As brick-and-mortar retailers get crushed this quarter, two consumer products companies pleased the Street with earnings that blew past estimates.
Ulta Beauty Inc.
Shares of Bolingbrook, Ill.-based cosmetics, fragrance and personal products maker Ulta Beauty (ULTA) are trading up about 3.8% in after-hours activity to $304.11 a share after gaining 4.5% on Thursday. Investors have rallied behind better-than-expected first quarter results propelling shares to new highs.
Adjusted earnings of $1.91 per share on revenue of $1.31 billion beat the Street’s expectations for non-GAAP EPS of $1.79 per share on revenue of $1.28 billion. Ecommerce sales boomed 70.9% while comparable store sales increased 14.3%. Retail comps gained 10.9%, while salon comparable sales were up 9.9%. Management lifted fiscal 2017 guidance, foreseeing comps growth of 10% at the midpoint and online sales of about 50% as the retailer opens up 100 new stores.
“The Ulta Beauty team kicked off 2017 with excellent performance in the first quarter,” said Chief Executive Officer (CEO) Mary Dillon. “Strong execution of our growth strategies delivered above plan sales and earnings growth. Our results reflect continued newness and innovation in merchandising, successful marketing programs, steady progress in our salon business and exceptional growth in e-commerce.” (See also: Cosmetics Industry Disruptors Target Millennials.)
American clothing company PVH Corp. (PVH) has seen its shares spike on better-than-expected Q1 earnings reported before the opening bell Thursday. The New York City-based owner of brands such as Calvin Klein and Tommy Hilfiger posted adjusted earnings up 10% year over year (YOY) to $1.65 per share, surpassing the consensus estimate for $1.61 and guidance of $1.59 at the midpoint. Q1 revenues grew 3.7% to $1.99 billion, also exceeding the Street’s expectations for $1.96 billion. CEO Manny Chirico highlighted strong sales in China and Europe as growth drivers.
Closing up 4.8% on Thursday at $106.98 a share, PVH has gained more than 19.3% in the last 12 months. The firm’s positive Q1 surprise marks three consecutive sales beats despite a volatile macroeconomic environment and a highly promotional North American retail space. In the recent period, analysts have applauded the company’s strong brand recognition and international expansion. Management hiked current-quarter guidance and FY17 forecasts above the consensus, expecting EPS growth over 10% in the first half of 2017. (See also: Analyst: PVH ‘Not Just Another Apparel Maker’.)