Ulta Beauty (NASDAQ:ULTA) today announced financial results for the thirteen week period (“Third Quarter”) and thirty-nine week period (“First Nine Months”) ended October 27, 2012, which compares to the same periods ended October 29, 2011.
For the Third Quarter:
- Net sales increased 22.4% to $505.6 million from $413.1 million in the third quarter of fiscal 2011;
- Comparable store sales (sales for stores open at least 14 months) increased 8.4% compared to an increase of 9.6% in the third quarter of fiscal 2011;
- Gross profit increased 60 basis points to 36.7% from 36.1% in the third quarter of fiscal 2011;
- Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 120 basis points to 23.3% compared to 24.5% in the third quarter of fiscal 2011;
- Preopening expenses increased to $6.3 million, compared to $4.0 million in the third quarter of fiscal 2011. Real estate activity in the third quarter included 49 new stores, one relocation and 11 remodels compared to 28 new stores and one relocation in the third quarter of fiscal 2011;
- Operating income increased 38.6% to $61.3 million, or 12.1% of net sales, compared to $44.2 million, or 10.7% of net sales, in the third quarter of fiscal 2011;
- The tax rate of 37.7% reflects $0.01 per diluted share benefit compared to the third quarter of fiscal 2011 driven primarily by stock option exercises;
- Net income increased 42.5% to $38.2 million compared to $26.8 million in the third quarter of fiscal 2011; and
- Income per diluted share increased 40.5% to $0.59 compared to $0.42 in the third quarter of fiscal 2011.
Chuck Rubin, President and Chief Executive Officer, stated, “Ulta drove better than expected sales growth and operating margin improvement to deliver outstanding performance in the third quarter. We gained market share across all of our major product categories through our disciplined focus on the five components of our multi-year growth strategy: accelerating store growth, introducing new products, services and brands, enhancing our loyalty program, broadening our marketing reach, and increasing our digital focus including Ulta.com. Ulta’s third quarter underscores our team’s strength in execution: we opened 49 stores, increasing Ulta’s store base by 10% during a single quarter, and we completed most of the previously announced prestige brand boutiques. We ended the quarter with Lancôme boutiques in 79 of our stores and Clinique boutiques in 42 stores. Looking ahead to next year, based on the high quality of available real estate and our team’s proven ability to execute, we expect to exceed our long-term plans for 15% to 20% annual store growth and currently plan to open approximately 125 stores in 2013, representing 22% square footage growth. We are confident that Ulta will continue to grow its position as a beauty and trend authority and drive strong sales and profit growth in the quarters and years to come.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV