Ulta Salon, Cosmetics & Fragrance
The 10-second takeaway
For the quarter ended April 28 (Q1), Ulta Salon, Cosmetics & Fragrance met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Ulta Salon, Cosmetics & Fragrance reported revenue of $474.1 million. The nine analysts polled by S&P Capital IQ predicted a top line of $473.8 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $386.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.54. The eight earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.54 for Q1 were 46% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.0%, 110 basis points better than the prior-year quarter. Operating margin was 12.1%, 200 basis points better than the prior-year quarter. Net margin was 7.4%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $473.2 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $2.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 238 members out of 280 rating the stock outperform, and 42 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Ulta Salon, Cosmetics & Fragrance a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ulta Salon, Cosmetics & Fragrance is outperform, with an average price target of $100.29.
If you're invested in retailers like Ulta Salon, Cosmetics & Fragrance, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Ulta Salon, Cosmetics & Fragrance to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Ulta Salon and Cosmetics & Fragrance. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.