ULTA Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA)
On Thursday March 10th 2015, Ulta Salon reported its fourth quarter and year-end
earnings report; and boy was it a ‘“pretty” good one. The company, which manufactures and retails products in the beauty industry- mainly geared toward the adult woman and man and in some instances possibly children (think Models), blew away all earnings and revenue estimates that were expected from them.
ULTA, The Numbers and Reaction
The company reported fourth quarter adjusted net income of nearly $108 million dollars, which equates to $1.69 per share. The average estimate by analysts had them coming in at $1.54 per share. The revenues they posted were $1.27 billion dollars versus expected of $1.24 billion dollars. To say that Ulta is firing on all cylinders may be an understatement, in an economy that is considered weak or flailing to say the least.
With a huge amount of American citizens who want to look and feel healthy and young and beautiful, ULTA products fit right in the American way with peanut butter and jelly, baseball, and apple pie: a few other American favorite desires and passions.
Immediately after the numbers were released shares rocketed up- surpassing all levels of resistance From the beginning of this year and closing at $183.85 which was up $20.46 in the after-market trading session. This equates to a +12.5 % move which was among the highest of any stock after reporting earnings today. During the regular session alone it was up $4.38 or 2.75% closing at $163.39.
Here is a detailed, abbreviated summary of just how well ULTA did during this earnings period:
Total Sales Increased 21.1%
Comparable Sales Increased 12.5%
Diluted EPS Increased 25.2% to $1.69
Announces $200 Million Accelerated Share Repurchase Plan
Provides FY2016 Outlook for 18% to 20% Earnings Per Share Growth -BusinessWire
The Chart /Technicals
When we take a look at the daily price chart going back to the middle of 2015, we will see two important levels- an upper channel line and a lower channel line represented by a red and a green horizontal line. These lines represent areas between which ULTA has traded throughout this time period. Even with today’s huge aftermarket move however, the price still falls slightly below the red resistance line shown on the chart which is labeled “resistance” in green letters. This will be a formidable area to get through, and many Traders, like these, and investors alike will be watching how price reacts tomorrow when the market opens and attempts to break through that level.
“Our fourth quarter results capped an exceptional year during which we made significant progress against our strategic imperatives, while achieving outstanding sales and earnings growth. We continue to benefit from the powerful combination of strong demand in the beauty category and Ulta Beauty’s highly differentiated offering that propels our business to transcend prevailing trends across the retail landscape,” said Mary Dillon, Chief Executive Officer. “Today we are pleased to announce an accelerated share repurchase plan that demonstrates our commitment to creating and returning value to shareholders.” -YahooFinace
Ulta Salon, Cosmetics & Fragrance, Inc. operates as a specialty retailer in the United States. The companys stores provide cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. It also offers cosmetics, which includes products for the face, eyes, cheeks, lips, and nails; haircare products, such as shampoos, conditioners, styling products, and hair accessories; and salon styling tools comprising hair dryers, curling irons, and flat irons. In addition, the company provides skincare, and bath and body products consisting of products for face, hands, and body; fragrances; nail polish and nailcare products; and mens skincare, haircare, and fragrance products. Further, it offers private label products consisting of Ulta branded cosmetics, skincare, bath and body products, and haircare products; and other health and beauty products. As of August 1, 2015, it operated 817 stores in 48 states. Its full-service salon in its stores offers haircuts, hair coloring, and texturizing, as well as facials and waxing; and offers its products through its Website, ulta.com. Ulta Salon, Cosmetics & Fragrance, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.-YahooFinance