Ulta Salon Cosmetics & Fragrance (NASDAQ:ULTA), a cosmetic and fragrance company yesterday reported their first quarter 2016 financial results. Ulta Salon reported first quarter earnings of $1.45 per share which beat analyst expectations of $1.29 per share. Ulta Salon reported first quarter revenues increased 23.7% year over year to $1.07 billion which beat analyst expectations of $1.03 billion.
Ulta Salon, Cosmetics & Fragrance, Inc. CEO’s Comments
We are off to a phenomenal start to the year, delivering excellent top and bottom line growth in the first quarter,” said Mary Dillon, Chief Executive Officer. “Several positive factors are coming together to drive the momentum in our business, exemplified by the best comparable sales growth in our history as a public company. These include healthy consumer demand in the beauty category, our unique format and offering which are supporting sustained share gains, and effective collaboration across the enterprise to ensure strong execution of our growth strategies. Business Wire
ULTA Technical Analysis
ULTA opened trading yesterday at $214.00 which was up from the previous days trading of $211.48. ULTA closed trading yesterday at $213.69 and spiked up after market to $232.00, equivalent to a 9% increase from the closing price. Taking a look at the daily chart we can see that with this gap up we are in uncharted territory as ULTA is trading at all time highs. Taking a closer look at the daily chart we can see that ULTA has been on an overall upward trend dating back to February 19th when it traded at $150.07. ULTA has a float of 55.41 million shares and traded 1.45 times the normal daily trading volume on Thursday. For trading purposes, I would like to see ULTA open trading on Friday above $225.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $1.00 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Ulta Salon, Cosmetics & Fragrance, Inc. operates as a specialty retailer in the United States. Its stores provide cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. The company also offers cosmetics, which includes products for the face, eyes, cheeks, lips, nails, and brushes; haircare products, such as shampoos, conditioners, styling products, and hair accessories and brushes; and salon styling tools comprising hair dryers, curling irons, and flat irons. In addition, it provides skincare, and bath and body products consisting of products for face, hands, and body; fragrances; nail polish and nailcare products; and men’s skincare, haircare, and fragrance products. Further, the company offers private label products consisting of Ulta branded cosmetics, skincare, bath and body products, and haircare products; and other health and beauty products. As of January 30, 2016, it operated 874 retail stores in 48 states. The company’s full-service salon in its stores offers hair, skin, and brow services; and offers its products through its Website, ulta.com. Ulta Salon, Cosmetics & Fragrance, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.
By Jonathan G