ULTA - Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ Stock)

[BadThad]

Google biggest loser yesterday, I'm liking this for bottom play. Looks to be a solid company, relatively new IPO (25OCT2007), financials look good.

ULTA on Google Finance (http://finance.google.com/finance?q=ulta)

Chart (http://stockcharts.com/h-sc/ui?s=ULTA&p=D&b=5&g=0&id=p30219565607)

Company Website (http://www.ulta.com/ulta/)

Today's Price: $19.28

[BadThad]

Here's the earnings report from yesterday:

Ulta Announces Third Quarter Fiscal 2007 Results - Introduces Guidance
7:00a ET December 11, 2007 (Business Wire)
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), today announced financial results for the thirteen week ("Third Quarter") and thirty-nine week ("First Nine Months") periods ended November 3, 2007, which compares to the same periods ended October 28, 2006 in the prior year.

For the Third Quarter:

-- Net sales increased 25.4% to $208.2 million from $166.1 million in the third quarter of fiscal 2006;

-- Comparable store sales (sales for stores open at least 14 months) increased 6.7%, compared to an increase of 15.6% (as realigned for the 53rd week calendar shift) in the third quarter of fiscal 2006;

-- Operating income increased 13.2% to $8.0 million, compared to $7.0 million in the third quarter of fiscal 2006;

-- Net income rose 16.3% to $4.2 million, compared to $3.6 million in the third quarter of fiscal 2006;

-- On a GAAP basis, income per diluted share was $0.05, compared to income per diluted share of $0.00 in the third quarter of fiscal 2006; and

-- Adjusted income per diluted share was $0.08, compared to adjusted income per share of $0.07 in the third quarter of fiscal 2006. Adjusted income per share excludes the effects of preferred stock dividends and equalizes the dilutive effects of the preferred shares for the period. See Exhibit 4 for a complete description of adjusted income per basic and diluted share and reconciliation to the GAAP equivalents.

Lyn Kirby, Ulta's President and Chief Executive Officer, stated: "The third quarter marked a highly productive and successful period for our Company. We reported continued strength in sales and earnings, demonstrating our ongoing ability to provide consumers with a compelling beauty shopping experience, by having the right brands and the right value proposition available at convenient locations with friendly, approachable service. We successfully opened a record 26 new stores and remodeled 7 existing locations during the quarter. I am pleased with our positioning as we start the holiday period and equally excited to begin this next phase of our journey as a public company focused on increasing value for all Ulta stakeholders."

On October 30, 2007, Ulta closed its initial public offering of common stock in which the Company sold 7,666,667 shares raising net proceeds of $123.9 million. Net proceeds were used to pay $93.0 million of accumulated preferred dividends, $4.8 million to redeem the Company's Series III preferred stock, and $26.1 million to reduce borrowings and for general corporate purposes. In connection with the offering, the Company also converted 41,524,002 preferred shares into common shares.

For the First Nine Months:

-- Net sales increased 23.5% to $602.8 million from $488.1 million in the first nine months of fiscal 2006;

-- Comparable store sales increased 7.4%, compared to a comparable store sales increase of 13.7% (as realigned for the 53rd week calendar shift) in the first nine months of fiscal 2006;

-- Operating income was $22.8 million, compared to $23.8 million in the first nine months of fiscal 2006. Operating income for the fiscal 2007 first nine month period includes the impact of $2.8 million of warehouse management software implementation related costs, $1.9 million of incremental accelerated depreciation expense related to the Company's store remodel program, and $3.8 million of incremental pre-opening expenses;

-- Net income was $11.7 million, compared to $12.9 million in the first nine months of fiscal 2006;

-- On a GAAP basis, income per diluted share was $0.05, compared to income per diluted share of $0.26 in the first nine months of fiscal 2006; and

-- Adjusted income per diluted share was $0.20, compared to $0.23 in the first nine months of fiscal 2006. Adjusted income per share excludes the effects of preferred stock dividends and equalizes the dilutive effects of the preferred shares for the period. See Exhibit 4 for a complete description and reconciliation of adjusted income per basic and diluted share and reconciliation to the GAAP equivalents.

Third Quarter Operating Highlights

The net sales increase was driven by a 6.7% comparable sales increase and 49 new stores opened since the third quarter last year. The comparable store sales increase reflected solid gains in customer traffic and average ticket growth driven by the effectiveness of our marketing strategy and the continued strength in the Prestige category. The Company successfully re-launched its e-commerce site on November 16, 2007, which was later than originally planned and therefore modestly affected total sales growth in the quarter.

