Ulta Salon, Cosmetics & Fragrance Inc. built on higher sales and margins to lift fourth-quarter earnings 64.6 percent.
In the three months ended Jan. 30, the Bolingbrook, Ill.-based beauty retailer generated net income of $20.2 million, or 34 cents a diluted share, above the 30 cents expected by analysts polled by Yahoo Finance and the $12.3 million, or 21 cents, registered in the prior-year period.
Revenues rose 16.1 percent, to $396.4 million from $341.4 million, and were up 6.2 percent on a same-store basis. Gross margin rose to 31.4 percent of sales from 29.7 percent.
Lyn Kirby, president and chief executive officer, said the firm had achieved its three priorities for the year: growing profitable market share, achieving permanent cost efficiencies and delivering free cash flow. In the new year, she noted, “we are particularly optimistic about our opportunities for market share gains through comparable-store sales growth and new store expansion.”
The firm ended the quarter with 346 stores and expects to open 46 units, remodel 13 and relocate six in fiscal 2010.
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For the full year, net income expanded 55.8 percent to $39.4 million, or 66 cents, on a 12.7 percent sales increase, to $1.22 billion.
First-quarter earnings per share was projected to come in at between 14 cents and 16 cents.