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Ulta Beauty Tops Estimates, Rises 11% (ULTA)

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Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) is up more than 11 percent in after hours trading after announcing its second quarter results.

The company reported a Q2 EPS of $0.70 versus the Street's estimate of $0.67, beating by $0.03. Earnings per share were up 30 percent from the year-ago period.

Ulta Beauty's revenue hit $601 million (a 25 percent increase year-over-year) versus Wall Street's estimate of $588.37 million.

"The Ulta Beauty team delivered a very strong quarter while moving our growth strategy forward," Mary Dillon, Chief Executive Officer of Ulta Beauty, said in a company release.

"Ulta Beauty added several new brands to its stores; we further expanded the number of Clinique and Lancôme boutiques; we drove rapid growth in our e-commerce business; and we achieved record membership in our loyalty program. I am incredibly excited about the future potential of Ulta Beauty, and I look forward to working with the team to build on the solid foundation they have built."

Ulta Beauty highlighted a number of elements within its earnings report, including:

  • Comparable store sales (sales for stores open at least 14 months) increased 8.4 percent, which was shy of the 9.7 percent increase enjoyed during the year-ago period.
  • Gross profit increased 50 basis points to 35.3 percent from 34.8 percent in the second quarter of fiscal 2012.
  • Net income increased 28.3 percent to $44.9 million compared to $35.0 million in the second quarter of fiscal 2012.
  • Income per diluted share increased 29.6 percent to $0.70 compared to $0.54 in the second quarter of fiscal 2012.
  • An additional 39 Clinique boutiques were added, increasing the total to 90 stores.

Ulta Beauty expects to report a third-quarter EPS between $0.71 and $0.74 versus the Wall Street estimate of $0.76. Sales are expected to fall within the $613 million to $623 million range versus the Street estimate of $618.7 million.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

Posted-In: Mary Dillon Ulta BeautyEarnings News Tech


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