Ulta Beauty, boosted by Kylie Cosmetics and Morphe, is expected to post earnings beat amid industry weakness

Jean-Marc Giboux

• Ulta Beauty is expected to post strong earnings of $3.06 per share after Thursday's closing bell.
• Shares have surged 33% so far this year.
• Watch Ulta Beauty trade live.

Ulta Beauty, the beauty brand betting on the popularity of Kylie Jenner and Morphe, is expected to report another strong quarter of earnings after Thursday's closing bell.

Here are the key numbers analysts are expecting, according to Bloomberg:

• Adjusted earnings per share: $3.06
• Revenue: $1.75 billion
• Comparable sales: 6% to 7%
• Full-year 2019 EPS outlook: $12.65 to $12.85

Ulta Beauty has pulled ahead of its peers and grown faster than the overall beauty industry in the last few quarters. It gained market share as Sephora reported flat to negative US traffic, according to a note by UBS analysts.

In addition, Ulta's rollout of Kylie Cosmetics, reality star Kylie Jenner's beauty line, and strength in sales of Morphe have set it apart from the competition.

It is likely that Ulta will stick with it's full-year outlook for 2019 of 6% to 7% same-store sales growth and earnings per share between $12.65 and $12.85, UBS wrote.

Key competitors in beauty retail have reported mixed results for Q1. Sephora, JCPenney, and Estee Lauder reported softness in beauty sales, noting slowing traffic and in-store sales as well as declining growth in the industry overall. L'Oreal reported growth, but said that the beginning of the year was tough, particularly in North America. Other companies such as Macy's and Target reported strong growth in beauty.

As Ulta continues to add new brands to its shelves, analysts at UBS believe its stock "still has plenty of growth ahead of itself." They expect earnings growth in the mid-to-high teens.

Ulta stock has surged 33% this year.

Markets Insider