet.

Ulta shares at last check were up 0.6% at $386. They've traded on Friday up as much as 5.3% at $404.