Illinois
-
based
Ulta Salon, Cosmetics & Fragrance Inc.
(
ULTA">ULTA
) recently announced strong holiday sales for the seven-week period
starting from November 13, buoyed by which it also lifted its
outlook for the fourth quarter of 2011.
Net sales for the holiday period soared 24.4% year over year to
$386.0 million driven by a rise in comparable store sales, which
escalated 12.6% from 9.5% reported in the same prior-year period.
Over a two-year holiday period, comparable store sales surged
22.1%.
The beauty retailer benefited from continued demand across all
its categories.
Ulta , the largest beauty retailer that provides a one-stop shop
for prestige, mass and salon products and services in the U.S.,
continues to introduce exciting merchandising and marketing plans
as well as new product offerings across all categories to attract
customers. In fact, the momentum will continue beyond the holidays,
withUlta's skincare event in January.
Ulta Salon which currently operates 449 retail stores across 43
states raised its earnings per share (
EPS
) outlook for the fourth quarter to 67 cents to 68 cents from the
previous range of 62 cents to 64 cents and prior year quarter
earnings of 49 cents, as the holiday sales remained remarkable.
The company also raised its sales expectations for the quarter
to $574 million-$579 million from $552 million-$562 million as well
as comparable store sales growth to 10-11% from 6-8%.
Ulta , which sells cosmetics, fragrance,haircare and other
beauty products, is witnessing strong performance and expects to
close the current year on a high. For 2011, the company projects
EPS in the range of $1.84-$1.85, implying a year-over-year growth
of approximately 59%.
Encouraged by the news, the company's share price rose $3.19 to
close at $69.56 on Thursday.
In the recently concluded third quarter 2011,Ulta Salon reported
earnings of 42 cents per share, which surpassed theZacks Consensus
Estimate of 38 cents. Quarterly earnings almost doubled from the
year-ago level of 23 cents a share and also beat management's
guided range of 36 cents-38 cents. The better-than-expected results
were attributable to double-digit growth in the top line resulting
from robust guest count as well as a rise in average ticket
price.
TheZacks Consensus Estimates for fiscal 2011 and 2012 are pegged
at $1.81 and $2.27, respectively. We expect estimates to go up in
the coming days as the company has raised its outlook.
Ulta , which competes with
Regis Corp.
(
RGS">RGS
) and
Sally Beauty Holdings Inc.
(
SBH">SBH
), expects to report fourth quarter 2011 results on March 5,
2012.
Ulta currently retains aZacks #2 Rank, implying a short-term Buy
rating on the stock. Our long-term recommendation for the stock
remains Outperform.
REGIS CORP/MN (
RGS
): Free Stock Analysis Report
SALLY BEAUTY CO (
SBH
): Free Stock Analysis Report
ULTA SALON COSM (
ULTA
): Free Stock Analysis Report
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