Ulta Salon Soars After Beauty Chain Boosts Its Annual Forecastby
Ulta Salon, Cosmetics & Fragrance Inc. gained as much as 11 percent after boosting its annual forecast, helped by surging demand for beauty products.
The Bolingbrook, Illinois-based company now expects earnings to grow by a percentage rate in the low-20s, above its previous forecast for 18 percent to 20 percent. Comparable sales will increase by as much as 12 percent, compared with an earlier target of no more than 10 percent.
The company, which runs a chain of beauty shops, upped its guidance after seeing its best same-store sales gains last quarter since going public in 2007. Ulta posted a 15.2 percent gain, beating the 10.7 percent average estimate of Consensus Metrix.
“Several positive factors are coming together to drive the momentum in our business,” Chief Executive Officer Mary Dillon said in the statement. “These include healthy consumer demand in the beauty category; our unique format and offering, which are supporting sustained share gains; and effective collaboration.”
Ulta shares rose as high as $237.53 in New York, the biggest intraday gain since March 11. The stock had been up 16 percent this year before the latest jump.