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Slowdown Continue balenciaga To
Uncertainty And Growth Slowdown Continue balenciaga To Weigh On
Shares
Shares of Ulta Salon, Cosmetics Fragrance (NASDAQ:ULTA) has had a tough week.
Shares of the beauty salon retailer have lost some 18% over the past five
trading days. Shares fell some 16% in Friday's trading session after the company
reported a disappointing set of fourthquarter results on Thursday after the
close.
FourthQuarter ResultsUlta Beauty generated revenues of $758.8 million for the
fourth quarter of 2012, up 30.3% compared to the year before. The company
benefited from the fact that the final quarter of the year contained an extra
working week. Sales were also driven by an impressive 8.0% increase in samestore
sales. Quarterly revenues beat consensus estimates of $753 million.
The company managed to boost gross margins by a modest 10 basis points
towards 34.2%. Operating sales leverage resulted in a steep decline in selling,
general and administrative expenses, which fell 100 basis points towards 20.3%
of total revenues.
Consequently, operating income rose 41.7% to $103.8 million. Net income rose
a similar percentage towards $64.5 million, while earnings per share rose 37% to
$1.00 per share. Fourthquarter earnings were boosted by $0.05 per share as a
result of the 14th working balenciaga handbag
week. Earnings beat consensus estimates of $0.98 per share.
InterimCEO Dennis Eck commented on the results, "The Ulta team achieved
strong fourth quarter results to complete an exceptional year in 2012. Excellent
execution of our multiyear growth strategy was evident in the milestones
achieved during the year: we increased square footage by 23% with the addition
of 101 net new stores, we greatly enhanced our offering with newness across the
board, we implemented a new Customer Relationship Management platform, broadened
our market reach and brand awareness, and improved our digital capabilities
including rapid growth in our ecommerce business."
OutlookFor the current first quarter of its fiscal 2013, Ulta Beauty expects
to generate revenues between $568 and $577 million. At the midpoint of the
guidance, revenues are expected to increase 21% compared with last year's
revenues of $474.1 million. The revenue guidance fell slightly short of
consensus estimates of $579 million.
Comparable samestore sales growth rates are expected to come in between 4 and
6%, compared with a growth rate of 10.1% in the first quarter of past year.
Comparable sales will be boosted by approximately 100 basis points as ecommerce
sales will now be added into the calculation as well.