Ulta Beauty 4Q15 Results: Solid Beat on EPS, 2016 Outlook at or Above Consensus Estimates

Executive Summary

• Ulta Beauty reported 4Q15 revenues of $1.3 billion, up 21.1% year over year and ahead of the consensus estimate. EPS was $1.69, beating the consensus estimate by 15 cents.
• Comps increased by 12.5% year over year, following an increase of 11.1% in the year-ago quarter, based on 8.6% growth in transactions and a 3.9% increase in average ticket size.
• For 2016, the company expects sales growth in the mid-to-high teens based on 8%–10% comp growth, or revenue of $4.5–$4.7 billion. It expects 18%–20% EPS growth, which would result in EPS of $5.87–$5.97.