Ulta Beauty, Inc. (ULTA) has reported a 39.41 percent jump in profit for the quarter ended Apr. 29, 2017. The company has earned $128.22 million, or $2.05 a share in the quarter, compared with $91.98 million, or $1.45 a share for the same period last year.
Revenue during the quarter grew 22.46 percent to $1,314.88 million from $1,073.72 million in the previous year period. Gross margin for the quarter contracted 16 basis points over the previous year period to 36.20 percent. Total expenses were 85.67 percent of quarterly revenues, down from 86.29 percent for the same period last year. This has led to an improvement of 62 basis points in operating margin to 14.33 percent.
Operating income for the quarter was $188.40 million, compared with $147.16 million in the previous year period.
"The Ulta Beauty team kicked off 2017 with excellent performance in the first quarter," said Mary Dillon, chief executive officer. "Strong execution of our growth strategies delivered above plan sales and earnings growth. Our results reflect continued newness and innovation in merchandising, successful marketing programs, steady progress in our salon business and exceptional growth in e-commerce."
For fiscal 2017, Ulta Beauty, Inc. plans to: achieve comparable sales growth of approximately 9% to 11%, including the impact of the e-commerce business, compared to previous guidance of 8% to 10% and grow e-commerce sales in the 50% range, compared to previous guidance of 40%.
For the second-quarter 2017, Ulta Beauty, Inc. forecasts revenue to be in the range of $1,257 million to $1,278 million. The company expects diluted earnings per share to be in the range of $1.72 to $1.77.
Operating cash flow improves
Ulta Beauty, Inc. has generated cash of $175.74 million from operating activities during the quarter, up 5.28 percent or $8.81 million, when compared with the last year period.
The company has spent $196.75 million cash to meet investing activities during the quarter as against cash outgo of $54.32 million in the last year period.
The company has spent $42.28 million cash to carry out financing activities during the quarter as against cash outgo of $219.20 million in the last year period.
Cash and cash equivalents stood at $321.72 million as on Apr. 29, 2017, up 34.47 percent or $82.47 million from $239.25 million on Apr. 30, 2016.
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