First quarter net sales increase 12.3%
Ulta Salon, Cosmetics & Fragrance, Inc. posted favorable financial results for the first quarter ended May 2, 2009. Net sales increased 12.3% to $268.8 million. Operating income rose 10.8% to $9 million.
Lyn Kirby, Ulta’s president and chief executive officer, stated: “In a difficult retail environment, we continue to build our customer base and grow loyalty to the Ulta brand, as evidenced by the 2% increase in traffic and expansion in our market share. As a result, our comparable store sales were at the top end of our first quarter guidance and with careful expense control we achieved earnings ahead of our guidance. Additionally, the prudent management of working capital and capital investment drove $5.6 million in free cash flow for the quarter.”
“As we begin the second quarter, we remain confident in our ability to win market share by continuing to execute on our core strategies, new brand expansion, and unique merchandising and marketing,” Ms. Kirby continued. “Quarter-to-date, our comparable store sales are consistent with our performance in the first quarter and we are excited about the expanded rollout of Benefit cosmetics that begins this week.”
“With a balanced approach to optimizing both top- and bottom-line performance, we expect to navigate this tough environment while continuing to position Ulta for stronger performance when the economy improves. Our continued focus on inventory management and expense control has resulted in permanent efficiency gains that are expected to improve our profit potential in both the short and long term. We expect the market share gains that we are currently achieving to broaden our loyalty club membership, and we will be poised to capitalize on our strengthened customer base, in a better economy. We remain confident in our 1,000 store target and are prepared to accelerate store growth in 2010 based on the availability of quality real estate,” Ms. Kirby concluded.
During the first quarter, the Company opened nine stores, one each in Opelika, AL; Oro Valley, AZ; Queen Creek, AZ; Brentwood, CA; Fresno, CA; Grand Junction, CO; Rochester Hills, MI; Cherry Hill, NJ; and Horseheads, NY. It ended the first quarter with 320 stores and square footage of 3,334,485, which represents a 21% increase compared to the first quarter of fiscal 2008.
For the second quarter of fiscal 2009, the company currently expects net sales in the range of $264 million to $272 million.
Lyn Kirby, Ulta’s president and chief executive officer, stated: “In a difficult retail environment, we continue to build our customer base and grow loyalty to the Ulta brand, as evidenced by the 2% increase in traffic and expansion in our market share. As a result, our comparable store sales were at the top end of our first quarter guidance and with careful expense control we achieved earnings ahead of our guidance. Additionally, the prudent management of working capital and capital investment drove $5.6 million in free cash flow for the quarter.”
“As we begin the second quarter, we remain confident in our ability to win market share by continuing to execute on our core strategies, new brand expansion, and unique merchandising and marketing,” Ms. Kirby continued. “Quarter-to-date, our comparable store sales are consistent with our performance in the first quarter and we are excited about the expanded rollout of Benefit cosmetics that begins this week.”
“With a balanced approach to optimizing both top- and bottom-line performance, we expect to navigate this tough environment while continuing to position Ulta for stronger performance when the economy improves. Our continued focus on inventory management and expense control has resulted in permanent efficiency gains that are expected to improve our profit potential in both the short and long term. We expect the market share gains that we are currently achieving to broaden our loyalty club membership, and we will be poised to capitalize on our strengthened customer base, in a better economy. We remain confident in our 1,000 store target and are prepared to accelerate store growth in 2010 based on the availability of quality real estate,” Ms. Kirby concluded.
During the first quarter, the Company opened nine stores, one each in Opelika, AL; Oro Valley, AZ; Queen Creek, AZ; Brentwood, CA; Fresno, CA; Grand Junction, CO; Rochester Hills, MI; Cherry Hill, NJ; and Horseheads, NY. It ended the first quarter with 320 stores and square footage of 3,334,485, which represents a 21% increase compared to the first quarter of fiscal 2008.
For the second quarter of fiscal 2009, the company currently expects net sales in the range of $264 million to $272 million.
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