Gross profit in the third quarter of fiscal 2007 was $68.1 million, or 32.7% of net sales, compared to $50.7 million, or 30.6% of net sales, in fiscal 2006. The improvement in gross profit margin for the third quarter of fiscal 2007 is primarily due to an increase in vendor advertising allowances largely offsetting increased advertising expense incurred during the period. There was also a decrease in the amount of accelerated depreciation associated with store remodels as compared to the same period in fiscal 2006.

Selling, general and administrative expenses (SG&A) in the third quarter of fiscal 2007 were $55.6 million, or 26.7% of net sales, compared to $40.8 million, or 24.6% of net sales, in the third quarter of fiscal 2006. The increase in third quarter SG&A as a percentage of net sales is primarily due to one incremental advertising vehicle during the quarter due to the 53rd week calendar shift as well as incremental advertising expense, both of which were largely offset by increased vendor advertising allowances. The Company also incurred incremental stock compensation expense of approximately $0.9 million versus the same period last year.

Pre-opening expenses in the third quarter of fiscal 2007 were $4.5 million, or 2.2 % of net sales, compared to $2.9 million, or 1.7% of net sales for the third quarter of fiscal 2006 reflecting 26 new stores and 7 remodeled stores opened during the quarter as compared to 11 new stores and 5 remodels in the prior year quarter.

Merchandise inventories at the end of the quarter were $219.5 million reflecting a $62.7 million increase compared to the fiscal 2006 third quarter. Approximately $42.7 million of the increase resulted from the addition of 49 new stores opened since the end of the fiscal 2006 third quarter. In addition, approximately $15.0 million of the inventory increase relates to the calendar shift. This calendar shift causes each quarter in fiscal 2007 to begin and end one week later than the comparable prior year quarter. As a result, the third quarter in fiscal 2007 ended one week closer to Christmas resulting in an additional $15.0 million of seasonal inventory, as measured on an average per store basis. Excluding the effects of the calendar shift, inventory at November 3, 2007, on an average per store basis, increased 3% compared to the prior year quarter end.

Outlook

"As we look ahead, we continue to believe we are operating in the highly desirable specialty retail channel, within the beauty category, which is poised for sustained rates of growth. At the same time, we recognize that the macro economic environment has created increased levels of competition for consumer spending across all retail sectors and the retail calendar this year has lengthened the holiday season with critical shopping weeks still ahead of us. As we continue into the holiday season, we will prudently balance marketing to drive comparable store sales against the goal of maximizing profitability and earnings. With this in mind, we have provided guidance for the fourth quarter that we believe is realistic and achievable taking into account the promotional nature of the holiday shopping season to date," Ms. Kirby concluded.

The Company is introducing fourth quarter and full year guidance for fiscal 2007. For the fourth quarter of fiscal 2007, the Company estimates net sales in the range of $304 million to $310 million, compared to actual fourth quarter fiscal 2006 net sales of $267.0 million. Comparable store sales are expected to increase in the range of 4% to 6%. Income per diluted share is estimated in the range of $0.22 to $0.24, compared to actual fourth quarter fiscal 2006 income per diluted share of $0.19.

For the full year fiscal 2007, the Company estimates net sales in the range of $907 million to $913 million, compared to actual fiscal 2006 net sales of $755.1 million. Comparable store sales are expected to increase by 6.2% to 6.9%. Income per diluted share is estimated in the range of $0.47 to $0.49, compared to actual fiscal 2006 income per diluted share of $0.45.

The Company's annual long term growth targets include: (i) comparable store sales increase in the mid single digit range; (ii) square footage expansion of 20% - 25%; and (iii) net income growth of 25% - 30%.

Store Opening Plans

The Company plans to open 53 new stores and remodel 17 stores in fiscal 2007. During the third quarter, the Company opened 26 stores and remodeled 7 stores ending the quarter with 237 stores and 2,461,360 square feet in operation. During the fourth quarter, the Company opened 11 new stores and remodeled 3 stores and plans to open an additional new store in January. The Company plans to end the year with approximately 249 locations, increasing square footage by 28% to approximately 2,589,794 square feet.

Conference Call Information

A conference call to discuss third quarter results is scheduled for today December 11, 2007 at 9:00 AM Eastern Time. Investors and analysts interested in participating in the call are invited to dial (888) 802-8577 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.ulta.com and remain available for 90 days. A replay of this call will be available until midnight (ET) on December 18, 2007 and can be accessed by dialing (877) 519-4471 and entering code 9488800.

About ULTA

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 21,000 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. The Company currently operates 237 retail stores across 30 states and also distributes its products through the Company's website: www.ulta.com.

[fireopal]

:rotfl: i forgot about this one so did you get in the 'purely girl stock' bad??

[BadThad]

i forgot about this one so did you get in the 'purely girl stock' bad??

