Ulta Beauty Inc (NASDAQ:ULTA) Q3 2020 Earnings Conference Call - Final Transcript

Dec 03, 2020 • 05:00 pm ET


Ulta Beauty Inc (NASDAQ:ULTA) Q3 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Ulta Beauty Third Quarter 2020 Earnings Results Conference Call. [Operator instructions] A brief question-and-answer session will follow the formal presentation. [Operator instructions]

It is now my pleasure to introduce your host, Ms. Kiley Rawlins, Vice President, Investor Relations. Please proceed.

Kiley Rawlins

Thank you, Shimauli. Good afternoon, and thank you for joining us today for our discussion of Ulta Beauty's results for the third quarter of fiscal 2020. Hosting today's call are Mary Dillon, Chief Executive Officer; and Scott Settersten, Chief Financial Officer. Dave Kimbell, President, will join us for the Q&A session.

Before we begin, I'd like to remind you of the company's Safe Harbor language. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those projected in such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of today, December 3, 2020. We have no obligation to update or revise our forward-looking statements, except as required by law, and you should not expect us to do so. In today's comments, we will discuss certain non-GAAP financial measures, including adjusted diluted EPS, which has been presented to reflect our view of our ongoing operations by adjusting for impairment and restructuring related costs. A reconciliation of these measures to the corresponding GAAP measures can be found in our earnings release, which is available in the Investor Relations section of our website at www.ulta.com.

We'll begin this afternoon with prepared remarks from Mary and Scott. Following our comments, we'll open the call up for questions. To allow us to accommodate as many questions as possible during the hour scheduled for this call, we would ask that you please limit your time to one question and one follow-up question. As always, Patrick and I will be available for any follow-up questions after the call.

Now I'll turn the call over to Mary. Mary?

Mary Dillon

Thank you, Kiley and good afternoon, everyone. Today we reported financial results that reflect the strength of the Ulta Beauty model and improving trends in consumer demand. I continue to be very proud of how well our teams are responding and navigating through this difficult period. And I want to thank all of our Ulta Beauty associates for their continued agility, creativity and commitment to serving our guests and taking care of each other during this unprecedented period.

For the third quarter, net sales were $1.6 billion and GAAP diluted EPS was $1.32 per share. Adjusted diluted EPS for the quarter was $1.64 per share. Building on the momentum, we saw at the end of the second quarter, third quarter comp store sales declined 8.9%. The mid-single digit comp declines we experienced in August continued through September with October sales