Ulta (ULTA) 4Q16 Results: Tops EPS and Revenue Estimates with Double-Digit Revenue Growth

Executive Summary

• Ulta reported 4Q16 EPS of $2.24, up 32.5% from the year-ago quarter and above the $2.14 consensus estimate. Revenues rose 24.6% from the year-ago quarter to $1.58 billion, also beating the consensus estimate of $1.54 billion.
• Comparable sales, including e-commerce, increased by6% from the year-ago quarter, versus the 13.8% consensus estimate and company guidance of 12%–14%. That growth was driven by a 10.9% gain in transaction volume and a 5.7% higher average ticket sale. Retail comp sales increased 12.8%, including salon comp growth of 8.8%.
• For FY17, Ulta projects EPS growth in the low 20% range, compared with the 25% consensus estimate, or EPS of $8.03. The company projects comps to be up 8%–10%, versus the 10% consensus estimate.