Ulta Salon Cosmetics & Fragrance Earnings: Here’s Why the Stock is Rising Now

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.68%.

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Ulta Salon, Cosmetics & Fragrance, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20.37% to $0.65 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Rose 22.91% to $582.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ulta Salon, Cosmetics & Fragrance, Inc. reported adjusted EPS income of $0.65 per share. By that measure, the company beat the mean analyst estimate of $0.62. It beat the average revenue estimate of $576.3 million.

Quoting Management: Dennis Eck, Interim Chief Executive Officer, stated, “We are pleased to announce a strong start to fiscal 2013, with better than expected sales and margin performance. We are on track to add 125 stores this year, and continue to drive outstanding new store productivity. We opened Clinique boutiques in eight more stores, ending the quarter with 51 stores offering Clinique products, with further expansion planned for the rest of the year. We are delighted to announce the addition of 25 Lancôme boutiques planned for the fall of 2013, and expect to end the year with a significant percentage of our stores featuring one of these iconic brand boutiques. We continue to grow our loyalty programs and enhance our ability to communicate with our customers with our CRM platform, and plan to convert all our loyalty program members to one program, ULTAmate Rewards, in early 2014. Ulta.com delivered 70% sales growth during the quarter and we are looking forward to launching our redesigned e-commerce platform this fall. The team is executing our growth strategies very well, and our outlook for continued market share gains is excellent.”

Key Stats (on next page)…

Revenue decreased 23.21% from $758.84 million in the previous quarter. EPS decreased 35% from $1.00 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.72 to a profit $0.68. For the current year, the average estimate has moved down from a profit of $3.39 to a profit of $3.31 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)