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What's happening?
Shares of beauty-products retailer Ulta Salon (ULTA 0.13%) have shot 20% higher this morning following the release of strong second-quarter earnings.
Why it's happening
Ulta's quarterly revenue of $734.2 million, and its earnings of $0.94 per share, both came in well ahead of Wall Street's expectations for $711.4 million in revenue and $0.82 in EPS. The company's sales grew by 22.2% year-over year, led by a very impressive 54.9% rise in e-commerce sales and a combination of new stores (19 opened in the second quarter) and strong same-store sales, which were up 9.6% year-over-year.
The strong quarter gave Ulta management the impetus needed to boost its full-year guidance. Earlier estimates had called for growth in the mid-teen percentages range on both top and bottom lines, and today's guidance now expects year-over-year growth of 20% in revenue and EPS, which should result in 2014 revenue of about $3.2 billion and adjusted EPS of $3.79, giving Ulta a projected P/E of 30.8 after today's pop.
Want to read more about Ulta's great quarter? Click here for a detailed earnings analysis.
