First Prize Goes to Ulta (NASDAQ:ULTA)
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at beauty and cosmetics retailer stocks, starting with Ulta (NASDAQ:ULTA).
Beauty and cosmetics retailers understand that beauty is in the eye of the beholder, but a little lipstick, nail polish, and glowing skin also help the cause. These stores—which mostly cater to consumers but can also garner the attention of salon pros—aim to be a one-stop personal care and beauty products shop with many brands across many categories. E-commerce is changing how consumers buy cosmetics, so these retailers are constantly evolving to meet the customer where and how they want to shop.
The 4 beauty and cosmetics retailer stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: Ulta (NASDAQ:ULTA)
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Ulta reported revenues of $3.04 billion, up 8.9% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and full-year EPS guidance meeting analysts’ expectations.
Ulta achieved the biggest analyst estimate beat among its peers. Unsurprisingly, the stock is up 1.3% since reporting and currently trades at $547.30.
We think Ulta is a good business, but is it a buy today? Read our full report here, it’s free.
Warby Parker (NYSE:WRBY)
Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Warby Parker reported revenues of $235.5 million, up 9.8% year on year, falling short of analysts’ expectations by 1%. However, the business still had a satisfactory quarter with a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.
Warby Parker delivered the fastest revenue growth in the group. The company reported 2.71 million active customers, up 4.2% year on year. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.7% since reporting. It currently trades at $26.14.
link
