Ulta Salon (ULTA) up +8 Percent on 1Q Earnings Beat, Sales Growth
Shares of Ulta Salon, Cosmetics and Fragrance, Inc. (ULTA) were trading up +16.81 or +7.87 percent in Friday’s premarket after the company announced first quarter earnings late yesterday. In addition, the company reported better than expected sales growth and guidance. Ulta Salon stock closed at $213.69, up +2.21 or +1.05 percent in Thursday’s regular trading session.
Bolingbrook, Illinois based Ulta Salon, Cosmetics & Fragrance, Inc. was founded in 1990 by a former president of Osco Drug Inc., Richard E.
For the company’s first quarter of 2016, Ulta reported income per diluted share of $1.45 versus $1.04 in the first quarter of 2015, an increase of +39.4 percent. Net sales for the quarter came to $1.073 billion compared to $868.1 million in the same period one year ago. The analyst consensus was for the company to report earnings of $1.29 per share on revenue of $1.03 billion.
Ulta reported comparable store sales for stores open at least 14 months and Internet sales increased +15.2 percent versus an increase of +11.4 percent in the first quarter of 2015. The same store sales increase was driven by a +11.0 percent growth in traffic and an increase of +4.2 percent on the average ticket. Retail comparable sales grew +13.9 percent including salon comparable sales, which increased +7.7 percent. E-commerce sales of $61.0 million showed an increase of +38.8 percent from the previous year’s $44.0 million.
Mary Dillon, Chief Executive Officer for Ulta Salon said in the company’s press release that, “We are off to a phenomenal start to the year, delivering excellent top and bottom line growth in the first quarter. Several positive factors are coming together to drive the momentum in our business, exemplified by the best comparable sales growth in our history as a public company. These include healthy consumer demand in the beauty category, our unique format and offering which are supporting sustained share gains, and effective collaboration across the enterprise to ensure strong execution of our growth strategies.”
The company issued its guidance for the second quarter of earnings per share of $1.32 to $1.37 on $1.041 billion to $1.058 billion in revenue. Ulta expects same store sales growth of +10 percent to +12 percent compared to its previous guidance of +8 percent to +10 percent.
Ulta increased its guidance for the full 2016 year because of the year’s strong start, the company is forecasting earnings per share growth of +20 percent on high teens percentage rate sales growth, which compares to a previous outlook for +18 percent to +20 percent sales growth and mid to high teens percentage in revenue growth. Analysts were expecting earnings per share of $1.40 on revenue of $1.033 billion for the second quarter and+20 percent earnings per share increase on +17 percent revenue growth.
Other News About ULTA
Ulta Beauty Opening Satellite Office In Chicago
The company’s new satellite office is scheduled to open by late summer of this year.
dpHUE Launches in Ulta Beauty Nationwide
The at home hair color brand launched at 850 Ulta stores and on Ulta.com on May 8th.
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