Ulta Salon Q3 Profit Rises - Update

(RTTNews) - Ulta Salon, Cosmetics & Fragrance Inc. (ULTA), Thursday reported an increase in third-quarter profit, helped largely by a jump in revenues. The beauty products retailer's fourth-quarter earnings and revenues also topped Wall Street estimates.

Bolingbrook, Illinois-based Ulta Salon's third-quarter profit rose to $71.1 million or $1.11 per share from $59.1 million or $0.91 per share last year. On average, 21 analysts polled by Thomson Reuters estimated earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Ulta Salon's third-quarter revenues jumped 22.1 percent to $910.7 million from $745.7 million a year ago. Analysts had a consensus revenue estimate of $880.0 million for the quarter.

Comparable sales, or sales for stores open at least 14 months and e-commerce sales, increased 12.8 percent compared to an increase of 9.5 percent last year.

Gross margins dropped to 36.9 percent from 37.8 percent last year, hurt largely by supply chain initiatives. Selling, general and administrative expenses, as a percentage of sales, decreased 30 basis points to 24.0 percent.

Looking forward to the fourth quarter, the company expects earnings of $1.48 to $1.53 per share and revenues of $1.21 billion to $1.23 billion. Analysts currently expect earnings of $1.50 per share on revenues of $1.22 billion for the quarter.

For the full year 2015, the company now expects earnings per share growth in the low twenties percent range and sales growth in the twenties range as well.

Earlier, the company expected earnings growth at high teens percentage and sales growth at mid to high teens percentage range.

ULTA closed Thursday's trading at $163.19, down $0.33 or 0.20%, on the Nasdaq. The stock, however, gained $9.78 or 5.99% in the after-hours trade.