Ulta Salon, Cosmetics & Fragrance, Inc. Beats Q2 Views, Boosts Guidance
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) beat second-quarter expectations and raised its outlook on healthy traffic and expanding margins.
In the extended session recently, Ulta changed hands at $111.45 a share, up 14.3 percent.
The Bolingbrook, Illinois, retailer and salon service provider said same-store sales grew nine percent in the recent period, driven by a 5.8 percent increase in transactions and 3.8 percent growth in the company's average sales ticket.
Gross profit grew 22 percent driven by higher sales offset by the expansion of e-commerce fulfillment at a distribution center in Chambersburg, Pennsylvania.
The company forecast third-quarter income of $0.79 to $0.84 a share, on sales of $724 million to $736 million. Wall Street expects $0.83 a share on sales of $717.5 million.
Ulta boosted its 2014 outlook and now sees profit and sales growth "in the 20 percent range." In June the company told investors to expect top and bottom-line growth "in the mid teens range."
The new 2014 outlook implies results higher than the Wall Street 2014 consensus of $3.69 a share, on sales of $3.15 billion.
In the year ended February 1, Ulta posted earnings of $3.15 a share excluding items on sales of $2.67 billion.
Ulta also announced its five-year financial targets which include annual earnings growth in the low 20 percent range.
The target excludes supply chain investments expected to reduce the 2015 and 2016 earnings rate by the mid-single digits.
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