BOLINGBROOK, Ill. (AP) — Ulta Salon, Cosmetics & Fragrance Inc. reported a good-looking start to its fiscal year on Tuesday as strong sales helped its profit jump nearly 50 percent.
The beauty products retailer earned $34.9 million, or 54 cents per share, for the quarter that ended April 28. That's up from $23.3 million, or 37 cents per share, earned in the same quarter last year.
Ulta's total revenue increased nearly 23 percent to $474.1 million. Its revenue from stores open at least a year rose 10 percent; that's a key indicator of a retailer's financial performance because it excludes stores that recently opened or closed.
CEO Chuck Rubin said the company benefited from new stores, an enhanced loyalty program, improved marketing and an increased focus on its online business. These moves, along with efforts to introduce customers to new brands, products and services, helped drive some of the gains.
Analysts had anticipated the company would earn 53 cents per share on revenue of $473.8 million, according to data from FactSet.
Ulta said it expects to earn 49 cents to 51 cents per share for its fiscal second quarter. This includes a cost of 2 cents per share tied to its plans to expand its boutiques within certain stores and open a new distribution center. It forecast revenue of $466 to $473 million. Analysts expect the company will earn 48 cents per share on revenue of $466.9 million.
Ulta did not issue specific earning guidance for the full year but said it expects its net income to rise more than the 25 percent to 30 percent it previously forecast.
Shares of the company rose 87 cents after hours to $88.25. They had ended regular trading up $1.09 at $87.38 on a day the broader markets rose.
Ulta, based in Bolingbrook, Ill., operates 467 stores across the country.