ULTA Earnings Cheat Sheet: Beats Expectations

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) reported net income above Wall Street’s expectations for the second quarter. Ulta Salon Cosmetics & Fragrances, Inc. is a beauty retailer that provides one-stop shopping for mass and salon products and salon services in the United States.

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Ulta Salon, Cosmetics & Fragrance Earnings Cheat Sheet for the Second Quarter

Results: Net income for Ulta Salon, Cosmetics & Fragrance, Inc. rose to $23.9 million (38 cents per share) vs. $13.1 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 83% from the year earlier quarter.

Revenue: Rose 22.6% to $394.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ULTA beat the mean analyst estimate of 32 cents per share. It beat the average revenue estimate of $384.2 million.

Quoting Management: “We are pleased with our strong momentum and better-than-expected second quarter results, which we believe demonstrates Ulta’s increasing authority in beauty.” stated Chuck Rubin, President and Chief Executive Officer of Ulta. “Our impressive performance included a 22.6% increase in net sales, an 11.3% comparable store sales increase and an increase in income per diluted share of 72.7%. During the quarter we drove increased sales productivity and expanded merchandise margins as we integrated new product trends with traffic generating events communicated through our multi-channel marketing strategy. Our new store expansion continued positively and we maintained our double digit percentage growth online.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 19.9%, with the biggest boost coming in the most recent quarter when revenue rose 22.6% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.7 percentage points to 34% from the year earlier quarter. Over that span, margins have grown on average 2.5 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 70.5% and in the fourth quarter of the last fiscal year, the figure rose 48.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Competitors to Watch: Sally Beauty Hldgs., Inc. (NYSE:SBH), Perfumania Holdings, Inc. (NASDAQ:PERF), Avon Products, Inc. (NYSE:AVP), Alberto-Culver Company (NYSE:ACV), Revlon, Inc. (NYSE:REV), Elizabeth Arden, Inc. (NASDAQ:RDEN), Inter Parfums, Inc. (NASDAQ:IPAR), Nu Skin Enterprises, Inc. (NYSE:NUS), The Procter & Gamble Co. (NYSE:PG), Parlux Fragrances, Inc. (NASDAQ:PARL), Physicians Formula Hldgs., Inc. (NASDAQ:FACE), Estee Lauder (NYSE:EL) and Johnson & Johnson (NYSE:JNJ).

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(Source: Xignite Financials)