Executive Summary

• Ulta reported 1Q17 adjusted EPS of $1.91, up 31.7% from the year-ago quarter and above the $1.80 consensus estimate. The company reported total revenue of $1.31 billion, above the $1.27 billion consensus estimate and up 22.5% from the year-ago quarter.
• Comparable sales increased by 14.3% year over year, driven by an 8.7% increase in transactions and 5.6% growth in average ticket. By business segment, retail comps increased by 10.9% and salon comps increased by 9.9%. The e-commerce business contributed 340 basis points to total comp.
• The company expects 2Q17 EPS of $1.72–$1.77 and total revenues of $1.26–$1.28 billion. Comps for the quarter are expected to increase by 10%–12%, versus 14.4% in 2Q16. The company also raised its FY17 guidance, and now expects EPS percentage growth in the mid-twenties versus a low-twenties range previously.