Ulta Stocks Rises on Pretty Q1, Outlook

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Ulta (ULTA) saw its stock jump after the company’s first-quarter earnings increased 19% from a year earlier.

UltaULTA stock is up 14% in early morning trading.

The solid Q1 numbers are due to an increase in sales, which have boomed in the past few years.

The cosmetics retailer saw its net income at $50 million (77 cents per share), which beat Wall Street expectations. It’s up from this time last year, when it netted $41.8 million (65 cents per share).

Sales numbers were also sky high for the company.

Ulta sales saw a 23% increase to $713.8 million in Q1, up from $582.7 million in this period last year. Both Wall Street analysts and Ulta itself put revenues at around $700 million.

So what’s to credit for the fast growth? Making the right calls (Via Market Watch):

The retailer, which sells makeup, perfume, and skin- and hair-care products had grown through the addition of new stores. However in March Ulta unveiled plans to open a net 100 stores in the current fiscal year, reflecting a slower pace from the 125 net new stores opened the previous fiscal year. In the latest period, Ulta added 21 new stores, bringing the total to 696.

Ulta CEO Mary Dillon, who joined the company last year, had predicted slower growth as new store openings were capped.

Ulta stock is up 15% from this time last year.


Article printed from InvestorPlace Media, https://investorplace.com/2014/06/ulta-stocks-q1-outlook/.

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