Free Research Report as Ulta Beauty’s Sales Jumped 18.6%; EPS Surged 21.4%

LONDON, UK / ACCESSWIRE / January 03, 2018 / Active-Investors.com has just released a free earnings report on Ulta Beauty, Inc. (NASDAQ: ULTA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ULTA. Ulta Beauty reported its third quarter fiscal 2017 operating results on November 29, 2017. The specialty retailer surpassed earnings estimates and provided guidance for the upcoming quarter and fiscal year.Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Ulta Beauty most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Ulta Beauty’s net sales surged 18.6% to $1.34 billion for Q3 2017 compared to $1.13 billion in Q3 2016. The Company estimated that Hurricanes Harvey and Irma resulted in approximately $14 million in lost sales. Ulta Beauty’s sales numbers were in-line with analysts’ expectations of $1.34 billion.

For Q3 2017, Ulta Beauty’s comparable sales (sales for stores open at least 14 months and ecommerce sales) grew 10.3% on a y-o-y basis, driven by 6.0% transaction growth and 4.3% growth in average ticket. The Company estimated that Hurricanes Harvey and Irma resulted in approximately 100 basis points of negative impact to comparable stores sales in the reported quarter.

During Q3 2017, Ulta Beauty’s retail comparable sales increased 6.6%, including salon comparable sales growth of 3.8%. The Company’s salon sales increased 10.8% to $66.9 million from $60.4 million in the year ago same period. Ulta Beauty’s ecommerce sales grew 62.9% to $119.8 million from $73.6 million in Q3 2016, representing 370 basis points of the total Company comparable sales growth of 10.3%.

Ulta Beauty’s gross profit as a percentage of net sales decreased 110 basis points to 36.7% from 37.8% in Q3 2016, due to deleverage in merchandise margins. The Company’s selling, general, and administrative (SG&A) expenses as a percentage of net sales decreased 90 basis points to 23.9% compared to 24.8% in the year earlier corresponding quarter, due to leverage in corporate overhead and variable store expenses attributed to cost efficiencies and higher sales volume.

During Q3 2017, Ulta Beauty’s real estate activity included 48 new stores, 2 relocations, and 5 remodels compared to 42 new stores, 1 relocation, and 6 remodels in Q3 2016. The Company’s operating income advanced 16.5% to $162.7 million, or 12.1% of net sales, compared to $139.7 million, or 12.4% of net sales, in the prior year’s same quarter.

Ulta Beauty’s net income increased 19.5% to $104.6 million in Q3 2017 compared to $87.6 million in Q3 2016. The Company’s income per diluted share increased 21.4% to $1.70, including a benefit of $0.04 due to a lower tax rate, a benefit of $0.03 due to a lower share count, offset by approximately $0.08 due to the impact of Hurricanes Harvey and Irma in the reported quarter compared to $1.40 in Q3 2016. Ulta Beauty’s earnings beat Wall Street’s estimates of $1.66 per share.

Balance Sheet

Ulta Beauty’s merchandise inventories at the end of Q3 2017 totaled $1.35 billion compared to $1.14 billion at the end of Q3 2016, representing an increase of $212.7 million. The Company’s average inventory per store increased 6.5% on a y-o-y basis. The increase in inventory was driven by 109 net new stores; the opening of the Dallas, Texas distribution center; investments in inventory to ensure high in-stock levels to support sales growth; and incremental inventory for new brands and the expansion of certain prestige brands.

Ulta Beauty ended Q3 2017 with $106.8 million in cash and short-term investments.

Share Repurchase Program

During Q3 2017, Ulta Beauty repurchased 590,861 shares of its stock at a cost of $131.7 million. Year-to-date fiscal 2017, the Company has repurchased 1.24 million shares at a cost of $309.8 million. As of October 28, 2017, $136.4 million remained available under the $425.0 million share repurchase program announced in March 2017.

Store Expansion

During Q3 2017, Ulta Beauty opened 48 stores. The Company ended the reported quarter with 1,058 stores and square footage of 11,140,819, representing a 11.3% increase in square footage compared to Q3 2016.

Outlook

For Q4 2017, Ulta Beauty is forecasting net sales in the range of $1.93 billion to $1.96 billion compared to actual net sales of $1.58 billion in Q4 2016. Comparable sales for the upcoming quarter, including ecommerce sales, are expected to increase 8% to 10%.

For Q4 2017, Ulta Beauty is projecting income per diluted share to be in the range of $2.73 to $2.78. This assumes a tax rate of 37.4% and excludes any impact of the new accounting standard for share-based payments.

For FY17, Ulta Beauty is projecting comparable sales growth of approximately 10% to 11%, including the impact of the ecommerce business, to grow ecommerce sales in the 50% to 60% range, open approximately 100 new stores and remodel 11 locations, and relocate 7 stores.

Stock Performance Snapshot

January 02, 2018 - At Tuesday’s closing bell, Ulta Beauty’s stock advanced 2.67%, ending the trading session at $229.63.

Volume traded for the day: 971.15 thousand shares.

Stock performance in the last month – up 3.57%; previous three-month period – up 2.61% and year-to-date – up 2.67%

After yesterday’s close, Ulta Beauty’s market cap was at $14.11 billion.

Price to Earnings (P/E) ratio was at 29.38.

The stock is part of the Services sector, categorized under the Specialty Retail, Other industry. This sector was up 1.7% at the end of the session.

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