Ulta Salon Lifts Year's Outlook Again

Ulta Salon Cosmetics & Fragrance Inc. again lifted its outlook for the year as it posted its eighth consecutive quarter of double-digit top-line growth amid robust same-store sales.

Shares in the Bolingbrook, Ill., chain, up 55% over the past year through Thursday's close, added another 4.9% after hours to $270.

Ulta stores, mostly found in strip malls, have bucked larger trends in the retail sector, hurt by shoppers' increasing tendency to opt to buy on Amazon.com and stay out of traditional malls. The company, which offers a range of products across price points, from $200 hair tools and prestige brands like Lancô me to bargain brands such as Maybelline, has been expanding its store base as others are shutting stores and reporting sliding sales.

At the same time, Ulta has prioritized investment in e-commerce. In the company's latest quarter, sales at stores open at least 14 months climbed 16.7%, helped by a 59% surge in online sales. The same-store sales results topped the 14% to 15% clip the company had guided for and the 14.8% rate in the previous quarter.

In all for the October period, Ulta reported a profit of $87.6 million, or $1.40 a share, up from $71.1 million, or $1.11 a share, a year earlier, and above the $1.35 to $1.38 range the company had projected.

Revenue shot up 24% to $1.13 billion. Analysts were looking for $1.11 billion in revenue, according to Thomson Reuters.

For the year, Ulta now expects sales in the low twenties percentage range, up from its previous guidance for a high teens percentage. And earnings per share are anticipated to grow in the high twenties percentage range, compared with previous guidance for mid-twenties percent growth.

And for the final quarter of the year, the company said it expects sales of $1.52 billion to $1.54 billion, with comparable sales rising 12% to 14%. Analysts have projected $1.51 billion in revenue. Per-share earnings are expected in the range of $2.08 to $2.13, higher than the $2.05 analysts are predicting.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

December 01, 2016 17:25 ET (22:25 GMT)

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