Ulta Beauty, Inc. (ULTA) has reported a 30.04 percent jump in profit for the quarter ended Jan. 28, 2017. The company has earned $140.22 million, or $2.24 a share in the quarter, compared with $107.82 million, or $1.69 a share for the same period last year.
Revenue during the quarter grew 24.62 percent to $1,580.57 million from $1,268.30 million in the previous year period. Gross margin for the quarter contracted 14 basis points over the previous year period to 34.48 percent. Total expenses were 85.81 percent of quarterly revenues, down from 86.64 percent for the same period last year. This has led to an improvement of 82 basis points in operating margin to 14.19 percent.
Operating income for the quarter was $224.23 million, compared with $169.49 million in the previous year period.
"The Ulta Beauty team delivered outstanding fourth quarter results, capping an exceptional year of sales and earnings growth while investing to drive market share gains and create sustainable long term shareholder value," said Mary Dillon, chief executive officer. "We are confident in our outlook for continued success in 2017 as we execute our strategy to be a destination for All Things Beauty, All in One Place. Our new brand pipeline is very healthy and we are particularly excited to announce the addition of the Estee Lauder Companies' MAC brand, which will launch on Ulta.com and begin to roll out to stores this spring
For fiscal 2017, Ulta Beauty, Inc. plans to: achieve comparable sales growth of approximately 8% to 10%, including the impact of the e-commerce business and grow e-commerce sales in the 40% range.
For the first-quarter 2017, Ulta Beauty, Inc. forecasts revenue to be in the range of $1,244 million to $1,265 million. The company expects diluted earnings per share to be in the range of $1.75 to $1.80.
Operating cash flow improves significantly
Ulta Beauty, Inc. has generated cash of $634.68 million from operating activities during the year, up 68.86 percent or $258.81 million, when compared with the last year. The company has spent $273.75 million cash to meet investing activities during the year as against cash outgo of $278.96 million in the last year.
The company has spent $321.77 million cash to carry out financing activities during the year as against cash outgo of $140.22 million in the last year period.
Cash and cash equivalents stood at $385.01 million as on Jan. 28, 2017, up 11.33 percent or $39.17 million from $345.84 million on Jan. 30, 2016.
Working capital increases marginally
Ulta Beauty, Inc. has recorded an increase in the working capital over the last year. It stood at $1,006.89 million as at Jan. 28, 2017, up 2.85 percent or $27.95 million from $978.95 million on Jan. 30, 2016. Current ratio was at 2.90 as on Jan. 28, 2017, down from 3.47 on Jan. 30, 2016.
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