Shares of beauty cosmetic retailer Ulta skyrocketed to a new 52-week high of $268.88 after announcing that Kylie Cosmetics would be making its way to stores by the holiday season.
The makeup retailer said that Kylie Jenner’s make up line would be in stores, exclusively, by the holidays.
Jenner took to Twitter and also announced the news with this tweet: “I’m so excited to let you guys know that @KylieCosmetics will be coming to all @ultabeauty stores around the country this holiday!… More to come…”
It was a big rebound for Ulta after it sank over 6% in after-hours trading on August 30th when it announced mixed second quarter financial results. Wall Street was optimistic that the launch of Kylie Cosmetics at the store ahead of the busiest shopping season could draw in more customers.
“Kylie Jenner is a highly influential force in the beauty industry,” said Ulta CEO Mary Dillon on the earnings call. “This brand addition is yet another example of successful digitally native brands valuing a brick-and-mortar partnership with Ulta Beauty to extend their reach with consumers.”
Ulta said more details on the launch would be shared at a later date.
Cowen and Co. analyst Oliver Chen remarked, “ULTA continues to differentiate itself via these exclusive partnerships, and has uniquely positioned itself by carrying both the smaller, high-growth direct-to-consumer (DTC) brands, as well as the established legacy favorites.”
Ulta’s launch of Kylie Cosmetics “underscores the limitations of a pure digital footprint and the importance of traditional brick-and-mortar retail,” said Evercore ISI analyst Omar Saad.
“Ulta is well positioned to help cultivate and capture this percolating wave of newness and innovation, a dynamic that should support continued comp strength for at least a while.”
For the second quarter, Ulta reported net income of $148.3 million, or $2.46 a share. In the year ago quarter this figure was $114.2 million, or $1.83 a share. Analysts were waiting for $2.41 a share. Revenue at $1.49 billion was inline with what analysts had expected.
Sales at Ulta stores open for at least 12 months saw a growth of 6.5 percent but was short of the 6.9 percent growth expected by analysts.
Investors also weren’t thrilled with the company’s guidance for the third quarter which initially sent shares falling. Ulta has forecast earnings per share in a range of $2.11 to $2.16 for the third quarter. Analysts were expecting $2.31 a share. Same-store sales are predicted by Ulta to climb between 7 and 8 percent, in line with analysts’ expectations. For the full year, Ulta is expecting same-store sales growth of as much as 8 percent.