Not yet, just watching for the bottom. For 2 days in a row it's slid, it's down close to 20% now! :o IMO, this will be a monster bottom play, the company is kicking a$$ and next year looks even better.

[fireopal]

ok will definitely not forget to check it out and will put it up on watch list so thanks for heads up for this 'purley girl stock' lol.. although rev is another one but spread on that isn't the greatest right now and haven't been liking the way it has been moving lately...

[Theboundbook]

Funny how the more the volume the more it has dropped this month. 2 days ago on that 24% drop seemed to be one of their highest declines in value.

I set an alert if it goes down to 16.... Then, if that happens I will be watching it every 10 min or so to see what happens... (panic in the holders or stock holders buying more figuring this is the bottom) I think you might be on to something, very similar to MWY when it hit 2.00 earlier this month and now has gone to 3.94, one of my greast bottom plays to date for me.

[BadThad]

Down another 7% so far today to $18.16. Where's that bottom?!

[BadThad]

Just some facts on this stock:

10DEC2007: $28.05 open
13DEC2007: $18.50 current

Almost $10 PPS drop! 8-|

[BadThad]

We may have finally found the bottom, seems to be holding around $18.50ish. I think I'll seriously look for an entry tomorrow, let's see if the bear is done with the market yet.

[BadThad]

Looks like the bear is going to take this down a couple more notches today.....IMO, it's shaping up for a MONSTER buy. If we can find the bottom, we can make some serious green, but it's going to probably take a pretty long hold......i.e. next earnings report to come to fruition. I'm seeing $$$ in my eyes on this puppy. :)

[BadThad]

Surprize, shot down this morning and then rising steadily, currently 0.2% above yesterday's close. I'm still waiting because EOD can have some unpleasant surprizes.....but the bottom might have arrived.

[fireopal]

have it on watch and looks like support is $17.50 or so... hope you are right and indicators seem to say you may be but i thought rch was gonna come down more .. HA! haven't gotten to dd yet (plan to try this weekend in between other work) so do you know what brought this one down?

[BadThad]

Overreaction by the initial investors over earnings report. I don't believe a drop that large was warranted....this is a strong company.

Shares of Ulta Salon, Cosmetics & Fragrance Inc., the Romeoville-based owner of retail-beauty salon stores, fell the most Tuesday since its October initial public offering after citing a "difficult environment" going into the end of the fiscal year.

"As we enter the fourth quarter, we realize that we are operating in a very difficult environment," Chief Executive Lyn Kirby said. "However, we believe we are well-positioned." She said marketing efforts are "going deeper" into the company's list of loyal customers.

Ulta Salon stock plunged $6.59, or 24 percent, to $20.91, on the Nasdaq stock market.




The firm posted a 16 percent gain in third-quarter net income, to $4.21 million, or 5 cents a share, up from $3.62 million a year ago. Sales rose 25 percent, to $208.2 million.

"What people are concerned about is, 'Gosh, are they slipping, do they have to be more promotional?'" said Dan Hofkin, an analyst at William Blair & Co. in Chicago.

[BadThad]

Surprize, shot down this morning and then rising steadily, currently 0.2% above yesterday's close. I'm still waiting because EOD can have some unpleasant surprizes.....but the bottom might have arrived.

Sure enough, making a move down again.....come on bottom! I got cash burning a hole in my pocket! :D

[fireopal]

thanks bad and i saw what they said about last drop but also saw that they were around $35 and was wondering about that drop BUT will find out when i get to dd lol

[Klipper22]

Looks like the bear is going to take this down a couple more notches today.....IMO, it's shaping up for a MONSTER buy. If we can find the bottom, we can make some serious green, but it's going to probably take a pretty long hold......i.e. next earnings report to come to fruition. I'm seeing $$$ in my eyes on this puppy. :)

I have been watching this every day also. Caught my eye on big drop day (Tues). Short term chart ready to pop. I think this is one to keep a close eye on for entry on Monday.

[BadThad]

Looks to be holding quite well today. Looking at the past 5 days, the bottom seems to be here. The bear is ruling the day today, I'm going to just keep watching for now as this could still slip even slightly more.

[BadThad]

Currently at 17.75......oooooo....sooooo tempting me!

[BadThad]

Put in an order to buy at 17.50 this morning and it hit while I was at lunch. Let's see where this goes! :)

[BadThad]

Holding steady at 18.00 on light volume, I think this might just be the bottom I was looking for. Sure looks like the sell-off is over based on the volume, I would have expected another huge down day today if it wasn't.....especially considering the bear market.

