Business Is Booming at Ulta

Salon, cosmetics and fragrance retailer Ulta posted favorable financial results for the first quarter ended April 30, 2011.Net sales increased 20.6% to $386.0 million; while operating income increased 67.4% to $39.1 million. Net income increased 70.5% to $23.3 million.

“We had a terrific start to the year with total sales, comparable store sales and net income per share solidly ahead of our guidance, demonstrating the ongoing preference of our beauty experience and the continued success of our growth strategies,” stated Chuck Rubin, president and chief executive officer of Ulta. “Our first quarter results included net sales growth of 20.6% driven by an 11.1% increase in comparable store sales and the expansion of our store base. Operating income grew faster than sales climbing 67.4% from the first quarter last year to 10.1% of net sales. During the quarter, we gained market share advancing each of the priorities we set at the beginning of the year. To this end, we were pleased with our new store performance and remain on track to expand square footage by 16% this year.

“We generated consumer excitement and heightened interest in Ulta with newness across categories, brands and services. In addition, we saw robust growth in guest count in our Ulta stores and at ulta.com as we leveraged our active eight million-member loyalty base and delivered compelling social media, email and direct mail marketing campaigns. I am pleased with our positioning as we begin the second quarter and expect the continued implementation and strength of our strategies coupled with the focused execution of our team to result in a strong year of growth and significant accomplishments toward our long term goals.”

During the first quarter, the company opened five stores located in Davenport, IA; Keizer, OR; New Hartford, NY; Peabody, MA; and West Jordan, UT; relocated one store in Schaumburg, IL and remodeled two stores. The company ended the first quarter with 394 stores and square footage of 4,153,420, which represents a 14% increase in square footage compared to the first quarter of fiscal 2010.

For the second quarter of fiscal 2011, the company currently expects net sales in the range of $378 million to $384 million, compared to actual net sales of $321.8 million in the second quarter of fiscal 2010.

For fiscal 2011, the company continues to plan to open approximately 61 new storesand remodel 17 locations.