Ulta Beauty falls on reaffirming annual forecasts, issues long-term targets
Updates
** Cosmetics retailer Ulta Beauty's ULTA.O shares fall as much as 5% to near two-month low of $352.40
** Company reaffirms 2024 net sales forecast of $11 bln to $11.2 bln and profit per share expectation between $22.60 and $23.50
** Ulta's board approves new share repurchase authorization of $3 bln during investor day on Wednesday
** Operating margin was much stronger than expected in 2022 and 2023, fueled by exceptionally strong comparable store performance - CEO Dave Kimbell
** Operating margin expected to fall modestly below that range in 2024 "as this year has been more challenging than planned" - Kimbell
** Company expects 2024 operating margin between 12.7% and 13.0% vs 15% in 2023 and 16.1% in 2022
** Ulta aims to open 1,800+ stores over the long-term and drive loyalty program growth to 50 mln members by 2028
** Expects long-term financial targets for 2026 and beyond to be of 4% to 6% net sales growth and low double‐digit percentage range rise for profit
** Ulta's long-term plan sets lower bar for company going forward with estimates over next several years likely to come down - brokerage D.A. Davidson
** As of Tuesday's close, stock down ~25% YTD
Reporting by Ananya Mariam Rajesh in Bengaluru
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