Ulta Beauty Inc. ULTA,
shares rose more than 16% in the extended session Thursday after the retailer reported earnings in the second quarter above Wall Street expectations and said its online sales had tripled. Ulta earned $ 8.1 million in the quarter, up 14 cents a share, compared to $ 161 million, or $ 2.76 a share, in the same period last year. Adjusted for one-time items, the company earned $ 41.5 million, or 73 cents a share, compared to $ 2.72 a share a year ago. Sales fell 26% to $ 1.23 billion from $ 1.7 billion a year ago. Analysts polled by FactSet had expected an adjusted profit of 6 cents a share on sales of $ 1.25 billion. Ulta said sales from the same store fell nearly 27%, but e-commerce sales increased more than 200%. “While the pandemic is affecting our business, we are encouraged by improving trends,” said Chief Executive Mary Dillon in a statement. Sales programs “have continued to improve, with similar sales in the mid-single-digit range for the first three weeks of August.” Despite the recent improvement in sales trends, “it will take time to fully return to pre-COVID levels … we expect sales to continue to be challenged for the rest of the year,” Dillon said. Ulta did not provide guidance, but said it expects costs between $ 35 million and $ 40 million related to PPE and COVID-19 in the second half of fiscal 2020, and capital expenditures between $ 180 million and $ 200 million, compared to an earlier expectation of between $ 200 million and $ 210 million. Shares of Ulta ended the regular trading day with 1.5%.
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