Ulta Salon posts 3Q profit growth of 19.3 percent

Wow this is actually suprising to me that Ulta would have profit growth in this economic climate. But then again it is surprising that anyone would have growth in this climate. Hopefully they can continue to grow and not have to lay off anybody, and hopefully create more Jobs.

Ulta Salon, Cosmetics & Fragrance Inc. said Thursday its fiscal third-quarter profit grew nearly 19.3 percent as sales rose about 22.4 percent.

But the company said it was reducing its outlook for the fiscal year amid the volatile economy.

The company said it earned $5 million, or 9 cents a share, in the three-month period through October. That was up from earnings of $4.2 million, or 5 cents a share, in the same period last year.

Revenue rose to $254.8 million from $208.2 million last year.

The earnings met the expectations of analysts who had predicted the company would earn 9 cents a share on revenue of $258.6 million, according to Thomson Reuters.

Ulta said same-store sales in the quarter rose 2 percent, slower than the 6.7 percent growth rate from last year. Same-store sales are a key metric for retailers because they measure growth at existing stores.

Lyn Kirby, Ulta's president and chief executive, said the company's third quarter shows the strong fundamentals of its business. She said the company is confident in its strategies and financial position in the current economic slump.

She said Ulta is pleased with the start to the holiday spending season, and if the pace is kept up, the company will deliver fourth-quarter comparable sales in line with the third quarter.

But she said given the volatility in the economy the company was reducing its full-year outlook and offered initial fourth-quarter guidance to give potential outcomes to investors.

Ulta operates 304 retail stores in 35 states.

Ulta's shares rose 61 cents, or 8.7 percent, to close at $7.60 on Thursday.