Florida, Port St. Lucie, The Landing at Tradition, outdoor mall, Ulta, cosmetic store.

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Ulta Beauty stock rose more than 5% in expanded trading on Wednesday after the company reported that fiscal second quarter sales rose more than 60% as shoppers rushed in for their makeup bags to fill up.

Ulta raised its full year outlook after consumer demand for beauty products returned faster than expected.

“This achievement reflects the recovery of the beauty category, the investments and decisions we made over the past year to adapt to market distortions and strengthen our leadership position, and the continued efforts of our people to deliver great experiences for our guests . ” said CEO Dave Kimbell.

In early Wednesday trading, the stock hit a 52-week high of $ 390.68.

In the second quarter ended July 31, the company performed compared to the expectations of the analysts surveyed by Refinitiv:

  • Earnings per share: $ 4.56 vs. $ 2.59 expected
  • revenue: $ 1.97 billion versus an expected $ 1.76 billion

Net income rose to $ 250.9 billion, or $ 4.56 per share, from $ 8.1 billion, or 14 cents per share, last year.

Revenue rose from $ 1.2 billion a year ago to $ 1.97 billion.

Analysts polled by Refinitiv had expected the company to make $ 2.59 per share on sales of $ 1.76 billion.

The increase in revenue was driven by a 52.5% increase in transactions and a 26.7% increase in average customer spend.

The company’s revenue in the same store increased 56.3% for the quarter. Last year, sales in stores that were open for at least 14 months fell 26.7% due to the pandemic. Revenue in the same store for the quarter was 13.1% above 2019 levels.

“The resurgence of in-store traffic has fueled the strong comp performance,” said Ulta CFO Scott Settersten on the company’s conference call.

While retail traffic during the quarter was higher than in the first quarter, it still lagged behind the 2019 level. Ulta opened seven new stores and closed one store during the quarter and plans to open 44 new stores this year. The company had previously expected to open 40 new branches this year.

According to Kimbell, active users in its loyalty program rose to 34.6 million.

As expected, ecommerce sales declined year over year as coronavirus restrictions were relaxed and vaccinated customers were more comfortable in-person shopping. On a two-year basis, online sales more than doubled in the reporting period.

With retailers continuing to experience supply chain delays, Ulta is confident that inventory levels will be higher than expected sales growth by the end of the third quarter.

Executives said most of its products are made in the US and Europe, but delays from China are limited.

“Like others, we are tackling global supply chain constraints, port congestion and other headwinds, including the Covid-19 resurgence,” said Settersten. “Our teams work diligently to mitigate risk and, when appropriate, we proactively work with our brands to prioritize receipts to ensure we have adequate inventory for the holiday season.”

Ulta estimates sales this year at $ 8.1 billion to $ 8.3 billion. Previously, the company had expected sales of $ 7.7 billion to $ 7.8 billion. Sales in the same stores will increase by 30 to 32%, it said, above previous forecasts of 23 to 25%.

Earnings for the year are projected to be $ 14.50 to $ 14.70 per share, compared to an earlier range of $ 11.50 to $ 11.95 per share.

Ulta stock is up nearly 36% year-to-date and has a market cap of nearly $ 21.4 billion.

Read the full Ulta Beauty publication here.