Ulta shares jump after forecast tops analysts’ estimates

Bloomberg

Ulta Salon, Cosmetics & Fragrance Inc. rallied the most since 2014 after its first-quarter forecast topped analysts’ estimates, helped by growing demand for beauty products.
Earnings will be $1.25 to $1.30 a share in the period, the Bolingbrook, Illinois-based company said in a statement. Analysts’ had estimated $1.22 on average, according to data compiled by Bloomberg.
The company, which runs a chain of beauty salons, has carved out an area that isn’t getting hit by the same headwinds as other US retailers. It’s less susceptible to weather, weak mall traffic and fashion shifts, Chief Executive Officer Mary Dillon said on a conference call. Ulta expects same-store sales to grow 9 percent to 11 percent this quarter, a faster pace than most
retailers.
“I feel very confident that we can transcend what seems to be the overall retail trend,” Dillon said.
Ulta shares rose as much as 17 percent to $191.23 in New York, the biggest intraday gain since September 2014. The stock had been down 12 percent this year before the rally.
Ulta Salon, Cosmetics & Fragrance, Inc. is a chain of beauty stores in the United States. Ulta Beauty carries cosmeticsand skincare brands, men’s and women’s fragrances, and haircare products. Each store is also equipped with a salon. The company is headquartered in Bolingbrook, Illinois.
Ulta Beauty sales were $713.8 million for the first quarter ending in May 2014. At the end of the second quarter ending in August 2014, Ulta Beauty reported that total sales increased by 22.2 percent and comparable store sales Increased 9.6 percent.
Wall Street expected the company’s total sales to reach $3.19 billion for the fiscal year ending in February 2015, which would be almost three times the amount of Ulta Beauty’s sales levels in 2009. Ulta Beauty carries about 20,000 products and 460 brands in their traditional 10,000 square feet stores, offering both high-end and drugstore cosmetics, skincare, and fragrances.