[BadThad]

Somebody's mad they lost money, LOL:

PHILADELPHIA, Dec. 18, 2007 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. has commenced a class action lawsuit in the United States District Court, Northern District of Illinois, Civil Action No. 07 C 7083, on behalf of purchasers of the common stock of Ulta Salon, Cosmetics & Fragrances, Inc. ("ULTA") (Nasdaq:ULTA) between October 25, 2007 and December 10, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Act of 1933. The action is pending before the Honorable Judge Gettleman.

If you wish to serve as lead plaintiff, you must move the Court no later than January 22, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges ULTA and three of its officers with violations of the Federal Securities Laws. ULTA operates retail stores that sell cosmetics and related items. ULTA went public on October 25, 2007 ("IPO"), just nine days prior to the close of its fiscal third quarter on November 3, 2007 ("Third Quarter"). As alleged in the complaint, defendants issued materially false and misleading statements in connection with the IPO concerning ULTA's financial condition and the levels of its selling, general and administrative expenses inventories. On December 11, 2007, ULTA issued a press release disclosing the results of its Third Quarter, admitting that its inventories and SG&A expenses had risen dramatically in the Third Quarter. As a result of this startling disclosure, the price of ULTA common stock, which had been inflated by defendants' misrepresentations, declined in value.

Plaintiff seeks to recover damages on behalf of all those who purchased the common stock of ULTA (Nasdaq:ULTA) between October 25, 2007 and December 10, 2007. Plaintiff is represented by Law Offices Bernard M. Gross P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,

Please Contact: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
Telephone: 866-561-3600 (toll free) or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com

CONTACT: Law Offices Bernard M. Gross, P.C.
866-561-3600

[BadThad]

Looks like investors didn't care about the lawsuit, PPS is up in this tough, bearish market. :D

[BadThad]

Dang, I'm out....hit my SL trigger. :-||

[Klipper22]

Just a matter of time and this is gonna bounce nicely.

[BadThad]

More lawsuits:

Brower Piven Announces the Filing of a Class Action Lawsuit Against Ulta Salon, Cosmetics & Fragrances, Inc.
3:30p ET December 26, 2007 (Market Wire)
Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of the common stock of Ulta Salon, Cosmetics & Fragrances, Inc. ("Ulta" or the "Company") (NASDAQ: ULTA) between October 25, 2007 and December 10, 2007, inclusive (the "Class Period").

The complaint alleges that during the Class Period the Company, and certain of its officers and/or directors, violated federal securities laws by issuing various materially false and misleading statements that had the effect of artificially inflating the market price of the Company's securities and causing Class members to overpay for the securities.

No class has yet been certified in the above action. If you are a member of the proposed Class, you may, no later than February 19, 2008, ask the Court to allow you to serve as lead plaintiff for the proposed Class. To serve as a lead plaintiff, you must satisfy certain legal requirements. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.

If you have suffered a net loss for all transactions in Ulta Salon, Cosmetics & Fragrances, Inc. securities during the Class Period (including shares or calls purchased during, but retained after, the Class Period or put options sold but not covered until after the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven (without obligation or cost to you) at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience in securities and class action litigation of over 40 years. If you choose to retain counsel, you may retain Brower Piven, or you may retain other counsel of your choice.

[BadThad]

New low set yesterday of $11.83. Some news from yesterday:

Ulta to Release Holiday Sales Results
6:19p ET January 7, 2008 (Business Wire)
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) today announced that it will issue a press release discussing its Holiday sales results on Thursday, January 10, 2008, before the market opens. The press release will also be posted to Ulta's Investor Relations web site at www.ulta.com.

[BadThad]

Up over 10% today on good news:

Ulta Announces Holiday Sales Results
7:00a ET January 10, 2008 (Business Wire)
Ulta Salon, Cosmetics & Fragrance, Inc. (the "Company") (NASDAQ: ULTA) today announced sales results for the six-week holiday period from November 18, 2007 to December 29, 2007. This time period corresponds with the Company's holiday marketing initiatives which represents the six full weeks beginning the week of Thanksgiving through the week of Christmas.

Total net sales for the six-week holiday period were $185.3 million, a 21.8% increase from the prior year holiday period of $152.1 million. Comparable store sales for the holiday period increased 4.6%, as compared to a 17.8% increase during the same period in the prior year.

Lyn Kirby, Ulta's President and Chief Executive Officer, stated: "We are pleased to be able to deliver to our expectations despite operating in one of the most challenging holiday seasons that we have experienced in many years. The strength of our concept within the retail and beauty space combined with our creative merchandising and marketing initiatives resulted in a successful holiday period for Ulta. Notably, our performance was equally solid in new and existing stores and markets, a strong testament to our ongoing ability to identify compelling locations while further expanding our comparable store sales. This performance is strong given the tough comparison of the prior year comparable store sales increase of 17.8%, resulting in a two year comparable store sales increase of 22.4%. We are also pleased with our margin results during the holiday period and our inventory levels coming out of the holiday season. Based on holiday sales results, we are reconfirming our 4th Quarter and Fiscal 2007 Guidance issued on December 11, 2007."

