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Ulta Continues Strong Financial Performance with Q3 2012 Results
Posted: November 30, 2012
Ulta Beauty released its financial results for the thirteen week period (third quarter) and thirty-nine week period (first nine months) ended October 27, 2012, which compares to the same periods ended October 29, 2011.
For the third quarter, net sales increased 22.4% to $505.6 million from $413.1 million in the third quarter of fiscal 2011, and comparable store sales (sales for stores open at least 14 months) increased 8.4% compared to an increase of 9.6% in the third quarter of fiscal 2011. Net income increased 42.5% to $38.2 million compared to $26.8 million in the third quarter of fiscal 2011; and income per diluted share increased 40.5% to $0.59 compared to $0.42 in the third quarter of fiscal 2011.
Chuck Rubin, the company’s president and CEO, stated, “Ulta drove better than expected sales growth and operating margin improvement to deliver outstanding performance in the third quarter. We gained market share across all of our major product categories through our disciplined focus on the five components of our multi-year growth strategy: accelerating store growth, introducing new products, services and brands, enhancing our loyalty program, broadening our marketing reach, and increasing our digital focus including Ulta.com. Ulta’s third quarter underscores our team’s strength in execution: we opened 49 stores, increasing Ulta’s store base by 10% during a single quarter, and we completed most of the previously announced prestige brand boutiques. We ended the quarter with Lancôme boutiques in 79 of our stores and Clinique boutiques in 42 stores. Looking ahead to next year, based on the high quality of available real estate and our team’s proven ability to execute, we expect to exceed our long-term plans for 15% to 20% annual store growth and currently plan to open approximately 125 stores in 2013, representing 22% square footage growth. We are confident that Ulta will continue to grow its position as a beauty and trend authority and drive strong sales and profit growth in the quarters and years to come.”
For the first nine months, net sales increased 22.4% to $1,461.4 million from $1,193.6 million in the first nine months of fiscal 2011, and comparable store sales increased 9.3% compared to an increase of 10.7% in the first nine months of fiscal 2011. Net income increased 46.0% to $108 million compared to $74 million in the first nine months of fiscal 2011; and income per diluted share increased 43.6% to $1.68 compared to $1.17 in the first nine months of fiscal 2011.
For the fourth quarter of fiscal 2012, Ulta expects net sales in the range of $742–754 million, compared to actual net sales of $582.5 million in the fourth quarter of fiscal 2011. This assumes comparable store sales increase 5–7%, and includes the impact of Hurricane Sandy. Comparable store sales increased 11.5% in the fourth quarter of 2011. Income per diluted share for the fourth quarter of fiscal 2012 is estimated to be in the range of $0.96 to $0.98. This compares to income per diluted share for fourth quarter of fiscal 2011 of $0.73.