Sales Jump 22% at Ulta

Ulta Beauty’s 2011 sales soared 22% to $1.77 billion. Net income increased 69% to $120 million.

“As we look forward into 2012 and beyond, we are focused on building upon our successful strategies and determining priorities for the strong cash position we have developed,” explained Chuck Rubin, president and chief executive. “Given the attractive returns from our new store program, we are further accelerating our square footage growth in 2012 to approximately 22%, or 100 new locations.”

Comparable store sales (sales for stores open at least 14 months) increased 10.9% compared to an increase of 11.0% in fiscal 2010; gross profit increased 140 basis points to 34.7% from 33.3% in fiscal 2010.

For the first quarter of fiscal 2012, the company currently expects net sales in the range of $452 million to $460 million, compared to actual net sales of $386 million in the first quarter of fiscal 2011. This assumes comparable stores sales increase 6% to 8%, compared to an 11.1% increase last year.

In 2012, the company expects comparable store sales growth at or slightly above the high end of its long term goal of 3-5%; deliver net income growth at the high end of its long-term target of 25- 30%, including the impact of the accelerated new store program; incur capital expenditures of approximately $170 million, compared to $128.6 million in fiscal 2011; expand square footage by approximately 22% with the opening of approximately 100 new stores; remodel approximately 21 locations; and generate free cash flow.