Beauty products retailer, Ulta Salon, Cosmetics & Fragrance Inc. (NASDAQ: ULTA) shares gained almost 7% on Friday after the company reported better-than-expected fiscal second-quarter results, thanks to strong growth in same-store-sales.
For the quarter which ended on July 28, the Company reported that net sales stood at $481.7 million compared to $394.6 million, in the year earlier quarter—a jump of 22.1%.
Net income soared 46.4% to $35.0 million from $23.9 million, in the corresponding period of last year.
Earnings per share rose 42.1% to $0.54 compared to $0.38 in the year earlier period.
Same-store-sales, a perfect gauge on retailer’s performance-increased 9.3% in the quarter compared to 11.3% growth in the same period of last year.
Operating income also rose 44.9% to $57.5 million, or 11.9% of net sales, compared to $39.7 million, or 10.1% of net sales, in the corresponding period of last year.
Commenting over fiscal second quarter results, ULTA’s President and Chief Executive, Chuck Rubin said to analysts in a conference call, “We are very pleased to report excellent results for the second quarter. The team drove strong sales and profit growth by continuing to focus on the five components of our multi-year growth strategy: accelerating store growth, introducing new products, services and brands, enhancing our loyalty program, broadening our marketing reach and increasing our digital focus with Ulta.com.”
Rubin also announced that the Company will be adding 35 new Clinique boutiques after meeting with resounding success with its currently operating 13 Clinique stores.
Buoyed by strong results, the company now expects net sales to fall in the range of $494 million to $503 million based on assumption that same-store-sales will rise by 6% to 8% in the fiscal third quarter. Earnings per share are expected to come in the range of 54 to 56 cents.
For the fiscal 2012, the company is expecting earnings per share to come in the range of $2.58-$2.60 after including expenses of $0.07 to $0.08 a share associated to accelerated new store program. Same –store-sales are expected to increase by 8%–much higher than company’s long term target of 3%-5% growth in comparable store sales.
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