Outlook

The Company is reconfirming the guidance provided in its third quarter results press release on December 11, 2007. For the fourth quarter of fiscal 2007, the Company continues to expect net sales in the range of $304 million to $310 million, compared to actual fourth quarter fiscal 2006 net sales of $267 million inclusive of $16.4 million for the 53rd week. This net sales range reflects an increase of 21.3% to 23.7% for the same 13 week period in the prior year. Comparable store sales continue to be estimated to increase in the range of 4% to 6%, as compared to an actual comparable store sales increase of 15.7% in the same 13 week period in fiscal 2006. Income per diluted share continues to be estimated in the range of $0.22 to $0.24, compared to actual fourth quarter fiscal 2006 income per diluted share of $0.19.

For the full year fiscal 2007, the Company continues to expect net sales in the range of $907 million to $913 million, compared to actual fiscal 2006 net sales of $755.1 million inclusive of $16.4 million for the 53rd week. This net sales range reflects an increase of 22.8% to 23.6% for the same 52 week period in the prior year. Comparable store sales continue to be estimated to increase by 6.2% to 6.9%, as compared to an actual comparable store sales increase of 14.5% in fiscal 2006. Income per diluted share continues to be estimated in the range of $0.47 to $0.49, compared to actual fiscal 2006 income per diluted share of $0.45. The Company continues to expect to end the year with approximately 249 locations representing a 28% increase in square footage to approximately 2,589,794 square feet.

The Company's annual long term growth targets include: (i) comparable store sales increase in the mid single digit range; (ii) square footage expansion of 20% - 25%; and (iii) net income growth of 25% - 30%.

[Klipper22]

The bounce always comes. This one just certainly took patience. lol Thanks for the updates, BT.

[BadThad]

Earnings out soon. This puppy got KILLED today, down 14.16%! 8-| I may get back in for a bounce play, but the earnings scare me. I've seen a lot of good companies beat estimates and drop......crazy.

Ulta Announces Earnings Release Date, Conference Call and Webcast for Fourth Quarter and Fiscal Year 2007 Results
4:41p ET March 12, 2008 (Business Wire)
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), a beauty retailer with 249 retail stores, today announced that the Company will conduct a conference call to discuss fourth quarter and fiscal year 2007 results on Wednesday, March 19, 2008 at 5:00 p.m. Eastern Time. A press release detailing the Company's fourth quarter and fiscal year 2007 results will be issued after the market closes and prior to the call. The conference call will be hosted by Lyn Kirby, President and Chief Executive Officer and Gregg Bodnar, Chief Financial Officer.

Investors and analysts interested in participating in the call are invited to dial 877-407-0784 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at http://ir.ulta.com. A replay of the web-cast will remain available until June 19, 2008. A replay of the conference call will be available until midnight (ET) on March 26, 2008 and can be accessed by dialing 877-660-6853 and entering account number 3055 and conference ID number 277688.

[BadThad]

Latest earnings:

Ulta Announces First Quarter Fiscal Year 2008 Results
4:01p ET June 4, 2008 (Business Wire)
Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), today announced financial results for the thirteen-week period ("First Quarter") ended May 3, 2008, which compares to the first quarter ended May 5, 2007.

For the First Quarter:

-- Net sales increased 23.3% to $239.3 million from $194.1 million in the first quarter of fiscal 2007;

-- Comparable store sales (sales for stores open at least 14 months) increased 3.9%, compared to an increase of 9.2% in the first quarter of fiscal 2007;

-- Gross profit increased 24.2% to $73.9 million, or 30.9% of net sales, from $59.5 million, or 30.7% of net sales in the first quarter of fiscal 2007;

-- Operating income was $8.1 million and included incremental pre-opening expenses of $2.1 million, $1.1 million in advertising costs related to an additional marketing event, and $0.7 million, or $0.01 per share, of severance expense related to the previously announced management change. This compares to operating income of $9.9 million in the first quarter of fiscal 2007;

-- Net income was $4.3 million, compared to $5.3 million in the first quarter of fiscal 2007;

-- Income per diluted share was $0.07, including $0.01 per share of severance costs, and $0.08 per diluted share excluding the severance costs, compared to income per diluted share of $0.10 in the first quarter of fiscal 2007; the severance costs were not included in the Company's first quarter guidance; and

-- Adjusted income per diluted share was $0.07, including $0.01 of severance costs, compared to adjusted income per diluted share of $0.09 in the first quarter of fiscal 2007. Adjusted income per diluted share excludes the effects of preferred stock dividends and equalizes the dilutive effects of the preferred shares and IPO shares for the period. See Exhibit 3 for a complete description of adjusted income per basic and diluted share and reconciliation to the GAAP equivalents.

