Ulta Salon, Cosmetics & Fragrance (ULTA) stock rose more than 7% after the beauty products company said it expects Q3 comparable sales and earnings to be higher than its previous guidance, raised its full-year forecast and expectations for long-term revenue growth.
For Q3, the company said it expects sales to gain between 14% and 15%, up from prior guidance of growth of 11% to 13%. In the same period last year, sales grew 12.8%.
EPS is estimated to be in the range of $1.35 to $1.38, compared to prior guidance of $1.25 to $1.30. The company reported income per diluted share for the third quarter of fiscal 2015 of $1.11. Analysts polled by Capital IQ were looking for $1.30.
For the full year, the company now sees comparable sales growth of approximately 12% to 14%, compared to previous guidance of 11% to 13%. EPS growth is forecast in the mid-twenties percentage range, compared to previous guidance of low to mid-twenties percentage range.
It also confirmed its outlook for the business to deliver earnings per share growth in the low twenties percentage range for fiscal 2017, 2018 and 2019. The company is raising its view of long term comparable sales growth and now expects to drive 7% to 9% comparable sales growth for this period from 2017 to 2019, compared to previous guidance of 5% to 7% long term comparable growth.
Ulta is hosting an investor and analyst day conference in Chicago Thursday.