Ulta Salon Cosmetics & Fragrance (ULTA) has reported a 23.21 percent rise in profit for the quarter ended Oct. 29, 2016. The company has earned $87.56 million, or $1.40 a share in the quarter, compared with $71.07 million, or $1.11 a share for the same period last year. Revenue during the quarter grew 24.22 percent to $1,131.23 million from $910.70 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 37.75 percent. Total expenses were 87.65 percent of quarterly revenues, down from 87.84 percent for the same period last year. This has led to an improvement of 18 basis points in operating margin to 12.35 percent.
Operating income for the quarter was $139.66 million, compared with $110.77 million in the previous year period.
"Ulta Beauty’s top line accelerated in the third quarter, driving record sales and earnings performance," said Mary Dillon, chief executive officer. "Our associates continue to execute against our growth strategies, resulting in success across several areas: new brand acquisition, increased Ulta Beauty brand awareness, rapid growth in our loyalty program, improving supply chain performance, and robust e-commerce growth."
For the fourth-quarter 2016, Ulta Salon Cosmetics & Fragrance expects revenue to be in the range of $1,516 million to $1,541 million. The company projects diluted earnings per share to be in the range of $2.08 to $2.13.
Operating cash flow improves significantly
Ulta Salon Cosmetics & Fragrance has generated cash of $323.02 million from operating activities during the nine month period, up 116.83 percent or $174.04 million, when compared with the last year period. The company has spent $261.20 million cash to meet investing activities during the nine month period as against cash outgo of $231.91 million in the last year period.
The company has spent $274.55 million cash to carry out financing activities during the nine month period as against cash outgo of $96.66 million in the last year period.
Cash and cash equivalents stood at $133.11 million as on Oct. 29, 2016, down 36.48 percent or $76.44 million from $209.55 million on Oct. 31, 2015.
Working capital decreases marginally
Ulta Salon Cosmetics & Fragrance has witnessed a decline in the working capital over the last year. It stood at $883.82 million as at Oct. 29, 2016, down 4.99 percent or $46.39 million from $930.21 million on Oct. 31, 2015. Current ratio was at 2.35 as on Oct. 29, 2016, down from 3.03 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 37 days for the quarter from 91 days for the last year period. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 73 days for the quarter compared with 126 days for the previous year period. At the same time, days payable outstanding went up to 41 days for the quarter from 40 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
