Ulta Beauty Reports Q4 Earnings; Shares Jump
Ulta Beauty (NASDAQ: ULTA) announced its fourth-quarter 2013 results on March 13, 2014 after the closing bell.
The company had many improvements, including increases in its revenue, which shot up 14.4 percent. Shares of the beauty retailer are up $5.99 per share or 6.69 percent to $95.50.
Mary Dillon, Chief Executive Officer, commented, “Ulta Beauty achieved excellent top line growth in the fourth quarter,” continuing, “We delivered earnings growth consistent with our expectations and made significant progress with our key growth strategies. I am very proud of the team’s accomplishments during 2013, including the completion of the most ambitious store opening program in our company’s history; the addition of 25 significant new brands contributing to 7.9% annual comparable store sales growth; exciting growth in our loyalty program, now 13 million members strong; and rapid growth in Ulta.com, driven by major steps forward in our e-commerce platform and fulfillment capabilities.”
Net sales have increased 14.4 percent to $868.1 million from 758.8 million when compared to fiscal 2012.
Comparable sales increased 9.2 percent for stores that were open at least 14 months and according to e-commerce sales, this compares to an 8.6 percent increase in the fourth quarter of 2012. The company has said that the comparable sales performance benefited by about 200 basis points due to the negative impact of Super Storm Sandy.
E-commerce comparable sales jumped 82.5 percent gross profit also decreased to 33.8 percent from 34.2 percent in the fourth quarter of fiscal 2012.
For the full-year net sales leaped 20.3 percent to $2.6706 billion from 2.2203 billion in fiscal 2012.
Net sales increased 20.3 percent 70.6 million from $2,220.3 million in fiscal 2012. Excluding the sales for the 53rd week in fiscal 2012 of approximately $55 million, sales increased 23.3%.
Mary Dillion continued, “From a position of strength, we are making important investments to support the long-term growth and success of Ulta Beauty,” “We are building the right supply chain and systems to support 1,200 stores and a much larger e-commerce business, we are developing our customer loyalty programs and CRM capabilities, we are investing in brand awareness to drive new customer acquisition, and we are working to deliver a differentiated customer experience. All of these initiatives are designed to drive sustainable growth and create shareholder value.”
The company is planning on achieving comparable sales growth of about four to six percent.
It also plans on remodeling 12 locations and deliver earnings per share growth in the mid-teens percentage range, and plans on spending $ 0.10 per share to fund brand awareness.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.