Ulta Salon, Cosmetics & Fragrance Inc.
) recently gave an update on its preliminary earnings for its
upcoming first quarter. Income per diluted share for first quarter
fiscal 2012 is expected between 52 cents and 53 cents. This equates
to an increase of approximately 42% year over year. The income per
diluted share for first quarter fiscal 2012 takes into account an
additional pre-opening expense of a penny per share from the new
store program. Earlier, Ulta had guided income per diluted share in
the range of 46 cents to 48 cents.
The company anticipates total net sales of $474 million for
first quarter fiscal 2012, reflecting an increase of 28% year over
year. Total revenue will surpass the guidance range of $452 million
to $460 million. Comparable store sales (comps) for first quarter
fiscal 2012 are expected to rise 10.1%, exceeding the company's
guidance of an increase in a range of 6% to 8%. Higher traffic
remains the strength for the company which sells fragrance,
cosmetics, skincare, haircare, and other styling products. The
company continues to introduce loyalty program, new offerings and
While Ulta continues to exhibit a strong trend in same-store
sales, one of its close competitors
) comps have been going downhill for quite some time. Comps for
Regis' recently concluded third quarter fell 3.4% year over year
and the rate of decline was sharper than the year-ago drop.
Ulta opened 18 new stores in first quarter fiscal 2012 compared
to 5 in the comparable period of the last year. The number of
openings was also more than the guided figure of 13 units.
Ulta has embarked on a solid long-term growth trajectory. Its
business model is aimed at yielding 25% to 30% annual net income
growth with the help of 3% to 5% annual growth in comps.
The Bolingbrook, Illinois-based company currently retains a
Zacks #2 Rank, implying a short-term Buy rating on the stock. Our
long-term recommendation for the stock remains Outperform. Ulta is
slated to release its first quarter earnings on June 5, 2012.
REGIS CORP/MN (RGS): Free Stock Analysis Report
ULTA SALON COSM (ULTA): Free Stock Analysis
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