Ulta Beauty Inc (ULTA) Q4 Net Sales Up 22.6% Y2Y

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Ulta Beauty Inc (NASDAQ:ULTA) unveiled its latest quarterly results after hours Thursday, posting strong revenue and adjusted earnings.

Ulta Beauty Inc (ULTA)
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The beauty salon chain announced operating income of $254.4 million, a 13.5% increase compared to the year-ago total of $224.2 million. Adjusted operating income was $266.7 million, a 19% gain compared to the $224.2 million from a year ago. The figure excludes a one-time tax reform bonus of $12.3 million.

Ulta Beauty’s net income soared 48.5% compared to the year-ago quarter from $140.2 million to $208.2 million in the quarter, while earnings per diluted share gained 51.8% to $3.40 per share, ahead of the $2.24 per share in the year-ago quarter.

On an adjusted basis, the company earned $2.75 per diluted share, excluding a 65-cent-per-share benefit linked with the changes in the U.S. tax code, beating the year-ago total of $2.24 per share. Ulta Beauty’s net sales surged 22.6% year-over-year to $1.94 billion, besting the year-ago revenue of $1.58 billion.

The salon operator’s comparable sales for stores open at least 14 months and its e-commerce business surged 8.8% year-over-year, below its year-ago fourth-quarter gain of 16.6%. The fiscal 2017 fourth-quarter 8.8% pop was spearheaded by a 6.2% transaction growth and a 2.6% growth in average ticket.

“Looking ahead to 2018, we are deploying a portion of the tax reform benefits to invest in our people and accelerate investments to drive growth and innovation,” said Mary Dillon, Ulta Beauty CEO.

“We also recognize operating margin headwinds from various cost pressures facing all retailers, our higher than expected mix of e-commerce, and the new revenue recognition accounting standard,” she added.

ULTA stock was trading flat after the bell.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/ulta-beauty-inc-ulta-3/.

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