Sometimes reporting double digit sale growth just doesn't impress.
Ulta reported its seventh straight quarter of double-digit growth, with same-store sales up 14.4 percent in Q2, a jump on the 10.1 percent logged a year ago during the same time period. Even stronger — eCommerce sales were up 54.9 percent. Retail same-store sales were up 12.6 percent, while salon same-store sales were up 8 percent. And all of these numbers were well above what analysts were throwing up in expectations — same store sales were expected to be up 12.9 percent.
In other figures, Q2 profit was $90 million, or $1.43 per share, up from Q2 2015 profit of $74.2 million, or $1.15 per share. Revenue rose 22 percent to $1.07 billion.
So stock obviously soared after all those figures — after all, in this Q2 retail stores have seen stock prices go up for merely not losing as much money as analysts were expecting them to.
Nope, Ulta share fell 2 percent because they set Q3 predictions between $1.25 and $1.30 per share. Analysts are predicting $1.29 per share. Still, given that 2 percent dip comes following 77 percent growth in stock price over the last 12 months, it seems a small correction at worst.
The fundamentals for Ulta remain strong — the company is supporting 907 stores and 9.5 million square feet of retail space, an 11 percent increase over the same time last year. That translates into 24 new locations opening during Q2 and 3 stores closing. Ulta has plans to add 100 news stores and an expansion of square footage of 11 percent with 12 locations facing remodeling. Sales are forecasted to pull in more double-digit increases in the teens in Q3, and eCommerce sales are expected to rise 40 percent.
"We've seen progress on many elements of our growth strategy,” CEO Mary Dillon said in a statement. “Our second quarter results reflect a strong pipeline of newness and innovation in merchandising, progress in growing our brand awareness, major milestones related to our loyalty program, continued rapid growth in our e-commerce business, and successful execution of our supply chain investments.”
