Connect with us

News

Ulta Beauty Looking Good Post-Q1

Published

on

The 2018 first quarter report of Ulta has pushed it to climb the charts even more. In addition, the company and its strategic efforts, impressive marketing approach, and store-growth initiatives have driven and increased its very impeccable results.

With all these being said, Ulta shares are up by 2.5% since May 31, just a few days after it has released its quarterly results. It has outperformed the industry’s 10.2 upsides with its 21.9% advancement and continues to be one of the most promising stocks as it ranks #3 in Zacks.

In addition to all these, most of the analysts are growing bullish on Ulta due to its obvious solid uptrend as far as earnings estimates are concerned.  Zacks Consensus Estimate of $10.92 for the year 2018 and $12.76 for 2019 increased 16 cents and 2 cents in the past 30 days. Also, the company’s long-term earnings growth rate of 18.6% and VGM Score of A is something that deserves an applaud.

Solid Results in Quarter 1 and a Surprising Trend

The earnings and revenue history of Ulta Beauty is full of surprises.  During the first quarter of 2018, it was able to revert the three-year-long positive trend of earnings after missing out in its preceding quarter.  One of the good news that this stock has brought to us it was able to beat 16 out of 18 quarters in the past few years. Certainly, there is an improvement annually and this fueled by the improved market share gains, the impact of the loyalty programs and the solid e-commerce business as well as its growth initiatives.

The company also has a very impressive strategy in balancing online engagement and physical store performances. With its e-commerce sales, it was able to turn a total of 48% growth during the first quarter of 2018.  This upside is also driven by 38% traffic growth and 52% traffic surge in mobiles. In fact, the company is targeting 40% growth for the entire fiscal year of 2018.

Company Initiatives

As what we have already established earlier, the loyalty program of the company has significantly contributed to the positive results of the company. It truly has boosted the profitability and the top line of the entire company.  The loyalty program offered by Ulta Beauty is one of the leading drivers for its best results for the quarter 1 of this year.

Aside from this loyalty program, the company also has taken initiatives in increasing the value they offer to their members through their Ultimate Rewards system. This has brought them a 17% increase in membership and patronage. Also, the sales per member, retention rates, and the shopping frequency of consumers have turned the first quarter of 2018 a solid one.

Aside from increasing the value of services they offer to their customers, Ulta Beauty also worked hard for its expansion plans to be realized. This year, it is already on its way in opening its 100th store. This is for them to reach out to more patrons and consumers all over the region, if not the whole world.
Being the one-stop shop for beauty and salon products, Ulta Beauty has managed to create a niche market by the solid mix of beauty products. Aside from the variety of products they offer, they make sure that patrons can get quality products in a discounted amount plus the benefit of other services which can all be found in one roof. There is no need to look for other places because everything that you need is already here.

A Wrap-up

Although the high SG&A and pre-opening expenses have made the company wrestle with soft margins. It is still possible that Ulta Beauty is capable of offsetting these margin declines with its impressive marketing strategies.

separador.png

This article was written by @valerie15 and edited by @flashfiction. This article can be found on PROFITRIBES.

Do you want to make REAL money writing?

  • Writers earn 50% of the SBD payout of all cryptocurrency/finance posts they submit. Send all submissions to editor@storyhackers.club.

Join the Discord Channel: https://discord.gg/56Pnrwc

Omniloquent was brought to you by @yallapapi.

Recommended reading:

#1 Blockchain Simplified: https://steemit.com/crypto/@omniloquent/why-is-the-blockchain-important

#2 Real Estate Investing: https://steemit.com/busy/@omniloquent/investinginrealestate-6ti7vr2lrq

#3 Economies of Scale: https://steemit.com/business/@omniloquent/economiesofscale-ldbp306oun

Investing / Trading

Whats up with the buffet buyback?

Published

on

By

First what’s a stock buyback?

A stock buyback is simply when a public traded company buys shares back from the open market.

It is common for businesses to buy back shares for several reasons

  • Help boost the value of their shares. This works because when there is less shares available it influences the price of that asset.
  • Boost earnings before and upcoming report.
  • Cause speculation on the value of their asset

In the past year it has been very common for companies to buy back shares. this is often helpful in rewarding investors.

Buffet knows something you dont!

Berkshire Hathaway is a company owned by Warren Buffett who is know for buying stake in companies he believes will grow in value with time. This time they arent buying shares of other companies but are investing in itself with approximately $1 billion worth of stock buybacks.

You may be wondering why Berkshire Hathaway is buying back shares? Well, after a decade long bull market in the USA coupled with increasing stock prices(potentially in bubble teritory now), Buffett thinks a buyback make sense because there is little percieved value anywhere else. The strategy must be working berkshire reported profits increased 351% to $18.5 billion this past year. Buffets style of value investing is known as one of the best in the industry and making Buffett one of the richest men in the world with a worth of about $90 billion.

Be like Warren buffet and start making valuebuys over on the Stash App, here is $5 for free to get started

Continue Reading

Investing / Trading

Euro to replace the dollar?

Published

on

By

there is a probability

The euro is currently 1/3 of global transaction volume, and some think its potentially possible that the Euro coud be placed to surpass the dollar in importance. The euro like the dollar is a fiat currency that is used for trade between european nations and their allies when convenient. With sanctions tarifs and general economic bullying becoming the norm for america and its dollar, some nations are choosing to look for ways to escape dollar hegemony.

It’s not likely to really happen

The euro is a strong currency but it has little chance of becoming the worlds reserve currency. It is more likely that folks will choose to move away from any financial institution that can basically starve your population with financial and trade sanctions. In my opinion cryptocurrency will find it’s way into the worlds economy so that users can escape the easily restricted fiat currencies. Value based in valuless debt notes is on its way out and this will probably be the segway into the next financial crises.

Continue Reading

Business

De-dollarization is on its way!

Published

on

By

The Dollar is a weapon of mass destruction

In recent years the news has been filled with stories on sanctions and othr economic turmoils that seem to all stem from the power of the United States of America. Before the 1960’s america had little control over the financial liquidity of the economies abrod but today with the swipe of a pen america can effectivley ban you from its Dollar club paralyzing your economy. in recent years that has begin to slowly change, nations like russia and china are becoming tired of the United States throwing its weight around. Even allies like india and Eu nations are looking into ways to escape from the petro dollar regime which has ruled for so long. A change is coming and it looks like America’s behavior is the catalyst.

Big stories developing

Turkey has dumped several billion dollars in Us debt securities and scooped up gold in an attempt to work closer with its allies Russia and China. The Dollar is fueling huge wars and it is coaxing nations into the growing de dollarization trend. Alliances are developing that may soon shift economic paradigms away from Washington and into thw world. If one is being optimistic they could even say that a new era is about to begin.

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.