Dec. 03--Retailer Ulta Beauty said sales and profits soared in the third quarter, topping Wall Street estimates and continuing a yearslong winning streak.
By the numbers: Ulta's earnings rose 20 percent in the quarter that ended Oct. 31, to $71.1 million from $59.1 million a year ago. Earnings per share rose to $1.11, up from 92 cents last year. Wall Street expected earnings per share of $1.05.
Third-quarter sales rose 22 percent to $910.7 million, up from $745.7million a year ago.
The "why": Ulta's online business is growing rapidly, as e-commerce sales spiked 56.3 percent year-over-year in the third quarter. At the same time, the retailer's in-store sales are nothing to sniff at -- sales in stores open at least a year rose 10.9 percent. Salon sales jumped 20 percent in the most recent quarter. Ulta said it opened 95 net new stores in the third quarter as well as its fourth distribution center in Greenwood, Ind.
Quote you on that: "We believe our efforts to build awareness of the Ulta Beauty brand are bringing more guests to discover our differentiated assortment and the benefits of our loyalty program, now boasting 17 million active members," CEO Mary Dillon said in a statement. "As a result of our financial performance in the third quarter and our position of strength heading into the holiday season, we are raising our guidance and now expect our 2015 full year earnings growth rate to be in the low twenties."
Fourth-quarter 2015 outlook: Ulta said it expects net sales in the range of $1.21 billion to $1.23 billion in the fourth quarter, up from $1 billion at the same time last year. It expects sales in stores open at least a year to rise between 8 percent and 10 percent. Profits per share should be in the range of $1.48 to $1.53 compared with $1.35 last year, the company said.
crshropshire@tribpub.com