Lyn Kirby, Ulta's President and Chief Executive Officer, stated: "We continued our positive momentum from fourth quarter reporting strong first quarter results that included 23.3% net sales growth, 3.9% comparable store sales growth, increased gross profit margins and earnings at the top end of our guidance range. Our sales increase was well balanced with notable strength in both new and long established brands. During the period, we also opened a record number of new stores, which are performing to our new store model, and in support of our expansion, successfully began shipping from our second distribution center in Phoenix, Arizona. Our core strategies in product, marketing and store expansion are proving to be the correct consumer proposition in today's environment."

"As we look ahead, we recognize the economy remains difficult, yet we continue to be optimistic regarding our ability to deliver a strong year having prudently and appropriately planned sales and expenses. We have created a truly unique beauty superstore and consumers are responding favorably to our experience and value proposition, which is leading to consistent growth and exciting new opportunities."

Balance Sheet

Merchandise inventories at the end of the first quarter totaled $212.6 million, compared to $152.9 million last year, representing an increase of $59.7 million. $44.7 million of the increase is due to the addition of 62 net new stores opened since May 5, 2007, approximately $9.0 million represents incremental inventory related to our newly opened distribution center, and $6.0 million relates to inventory for 12 stores planned to open in the second quarter of 2008. Average inventory per store was flat compared to the prior year quarter after excluding the $9.0 million of incremental inventory related to the new distribution center.

Store Expansion

During the first quarter, the Company opened 17 stores, one each in Hoover, AL; Huntsville, AL; Tuscaloosa, AL; San Jose, CA; Destin, FL; Jacksonville, FL; Panama City Beach, FL; Noblesville, IN; Shreveport, LA; North Attleboro, MA; Baltimore, MD; Mooresville, NC; Las Vegas, NV; Myrtle Beach, SC; Rockwall, TX; and two in El Paso, TX. In addition, the Company closed 1 store in Mesa, AZ and remodeled 1 store in Merrillville, IN. The Company ended the first quarter with 265 stores and square footage of 2,750,247, which represents a 31.2% increase compared to the first quarter fiscal 2007.

Outlook

The Company is introducing second quarter guidance for fiscal 2008, which reflects the Company's current business trends and the current retail and economic environment. For the second quarter of fiscal 2008, the Company estimates net sales in the range of $248 million to $252 million, compared to actual second quarter fiscal 2007 net sales of $200.4 million. Comparable store sales are expected to increase in the range of 3% to 5%, compared to a 6.5% increase in the prior year quarter. Income per diluted share is estimated in the range of $0.04 to $0.05, which is impacted by expected additional pre-opening costs of $2.1 million, or $0.02 per diluted share, due to the increased number of store openings in the quarter, as compared to the prior year quarter. The Company plans to open approximately 18 new stores during the second quarter of fiscal 2008 compared to 8 stores in the second quarter of fiscal 2007.

The Company is reiterating full year guidance for fiscal 2008. For the full year fiscal 2008, the Company continues to estimate net sales in the range of $1.12 billion to $1.14 billion, compared to actual fiscal 2007 net sales of $912.1 million. Comparable store sales are expected to increase by 3% to 5%, compared to a 6.4% increase last year. Income per diluted share is estimated in the range of $0.52 to $0.57. The Company's full year guidance excludes the $0.01 per share severance expense. The Company expects to open approximately 63 new stores and remodel 8 stores in fiscal 2008. Capital expenditures for fiscal 2008 are expected to be in a range of $115 million to $120 million.

The Company's annual long term growth targets include: (i) comparable store sales increase in the 3% to 5% range; (ii) square footage expansion of 20% - 25%; and (iii) net income growth of 25% - 30%.

[BadThad]

The bear is munching everything up. ULTA is trading near it's low closing at only $10.49 today! 8-|

[BadThad]

Down 20% today (to $7.00) on lower guidance:

Ulta Announces Holiday Sales Results
7:00a ET January 8, 2009 (Business Wire)
Ulta Salon, Cosmetics & Fragrance, Inc. (the "Company") (NASDAQ: ULTA) today announced sales results for the seven-week holiday period from November 16, 2008 to January 3, 2009. This time period corresponds with the Company's holiday marketing initiatives and represents the seven full weeks beginning the week before Thanksgiving through the end of the week following Christmas.

