Ulta Beauty (NASDAQ:ULTA) is a top beauty retailer in the United States. It boasts many top brands under its umbrella. Shares have dropped 21% over the past three months as of mid-afternoon trading on April 20.
However, the stock has spiked 39% in the past week. Fortunately, it is not too late for investors to jump in on this promising equity.
The company released its fourth-quarter and full-year 2019 results on March 12. In Q4 2019, net sales increased 8.5% to $2.30 billion and net income rose 3.7% to $222 million. For the full-year, net sales posted 10.1% growth to $7.39 billion. Its net income climbed 7.2% to $705 million. Ulta Beauty ended fiscal 2019 with a 6.9% increase in total store square footage compared to the prior year.
As for fiscal 2020, Ulta Beauty is planning to open at least 75 net new stores. However, investors should expect this number to be curbed due to the negative impacts of the COVID-19 pandemic. The rest of its guidance included a projected 7-8% increase in sales and comparable sales growth between 3% and 4%.
Shares of Ulta Beauty were down 3.23% at the time of this writing. The stock last had a favourable price-to-earnings ratio of 17 and a high price-to-book value of 6.3.
Moreover, Ulta boasts an immaculate balance sheet. It will face challenges due to the COVID-19 pandemic, but going forward I’m still bullish on Ulta’s promising business
