Do I even have to write this? Just as the company has done for 13 of the previous 14 quarters, Steiner Leisure
Profits grew even more pleasingly. Operating profits from continuing operations soared 25% higher, culminating in a bottom-line showing of $0.61 per share, though Wall Street was looking for only a $0.56-per-share showing.
Efficiency in its operations is the key to Stiener's success, although its reach didn't grow by much. The company has facilities on 122 cruise ships and 53 hotels. That's just two more ships and two more resorts than it had a year earlier. However, healthy bookings and higher-priced treatments are working in Steiner's favor as more people are turning up for spa treatments. The average revenue generated per staff member has grown from $428 a day in the fourth quarter of 2004 to $450 this past quarter.
It's not just the treatments, of course. A third of Steiner's sales are coming from its proprietary products. If you've ever been to a Steiner-run spa, you can imagine how easy a sell it is. When the opportunity arises to buy the products that you've just been pampered with, it's more than just an impulse shopping decision. It lingers beyond the initial sale, too. Since my wife and I went for a pair of treatments on a cruise, Steiner's Sharp Shower has been a bathroom staple.
It certainly helps that Steiner is also riding the growing cruise industry. You will find Steiner-run spas on the biggest ships in the fleets of Carnival
This has all added up well for investors. Steiner Leisure was recommended 17 months ago to subscribers of the Rule Breakers newsletter service. Even though it may have felt like an unconventional pick for "ultimate growth stock" investing, the shares have soared 92% higher since then.
That has helped it stand out in a crowd, despite four other Rule Breakers having gone on to more than double. The average selection has risen by 30.8%, many times over the 7.6% average advance by the S&P 500.
If you want to check out the newsletter for yourself, go for a free 30-day trial subscription. If you want to check out what a Steiner spa treatment feels like, go for it. Good luck trying to live your life without Sharp Shower after that.
Longtime Fool contributor Rick Munarriz hopes he didn't come off as a Sharp Shower salesman. He does own shares in Disney. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.