Ulta Beauty posts solid Q1 results, looks to add Lancome boutiques

BOLINGBROOK, Ill. — Ulta Beauty is "off to a great start" as it posted a double-digit gain in first-quarter same-store sales and gears up for the addition of more Lancôme boutiques in its stores.

Same-store sales for the quarter rose 10.1% as net sales rose 22.8% to $474.1 million.

Net income totaled $34.9 million, up 49.7% from $23.3 million in the year-ago period. Income per diluted share rose 45.9% to 54 cents, compared with 37 cents in the year-ago period.

"2012 is off to a great start. Our team delivered another quarter of excellent financial performance by continuing to execute on our five point strategy of accelerating store growth, introducing our guests to new brands, products and services, enhancing our loyalty program, broadening our marketing reach and increasing our focus on Ulta.com," Ulta president and CEO Chuck Rubin said. "… Also, we are pleased to announce that we have completed an analysis of the long-term potential in the U.S. for our 10,000 sq.-ft. store model and have increased our store plan by 20% to 1,200 stores, compared to our previous estimate of 1,000 stores."

Rubin also stated that it will be adding new Lancôme boutiques to approximately 50 additional stores prior to this holiday selling season. This will bring its total Lancôme boutique count to about 79. It also will be making additional investments in selected stores to improve its prestige offering and accommodate the future addition of other prestige brand boutiques.