Ulta Salon posts strong outlook in Zacks research

Related tags Revenue Income

Ulta Salon Cosmetics and Fragrance posted its second-quarter adjusted earnings at 25 cents a share, up on the 19 cents predicted by anaylsts Zacks.

Quarter one income, at $5.8m or 10 cents per share, was blown away by reports of $13.1m or 22 cents per share in the second quarter, after one-time compensation.

The marked improvement in results for the cosmetics retailer has been attributed to market share strategies implemented in 2009, dynamic marketing and compelling brands.

Ulta management also mentioned the sluggish economic recovery played its part, and the enhancement was balanced across all major categories.

Total revenue surged by 17.6 percent year-over-year, which was driven by an increase in store sales (10.8 percent), aided by an increase in customer count (8 percent) and average ticket (2.8 percent).

Other companies highlighted in the Zacks Analyst blog were Abercrombie & Fitch, Aeropostale, Gap and Del Monte Foods

On the whole, US retailers have reported unexpectedly strong August sales numbers, and are generally looking forward to a solid third quarter.