Total net sales for the seven-week holiday period were $221.9 million, a 10.0% increase from the prior year holiday period of $201.7 million. Comparable store sales for the holiday period decreased 5.8%, as compared to a 4.6% increase during the same period in the prior year.

Lyn Kirby, Ulta's President and Chief Executive Officer, stated: "We were on track during the early weeks of the fourth quarter to deliver to our guidance, however, we experienced a significant drop in customer traffic in the 10 key selling days leading up to Christmas. We believe that the unprecedented level of discounting and promotion in the apparel category in the last days before Christmas resulted in consumers favoring apparel. Additionally, our customer traffic was negatively impacted by the unusually bad weather just prior to Christmas. In response to the unprecedented discounting, we implemented additional promotional activity in late December, but we determined that any further, more aggressive investment would not be productive and instead would negatively impact earnings. Given these circumstances, we continue to manage expenses and inventory and expect to end the year with inventory on a comparable store basis to be flat with prior year-end."

"So far, in the 13 days post-Christmas, our business has rebounded to solid positive comps which we believe is due to the consumable nature of our category, and that our value proposition and marketing strategies remain attractive to our customers given that we did not participate in the unprecedented discounting during the holiday season. However, we also believe it is prudent to continue to remain cautious given the economic environment and have revised our guidance accordingly," Ms. Kirby continued. "We are disappointed to reduce our fourth quarter guidance, but continue to believe in the strength of our long term strategy. We expect that our value proposition, marketing strategies, compelling brands and inviting in-store experience are clear advantages in a tough economy. We believe that this economic environment represents a time to win market share and we will continue to pursue this goal through maintaining our investments in our stores, brands, marketing and talent, always with a balanced eye toward return on investment. We have the financial flexibility to invest in market share strategies and square footage expansion and now is the time to utilize this strength to position us for greater growth as the economy stabilizes," Ms. Kirby concluded.

Outlook

Given the holiday sales performance, the Company is updating its fourth quarter and fiscal year 2008 guidance.

For the fourth quarter of fiscal 2008, the Company currently estimates net sales in the range of $339 million to $343 million, which compares to its previous fourth quarter net sales guidance in the range of $354 million to $368 million and versus actual fourth quarter fiscal 2007 net sales of $309.3 million. Comparable store sales are currently expected to be in the range of minus 6.0% to minus 5.0%, compared to its previous guidance of minus 2% to plus 2% and compared to an increase of 4.5% in the fourth quarter of fiscal 2007. Income per diluted share is currently estimated in the range of $0.18 to $0.19, as compared to its previous guidance for fourth quarter income per diluted share in the range of $0.24 to $0.28 and versus actual fourth quarter fiscal 2007 income per diluted share of $0.23.

For the full year fiscal 2008, the Company currently estimates net sales in the range of $1.082 billion to $1.086 billion, as compared to its previous guidance of net sales in the range of $1.1 billion to $1.11 billion and versus actual fiscal 2007 net sales of $912.1 million. Comparable store sales are currently expected to be flat to plus 0.4%, compared to a 6.4% increase last year. Income per diluted share is currently estimated in the range of $0.41 to $0.42, compared to its previous guidance for income per diluted share of $0.47 to $0.51. The Company's full year guidance excludes the $0.01 per share severance expense.

[BadThad]

Up 15% on earnings report:

Ulta Announces Second Quarter Fiscal Year 2009 Results
4:01p ET September 3, 2009 (Business Wire)
--Second Quarter Diluted EPS of $0.10

--First Six Months Generates $40.1 Million of Free Cash Flow

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA), today announced financial results for the thirteen-week period ("Second Quarter") and twenty-six-week period ("First Six Months") ended August 1, 2009, which compare to the same periods ended August 2, 2008.

For the Second Quarter:

-- Net sales increased 9.8% to $273.5 million from $249.1 million in the second quarter of fiscal 2008;

-- Comparable store sales (sales for stores open at least 14 months) decreased 1.7% compared to an increase of 3.7% in the second quarter of fiscal 2008;

-- Pre-opening expenses decreased $2.1 million to $2.0 million in the second quarter fiscal 2009 due to the planned decrease in the Company's new store program;

-- Operating income increased 42.0% to $10.2 million compared to $7.2 million in the second quarter of fiscal 2008;

-- Net income increased 55.9% to $5.8 million compared to $3.7 million in the second quarter of fiscal 2008;

-- Income per diluted share increased to $0.10, compared to $0.06 in the second quarter of fiscal 2008.

