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ULTA SALON, COSMETICS & FRAGRANCE, INC. Reports Operating Results (10-Q)

December 02, 2010 | About:

ULTA SALON, COSMETICS & FRAGRANCE, INC. (NASDAQ:ULTA) filed Quarterly Report for the period ended 2010-10-30.

Ulta Salon, Cosmetics & Fragrance, Inc. has a market cap of $2.15 billion; its shares were traded at around $36.47 with a P/E ratio of 39.2 and P/S ratio of 1.8. ULTA is in the portfolios of RS Investment Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Net sales increased $55.2 million, or 19.4%, to $339.2 million for the three months ended October 30, 2010, compared to $284.0 million for the three months ended October 31, 2009. The increase is primarily due to comparable stores driving an increase of $33.2 million in net sales when compared to last year and an additional 39 net new stores operating since October 31, 2009 which contributed $22.0 million to net sales.

Gross profit increased $27.2 million, or 29.7%, to $118.9 million for the three months ended October 30, 2010, compared to $91.7 million for the three months ended October 31, 2009. Gross profit as a percentage of net sales increased 280 basis points to 35.1% for the three months ended October 30, 2010, compared to 32.3% for the three months ended October 31, 2009. The increases in gross profit margin were primarily driven by:

Net income increased $5.7 million, or 67.9%, to $14.2 million for the three months ended October 30, 2010, compared to $8.5 million for the three months ended October 31, 2009. The increase is primarily related to the $27.2 million increase in gross profit, offset by a $15.5 million increase in SG&A expenses and a $4.0 million increase in income tax expense.

Net sales increased $154.8 million, or 18.7%, to $981.2 million for the nine months ended October 30, 2010, compared to $826.4 million for the nine months ended October 31, 2009. The increase is primarily due to comparable stores driving an increase of $90.2 million in net sales when compared to last year and an additional 39 net new stores operating since October 31, 2009 which contributed $64.6 million to net sales.

Gross profit increased $77.5 million, or 31.0%, to $327.4 million for the nine months ended October 30, 2010, compared to $249.9 million for the nine months ended October 31, 2009. Gross profit as a percentage of net sales increased 320 basis points to 33.4% for the nine months ended October 30, 2010, compared to 30.2% for the nine months ended October 31, 2009. The increase in gross profit margin was primarily driven by:

Net income increased $21.8 million, or 113.9%, to $40.9 million for the nine months ended October 30, 2010, compared to $19.1 million for the nine months ended October 31, 2009. The increase is primarily related to the $77.5 million increase in gross profit, offset by a $40.2 million increase in SG&A expenses and a $15.4 million increase in income tax expense.

Read the The complete Report

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10qk
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