Thursday, Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA) reported an increase in net income for the third quarter on higher sales. The company also provided guidance for the fourth quarter.
Ulta Salon's net income increased by 68.6% to $8.5 million from $5.0 million in the year-ago period. Earnings per share increased to $0.14 per share from $0.09 per share a year-ago. On average, ten analysts polled by Thomson Reuters estimate earnings of $0.11 per share. Analysts' estimates typically exclude special items.
The Bolingbrook, Illinois-based company's net sales increased by 11.5% to $284.0 million from $254.8 million in the third quarter of fiscal 2008. Eight Wall Street analysts estimate revenues of $277.50 million for the quarter.
Ulta's cost of sales increased to $193.49 million from $175.36 million and selling, general and administrative expense for the quarter increased to $73.67 million from $65.17 million year-ago. Pre-opening expenses increased to $2.18 million from $4.69 million in the comparable period year-ago.
Comparable store sales or sales for stores open at least 14 months increased by 1.5% compared to an increase of 2.0% in the third quarter of the year-ago period.
During the third quarter, the company opened 12 stores. It ended the third quarter with 345 stores.
For the first nine months, the company's net income increased to $19.1 million or $0.32 per share from $13.0 million or $0.22 per share in the year-ago period. Year-to-date net sales increased by 11.2% to $826.4 million from $743.3 million in the first nine months of the comparable period year-ago.
For the fourth quarter of fiscal 2009, Ulta Salon forecasts earnings per share to be in the range of $0.22 - $0.26. The company currently expects net sales in the range of $362 million to $376 million. The Street estimates earnings of $0.25 per share on revenues of $377.09 million.
ULTA closed Thursday's last trade on the Nasdaq at $17.91, down $0.29 or 1.62%. IN the after hours the stock traded up $0.29 or 1.62%.
For comments and feedback: editorial@rttnews.com