Lokibaho Shares of Ulta Beauty ( NASDAQ: ULTA ) have recovered initial losses on Q1 results and are now nearly 9% higher in after-hours trading despite a warning from the CEO that the challenges faced during the first quarter of the year will continue through the rest of the year. Wall Street is instead focused on the above-consensus profit and increase in Q1 net sales. The company earned a profit of $6.
47 per share, down from $6.88 per share a year ago but $0.19 better than what the Street expected.
Sales were up 3.8% to $2.7B, missing expectations by $30M.
Comparable sales slowed significantly from a year ago, up by just 1.6% from a 9.3% gain last year, while the company’s gross profit margin narrowed to 39.
2% from 40% year-over-year. “We have a clear plan to accelerate our momentum and continue delivering a best-in-class assortment and engaging experiences for our guests..
.but we have adjusted our annual guidance as we anticipate the dynamics we faced in the first quarter to continue through the balance of the year,” CEO Dave Kimball said. Accordingly, the company now expects sales to be in the range of $11.
5B to $11.6B versus previous guidance of $11.7B to $11.
8B. This is below the consensus estimate of $11.7B.
Earnings are now projected to be between $25.20 and $26 per share versus prior guidance of $26.20 and $27 per share.
This is also below estimates of $26.38. Other metrics have also been lowered including comparable sales, now up 2% to 3% versus up 4% to 5% pr.