Ulta Beauty Inc (NASDAQ:ULTA) reported upbeat earnings for its third quarter, while sales slightly missed views. Ulta Beauty’s comparable sales dropped 8.9% year over year, while the company expects Q4 comparable-store sales to drop 12% to 14%.
During the third quarter of fiscal 2020, the Company recorded long-lived asset impairment and restructuring related costs, primarily related to the suspension of its Canadian expansion, which reduced reported net income by $17.7 million or $0.32 per diluted share. A reconciliation of non-GAAP financial measures to the respective GAAP measures is included in this release.
Net sales decreased 7.8% to $1.6 billion compared to $1.7 billion in the third quarter of fiscal 2019 due to the impact of COVID-19.
Comparable sales (sales for stores open at least 14 months, including stores temporarily closed due to COVID-19, and e-commerce sales) decreased 8.9% compared to an increase of 3.2% in the third quarter of fiscal 2019. In the third quarter of fiscal 2020, transactions declined 15.4% and average ticket increased 7.6%.
Net income was $74.8 million compared to $129.7 million in the third quarter of fiscal 2019. Adjusted net income was $92.5 million compared to $128.6 million in the third quarter of fiscal 2019.
Said CEO Mary Dillon, "Today, we reported financial results that exceeded our expectations as we continue to navigate a year of uncertainties with agility and strength, I am proud of how well our teams are responding and leading throughout this difficult period, and I want to thank all of our Ulta Beauty associates for their continued commitment to serving our guests and taking care of each other during this unprecedented time."
ULTA shares decreased in price $7.13, or 2.5%, to $282.40.
