ULTA Raises Q4 View on Solid Holiday Performance, Announces CEO Change

Ulta Beauty, Inc. ULTA, the leading beauty retailer, has raised its fourth-quarter fiscal 2024 guidance, reflecting stronger-than-anticipated performance during the holiday season. The company has also announced a leadership change.In a major leadership transition, Dave Kimbell, who has served as chief executive officer (CEO) for 11 years, will retire and step down from the board. Kecia Steelman, the company’s president and chief operating officer, will succeed Dave Kimbell as president and CEO starting Jan. 6, 2025. Dave Kimbell will stay on as an advisor through June 28, 2025, to ensure a seamless transition.Holiday Strength Boosts ULTA’s Financial OutlookThanks to a successful holiday season, Ulta Beauty now expects comparable sales to grow modestly in the fiscal fourth quarter. Earlier, the metric was anticipated to decline to low single digits for the quarter. Management now expects quarterly operating margin to surpass the high end of its previous expected range of 11.6% to 12.4% of sales.Image Source: Zacks Investment ResearchWhat Else Should You Know About ULTA?Ulta Beauty exceeded expectations in its fiscal third-quarter results, delivering stronger sales and profitability, driven by improved sales trends and strong financial discipline. Effective expense control and favorable shrink trends contributed to the better-than-expected results. The company reported earnings per share of $5.14 in the quarter, up from $5.07 reported in the year-ago period. Quarterly net sales advanced 1.7% to $2,530.1 million. The increase was primarily fueled by contributions from new stores. Comparable sales inched up 0.6% on a 0.5% rise in transactions and a 0.1% increase in average ticket size.Ulta Beauty remains focused on executing key initiatives with precision in a dynamic market environment. The company is confident that its business model and strategic efforts will continue to drive long-term profitable growth and maintain its leadership position, solidifying its role as the go-to destination for beauty enthusiasts for years to come.This Zacks Rank #3 (Hold) company’s stock has gained 18.3% in the past three months compared with the industry’s growth of 1.3%.Some Stocks Looking Red HotUnder Armour UAA is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities in the United States and internationally. It sports a Zacks Rank #1 (Strong Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Under Armour’s fiscal 2025 sales and earnings per share (EPS) indicates declines of 10.6% and 50%, respectively, from the year-ago reported figures. UAA has a trailing four-quarter earnings surprise of 75.1%, on average.Ralph Lauren Corporation RL, which designs, markets and distributes lifestyle products, currently carries a Zacks Rank #2 (Buy). RL has a trailing four-quarter earnings surprise of 9.1%, on average.The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings indicates growth of 3.6% and 13.6%, respectively, from the prior-year reported levels.Hanesbrands Inc. HBI designs, manufactures, sources and sells a range of innerwear apparel and currently carries a Zacks Rank #2. HBI has a trailing four-quarter earnings surprise of 21.6%, on average.The Zacks Consensus Estimate for Hanesbrands’ current financial-year earnings implies substantial growth from the prior-year reported level.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report Hanesbrands Inc. (HBI): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks