06.07.10
Ulta Salon, Cosmetics & Fragrance, Inc. posted favorable financial results for the first quarter ended May 1, 2010. Net sales increased 19.1% to $320.2 million; while comparable store sales (sales for stores open at least 14 months) increased 10.8%, according to the company. Operating income increased 160.6% to $23.3 million; while net income increased 177.7% to $13.7 million.
Chief executive officer Lyn Kirby stated, "We are very pleased to report an excellent start to fiscal 2010. Our first quarter performance, which included a 10.8% comparable store sales increase and a 19.1% total sales increase, accelerated from our strong fourth quarter growth and exceeded our expectations. We attribute our ongoing strength to the success of our strategies including increasing profitable market share by capitalizing on the advantages of our business model with dynamic marketing, compelling brands and providing our customers with the preferred beauty shopping experience. Our sales growth was balanced across all major categories and our comparable store sales included increases in both customer counts and average ticket."
"In the second quarter, as outlined in our guidance, we expect to continue to see strong customer response to our topline strategies and expect to continue to deliver strong earnings growth," she continued. "During the second quarter, we will introduce the Philosophy skin care line, as we continue to expand our prestige offerings. Our new store expansion and remodel program for 2010 remains on track. Further, our expense and balance sheet management initiatives position us to continue to generate free cash flow while investing in support of our longterm growth.”
Following quarter end, Chuck Rubin joined Ulta as president and chief operating officer.
For the second quarter of fiscal 2010, the company currently expects net sales in the range of $311-$317 million, compared to actual net sales of $273.5 million in the second quarter of fiscal 2009. This assumes comparable stores sales increase 7% to 9%, compared to a decrease of 1.7% in the second quarter last year.
Chief executive officer Lyn Kirby stated, "We are very pleased to report an excellent start to fiscal 2010. Our first quarter performance, which included a 10.8% comparable store sales increase and a 19.1% total sales increase, accelerated from our strong fourth quarter growth and exceeded our expectations. We attribute our ongoing strength to the success of our strategies including increasing profitable market share by capitalizing on the advantages of our business model with dynamic marketing, compelling brands and providing our customers with the preferred beauty shopping experience. Our sales growth was balanced across all major categories and our comparable store sales included increases in both customer counts and average ticket."
"In the second quarter, as outlined in our guidance, we expect to continue to see strong customer response to our topline strategies and expect to continue to deliver strong earnings growth," she continued. "During the second quarter, we will introduce the Philosophy skin care line, as we continue to expand our prestige offerings. Our new store expansion and remodel program for 2010 remains on track. Further, our expense and balance sheet management initiatives position us to continue to generate free cash flow while investing in support of our longterm growth.”
Following quarter end, Chuck Rubin joined Ulta as president and chief operating officer.
For the second quarter of fiscal 2010, the company currently expects net sales in the range of $311-$317 million, compared to actual net sales of $273.5 million in the second quarter of fiscal 2009. This assumes comparable stores sales increase 7% to 9%, compared to a decrease of 1.7% in the second quarter last year.