Lyn Kirby, Ulta's President and Chief Executive Officer, stated: "We are pleased to deliver second quarter results that surpassed our expectations including a sequential improvement in comparable store sales and earnings from the first quarter. We continued to execute on our strategies of dynamic marketing, strong value proposition, new store growth and new brand introductions to drive traffic and market share gains. These strategies delivered a 2.2% comparable store traffic increase for the quarter in an ongoing difficult consumer spending environment without incremental investment in marketing. Our expense and working capital management initiatives continued to gain momentum which helped generate second quarter earnings above our expectations and year-to-date free cash flow of $40 million.

"As we begin the second half of the year, the consumer environment remains difficult but appears to be more stable than earlier quarters," Ms Kirby continued. "We are confident in our positioning and will continue to focus on our core strategies and tactics to drive market share gains and make Ulta the preferred beauty shopping experience. In addition, as we continue to deliver on our working capital and cost management strategies, we believe we can drive improved profitability during the remainder of 2009. We also believe our strategies and initiatives will enable us to continue our success this year while positioning Ulta for sustained long term growth in sales and profits."

For the First Six Months:

-- Net sales increased 11.0% to $542.4 million from $488.4 million in the first six months of fiscal 2008;

-- Comparable store sales (sales for stores open at least 14 months) decreased 2.0% compared to an increase of 3.8% in the first six months of fiscal 2008;

-- Pre-opening expenses decreased $4.6 million to $3.2 million in the first six months of fiscal 2009 due to the planned decrease in the Company's new store program;

-- Operating income increased to $19.2 million compared to $15.3 million in the first six months of fiscal 2008;

-- Net income increased to $10.7 million compared to $8.0 million in the first six months of fiscal 2008;

-- Income per diluted share increased to $0.18 compared to $0.13 in the first six months of fiscal 2008, which included $0.01 per share of severance costs for the management change in March 2008.

Balance Sheet and Cash Flow

Merchandise inventories at the end of the second quarter totaled $209.2 million, compared to $197.0 million at the end of second quarter fiscal 2008, representing an increase of $12.2 million due to the addition of 50 new stores opened since August 2, 2008. Average inventory per store decreased 9.8%.

For the first six months of fiscal 2009, the Company generated free cash flow of $40.1 million. Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment. A reconciliation of free cash flow, a non-GAAP measure, is included at Exhibit 5.

Store Expansion

During the second quarter, the Company opened 13 stores, 1 each in North Haven, CT; Jacksonville, FL; West Melbourne, FL; Canton, GA; Des Moines, IA; Fairview Hts. IL; Flowood, MS; Amherst, NY; Monroe, NY; Tulsa, OK; Wilkes-Barre, PA; Wichita Falls, TX; Short Pump, VA. The Company ended the second quarter with 333 stores and square footage of 3,469,448, which represents an 18% increase compared to the second quarter of fiscal 2008.

Outlook

For the third quarter of fiscal 2009, the Company currently expects net sales in the range of $270 million to $278 million, compared to actual net sales of $254.8 million in the third quarter of fiscal 2008. This assumes comparable stores sales decrease 1% to 4%, compared to an increase of 2.0% in the third quarter last year.

Income per diluted share for the third quarter of fiscal 2009 is estimated to be in the range of $0.08 to $0.11. This compares to income per diluted share for third quarter fiscal 2008 of $0.09.

For fiscal 2009, the Company plans to:

-- generate free cash flow of approximately $50 million, compared to a $35.7 million net cash out flow in fiscal 2008;

-- permanently reduce expenses by approximately $18 million including supply chain, store and other operating costs;

-- open approximately 35 new stores;

-- incur capital expenditures in a range of $72 million to $74 million, compared to $110.9 million in capital expenditures reported in fiscal 2008; and

-- reduce inventory by approximately 9% on an average per store basis by year end 2009.



Current Stock price $14.40

[BadThad]

Long lost thread! ULTA surges over 17% today!

Ulta Salon (NASDAQ: ULTA) opened at $25.13. So far today, the stock has hit a low of $24.30 and a high of $26.21. ULTA is now trading at $25.78, up $3.55 (15.97%). Over the last 52 weeks the stock has ranged from a low of $12.00 to a high of $26.75. Shares of ULTA are trading higher this morning after the company reported a second-quarter profit of $13.06 million, or 22 cents per share, on revenue of $321.8 million. Analysts had forecast a profit of 18 cents per share on revenue of $314.8 million. Technical indicators for the stock are bearish and S&P does not currently have a STARS rating for ULTA. If you are looking for a hedged play on ULTA the stock seems like it could be a candidate for a December out-of-the-money bull-put credit spread below the 22.50 range. [ABR-Seven Summits Strategic Investments NewsBite]

Current stock price: $26.22

[greencat]

ULTA setting up for a possible hoigher move. Holding recent gains very well.

ULTA Chart
http://www.profitspi.com/stock-chart-str.aspx?id=ULTA&ca=799124323