ULTA SALON, COSMETICS & FRAGRANCE, INC. (ULTA, Financial) filed Quarterly Report for the period ended 2008-11-01.
ULTA is the largest beauty retailer that provides one-stop shopping for prestige mass and salon products and salon services in the United States. ULTA provides affordable indulgence to its customers by combining the product breadth value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. ULTA offers a unique combination of over twenty one thousand prestige and mass beauty products across the categories of cosmetics fragrance haircare skincare bath and body products and salon styling tools as well as salon haircare products. ULTA also offers a full-service salon in all of its stores. ULTA SALON, COSMETICS & FRAGRANCE, INC. has a market cap of $487.27 million; its shares were traded at around $9.21 with a P/E ratio of 18.41 and P/S ratio of 0.53.
Net income increased $0.8 million, or 19.3%, to $5.0 million for the three months ended November 1, 2008, compared to $4.2 million for the three months ended November 3, 2007. The increase is primarily related to the $11.4 million increase in gross profit, partially offset by a $9.6 million increase in SG&A expenses.
Net sales increased $140.5 million, or 23.3%, to $743.3 million for the nine months ended November 1, 2008, compared to $602.8 million for the nine months ended November 3, 2007. The increase is due to an additional 67 net new stores operating since third quarter 2007 and a 3.2% increase in comparable store sales. Non-comparable stores contributed $154.8 million to net sales while comparable stores contributed $588.5 million to net sales. Our comparable store sales growth in 2008 was driven by positive customer traffic.
Net income increased $1.3 million, or 10.6%, to $13.0 million for the nine months ended November 1, 2008, compared to $11.7 million for the nine months ended November 3, 2007. The increase is primarily related to the $39.9 million increase in gross profit, partially offset by a $34.3 million increase in SG&A expenses and an incremental $3.4 million in pre-opening expenses.
On October 30, 2007, we completed an initial public offering in which we sold 7,666,667 shares of common stock to the public at a price of $18.00 per share resulting in aggregate gross proceeds from the sale of shares of common stock of $138.0 million. Selling stockholders sold approximately 2,153,928 additional shares of common stock. We did not receive any proceeds from the sale of shares by the selling stockholders. The aggregate net proceeds to us were $123.5 million after deducting $9.7 million in underwriting discounts and commissions and $4.8 million in offering expenses. We used the net proceeds from the offering to pay $93.0 million of accumulated dividends in arrears on the Companys preferred stock, which satisfied all amounts due with respect to accumulated dividends, $4.8 million to redeem the Companys Series III preferred stock, and $25.7 million to reduce our borrowings under our third amended and restated loan and security agreement and for general corporate purposes. Also in connection with the offering, the Company converted 41,524,002 preferred shares into common shares and restated the par value of its common stock to $0.01 per share.
Net cash provided by operating activities was $29.5 million for the nine months ended November 1, 2008 compared to net cash used by operating activities of $2.9 million for the nine months ended November 3, 2007. The increase in net cash provided by operating activities of $32.4 million is primarily attributable to increases of $12.6 million in deferred rent and $9.0 million in depreciation expense. These increases are related to the addition of 67 net new stores opened since November 3, 2007 and our second distribution center which opened in the first quarter of 2008. Deferred rent primarily represents construction allowances from landlords for tenant improvements.
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ULTA is the largest beauty retailer that provides one-stop shopping for prestige mass and salon products and salon services in the United States. ULTA provides affordable indulgence to its customers by combining the product breadth value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. ULTA offers a unique combination of over twenty one thousand prestige and mass beauty products across the categories of cosmetics fragrance haircare skincare bath and body products and salon styling tools as well as salon haircare products. ULTA also offers a full-service salon in all of its stores. ULTA SALON, COSMETICS & FRAGRANCE, INC. has a market cap of $487.27 million; its shares were traded at around $9.21 with a P/E ratio of 18.41 and P/S ratio of 0.53.
Highlight of Business Operations:
Net sales increased $46.6 million, or 22.4%, to $254.8 million for the three months ended November 1, 2008, compared to $208.2 million for the three months ended November 3, 2007. The increase is due to an additional 67 net new stores operating since third quarter 2007 and a 2.0% increase in comparable store sales. Non-comparable stores contributed $55.9 million to net sales while comparable stores contributed $198.9 million to net sales. Our comparable store sales growth in 2008 was driven by positive customer traffic.Net income increased $0.8 million, or 19.3%, to $5.0 million for the three months ended November 1, 2008, compared to $4.2 million for the three months ended November 3, 2007. The increase is primarily related to the $11.4 million increase in gross profit, partially offset by a $9.6 million increase in SG&A expenses.
Net sales increased $140.5 million, or 23.3%, to $743.3 million for the nine months ended November 1, 2008, compared to $602.8 million for the nine months ended November 3, 2007. The increase is due to an additional 67 net new stores operating since third quarter 2007 and a 3.2% increase in comparable store sales. Non-comparable stores contributed $154.8 million to net sales while comparable stores contributed $588.5 million to net sales. Our comparable store sales growth in 2008 was driven by positive customer traffic.
Net income increased $1.3 million, or 10.6%, to $13.0 million for the nine months ended November 1, 2008, compared to $11.7 million for the nine months ended November 3, 2007. The increase is primarily related to the $39.9 million increase in gross profit, partially offset by a $34.3 million increase in SG&A expenses and an incremental $3.4 million in pre-opening expenses.
On October 30, 2007, we completed an initial public offering in which we sold 7,666,667 shares of common stock to the public at a price of $18.00 per share resulting in aggregate gross proceeds from the sale of shares of common stock of $138.0 million. Selling stockholders sold approximately 2,153,928 additional shares of common stock. We did not receive any proceeds from the sale of shares by the selling stockholders. The aggregate net proceeds to us were $123.5 million after deducting $9.7 million in underwriting discounts and commissions and $4.8 million in offering expenses. We used the net proceeds from the offering to pay $93.0 million of accumulated dividends in arrears on the Companys preferred stock, which satisfied all amounts due with respect to accumulated dividends, $4.8 million to redeem the Companys Series III preferred stock, and $25.7 million to reduce our borrowings under our third amended and restated loan and security agreement and for general corporate purposes. Also in connection with the offering, the Company converted 41,524,002 preferred shares into common shares and restated the par value of its common stock to $0.01 per share.
Net cash provided by operating activities was $29.5 million for the nine months ended November 1, 2008 compared to net cash used by operating activities of $2.9 million for the nine months ended November 3, 2007. The increase in net cash provided by operating activities of $32.4 million is primarily attributable to increases of $12.6 million in deferred rent and $9.0 million in depreciation expense. These increases are related to the addition of 67 net new stores opened since November 3, 2007 and our second distribution center which opened in the first quarter of 2008. Deferred rent primarily represents construction allowances from landlords for tenant improvements.
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ULTA is in the portfolios of Ron Baron.More on ULTA:
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10-year financial history of ULTA.
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