Ulta Beauty, Inc. ULTA is prone to show year-over-year enhancements in the highest and backside strains, when it studies second-quarter fiscal 2021 numbers on Aug 25. The Zacks Consensus Estimate for revenues is pegged at $1,766 million, suggesting a leap of 43.8% from the prior-year quarter’s reported determine. The firm had witnessed a income improve of 65.2% in the final reported quarter.The Zacks Consensus Estimate for earnings has moved 6.3% north over the previous seven days to $2.36 per share, which signifies a substantial enchancment from the 73 cents reported in the prior-year interval.
Ulta Beauty Inc. Price, Consensus and EPS Surprise
Ulta Beauty Inc. price-consensus-eps-surprise-chart | Ulta Beauty Inc. Quote
Key Factors to Note
Ulta Beauty has been targeted on its six strategic priorities. The firm’s foremost precedence is to strengthen its omnichannel enterprise, and discover the potential of each bodily and digital aspects. Next, the corporate has been endeavor varied instruments to boost expertise of visitors, like providing a digital try-on software and in-store schooling, and reimagining fixtures, amongst others. Thirdly, the corporate concentrates on providing prospects a curated and unique vary of magnificence merchandise by means of innovation. Fourthly, the corporate is concentrated on deepening buyer engagement by boosting rewards and loyalty packages. Fifthly, administration is dedicated to optimizing its value construction. Apart from these, the corporate strives to spice up organizational expertise and strengthen tradition.Talking of e-commerce, it delivered a stable efficiency in the fiscal first quarter, rising in the mid-teens vary on the again of sturdy site visitors and elevated common order. Buy on-line, decide up in-store or BOPIS penetration elevated to roughly 16% of complete e-commerce gross sales in the primary quarter, up from 4% in the identical interval final 12 months. Apart from these, the corporate’s shops and ship-to-home channels drove e-commerce gross sales. The firm’s initiatives to spice up on-line promotions and buyer engagement have additionally been supporting on-line gross sales progress. With shoppers rising enthusiasm towards on-line gross sales, administration is on observe with its increasing capability at success facilities, enlargement of ship from retailer capabilities in addition to curbside pickups. The firm can be benefiting from its cellular app and digital try-on capabilities. These upsides bode effectively for the quarter underneath evaluate.Ulta Beauty’s skincare class has been doing effectively for some time. The firm has been seeing market share features in main magnificence classes, with skincare standing out, because of shoppers’ elevated deal with self-care and wellness. The development continued in the primary quarter of fiscal 2021, whereby skincare noticed sturdy gross sales progress. Consumers have been displaying rising curiosity in new manufacturers like Keys Soulcare, LOLI Beauty, and Urban Skin Pro, in addition to from new merchandise underneath Tula, Pacifica, and Central Bay. Apart from these, the corporate noticed power in the perfume and haircare class, with the latter gaining on the DIY developments, hair coloration, coloration care, and hair styling instruments. Increased deal with skincare and hair amid increased at-home grooming works effectively for these classes.That stated, sluggishness in the make-up class has been a priority. Apart from this, any rise in SG&A prices might need impacted margins.
What the Zacks Model Unveils
Our confirmed mannequin predicts an earnings beat for Ulta Beauty this time round. The mixture of a constructive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), will increase the chances of an earnings beat. You can uncover the perfect shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.Ulta Beauty at present carries a Zacks Rank #2 and has an Earnings ESP of +17.59%.
Other Stocks With Favorable Combinations
Here are another firms you could need to contemplate, as our mannequin reveals that these too have the correct mixture of parts to submit an earnings beat this season.Burlington Stores BURL has an Earnings ESP of +15.26% and sports activities a Zacks Rank #1, at present. You can see the entire checklist of at present’s Zacks #1 Rank shares right here.DICK’S Sporting DKS has an Earnings ESP of +3.59% and carries a Zacks Rank #2, at current.Costco Wholesale COST has an Earnings ESP of +0.44% and at present holds a Zacks Rank #3.
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