Ulta Announces Q2 2010 Results (ULTA)

Ulta Salon, Cosmetics & Fragrance, Inc. ULTA, today announced financial results for the thirteen week period and twenty-six week period ended July 31, 2010, which compare to the same periods ended August 1, 2009. For the Second Quarter: Net sales increased 17.6% to $321.8 million from $273.5 million in the second quarter of fiscal 2009; Comparable store sales (sales for stores open at least 14 months) increased 10.8% compared to a decrease of 1.7% in the second quarter of fiscal 2009; Gross profit increased 350 basis points to 32.3% from 28.8% in the second quarter fiscal 2009; Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 40 basis points, excluding the impact of the non-recurring compensation charge, compared to the second quarter in fiscal 2009; including the impact of the non-recurring compensation charge, SG&A as a percentage of net sales increased 50 basis points; Operating income increased 117.4% to $22.3 million, or 6.9% of net sales, compared to $10.2 million, or 3.7% of net sales, in the second quarter of fiscal 2009; Net income increased 127.2% to $13.1 million compared to $5.8 million in the second quarter of fiscal 2009; Income per diluted share more than doubled to $0.22, including $0.03 per diluted share related to the non-recurring compensation charge. Income per diluted share was $0.25, excluding the non-recurring compensation charge. This compares to $0.10 in the second quarter of fiscal 2009.