Tweet
After a weekend in Ft. Lauderdale, you get on a crowded airplane and the stinky food’s steamin and your heart starts dreamin of the moment it’s time to leave. Sometimes you just need a little pampering to stop the flow of oil. Some Bud Lites, Coronas, Rum and Cokes, Cabernet, Pinot Noir, 5 Hour energy drinks, Starbucks, Monte Cristos, Macanudos, Espressos with a twist, Eggplant Parm, New York Strip Steak, Belvidere Martinis and 10 hours of blackjack….. Oh the oil. OH THE OIL.
Sometimes you just need some big time R&R to recover from too much R&R.
Today I bought Ulta Salon (ULTA) at 52.59. I will sell it in 4 to 6 weeks at 60.58. Here’s why I like ULTA:
Look at this chart. This stock is running like the guy who just stole the TV from the Sears window.
Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. Ulta provides affordable indulgence to its customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. Ulta offers a unique combination of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools, as well as salon haircare products. Ulta also offers a full-service salon in all of its stores. The Company operates 389 retail stores across 40 states and also distributes its products through the Company’s website: www.ulta.com. What’s behind all this? Baby Boomers have quatloops and they want to look younger. These stores aren’t big but they pack a lot of punch. They average about 10,000 square feet, about the size of the typical drugstore.
Here are some actual reviews from store customers who give you a glimpse of why this company and its stock will continue to grow and grow.
· Love Jen, Allie and Jessie! I went to a fancy salon recommended by a friend for my "practice" wedding hair and make up. It was really expensive and I felt they did my hair and makeup the way THEY wanted - not the way I wanted. So I decided to try Ulta knowing it wasn't too pricey if it didn't work out. I LOVED what they did. My hair looked great. My makeup looked just the way I wanted it. They really LISTENED to ME and did what I want. Sadly, I suggest staying away from the guy in the makeup area, as the day of the wedding he got a bit too artistic on my mom (doing what he wanted the way the other salon did), but Jessie re-did what he did and all was great. She ended up doing all 6 girls' makeup in a couple of hours and everyone was so happy. PLUS!!! I forgot to mention: The updos were about $20 less than the other place and the make up - - you don't really have to pay extra - - you just have to commit that you'll buy (I think it was) $30 of makeup. ...but then you get to keep $30 of makeup! The other place charged me $50 and I didn't get to take anything home. Go Jen, Allie and Jessie!!!
· Sometimes a girl really needs a little pick me up. Feeling pretty is a must. I have been hitting up this Ulta lately in an attempt to avoid the department store cosmetic expense train.
AND you know what? I LIKE THE PLACE. You know me- I am commitment phobic. I would not say I am in love, for sure. But in like- you got it!
So... Ulta carries MY scent. Others may wear this one, but really, it is ME. Yup- it is one of the BULGARI line. Ulta is no cheaper than Nordstroms for the perfume or the lotion. They do not carry the bath gel. However, it is GREAT that they carry them- I bought them out of the lotion this week
A woman needs to have this stuff around- and in bulk!
I have also used this place to pick up more dry shampoo. YUP. I tried to prepare for a hospital stay and thought I would attempt to make my life easier. They had some pretty fab sales on shampoo and products- including the ROCKSTAR line. That stuff is amazing. While the clerks were not incredibly knowledgeable about the selection- they did point me to the ones that qualified for the sale. (YIPEE!)
The polish choices are pretty darn amazing. I love it! I have tried some new ones, and fallen in love. Yes, I am really not a waitress by OPI is a great color!! Tonights color of choice- Prince Charming by Orly.
For many department store brands- without the prices- and WITHOUT parking garage fees- head on over here.
Music is loud- and typically obnoxious- just a heads up!
· Ulta is kind of like the training bra of makeup stores - you've finally left Walgreens, but you're not quite ready to go hit up Nordstrom's Clinique counter. Unlike a training bra, you are allowed to come back even after you graduate to those DDs!
Not just strictly makeup, Ulta has a great selection of hair products (from Pantene to Salon brands), fragrances, and smelly lotions. I bought my Conair Infiniti hair dryer/straightener here and it changed my life. Woot!
Ulta has good prices, sales, coupons and "purchase "X" amount of this and get a free "Y" deals. Who doesn't need a slew of make-up at a $60 value for free?
· So, I had a job interview and since my hair has Alzheimer's, (It forgets what color it is, I keep having to remind it) I made a few phone calls because I really did want it done NOW -- I called Ulta, they were totally nice and I was able to make an appointment for the following day with Charles.
When I got there, I noticed his business card "hair colorist Extrordinare and he REALLY WAS! he examined my roots and mixed the color and VIOLA balance was restored! I was very happy with the results. Red is a tricky colour for some. I never colored my hair until it started turning grey on me -- so it's doubly difficult to find someone who not only can deal with color - but can also vary the mix so it's 'just right' for the roots! These geniuses are few and far between!
While I was there, I decided, "while in Rome....." I was in bad need of cosmetics, and needed something that was better than the crap I was getting at Walgreens and CVS. I asked a clerk about getting my makeup done -- and when she was finished with me -- yes, I bought everything she used on me! Go Bare Minerals!!
The service I got was outstanding, and they have nearly every fragrance sold out there too, if you want to pick that up while you're shopping
· Department store to corner store--Ulta doesn't discriminate. A huge variety of good girl gunk at prices that range from spluging to slumming. Lots of sales, and everything is cheaper than you'll get at the drug store (yeah, I know, it'll be hard to let go of the ambiance and charm of Walgreens..)
As has been mentioned, get on the mailing list for 3.50 or 20% off coupons. You can also get printable versions online (over and over and over. heh.) at http://Ulta.com--just type in your zip and look for 'other specials.'
Discounts make you sexxxxxxxxxy!
· Ulta was so awesome! The ladies who worked there were super nice and helpful, and truly helpful, not just trying to make you buy more sh%t that you don't need. They have plenty of Bare Minerals stuff which is nice and a large selection of Burts Bees products too (acai berry lip balm? duh im sold).
· I'm a big fan of Ulta! Their stores are always brightly lit, spacious, and clean. AND they have Bare Essentuals make-up here... it's the only place that I know besides mail order. I stock up on shampoo, pick up cute fun girly makeup for my teenage niece, and check out the clearance rack a couple of times a year. Steals, I tell ya!
If you get their club card, you'll get coupons every month... usually $3.50 off a $10 purchase. And you can qualify for bonuses... not that great... but free is good.
· I have loved Ulta since I started going to one in my suburban hometown. I can't leave there without spending at least $20. Lately, I have started to go to Salon Manager, Robin, to get my eyebrows waxed because you can get points for your beauty club card. She
The Beauty Club Card is great and you can get a free bottle of OPI/Essie nail polish if you spend enough money in a quarter (that's just one of the rewards--I usually grab a free Maybelline mascara).
Look out for $3.50 and 20% of your purchase in their sale ads. Watch their sales because you can get a really good deal on makeup--buy one get one free.
· Definately LOVE Ulta. I love that they have a great sale on liter bottles of salon shampoo and conditioner and the selection is phenominal. I love that they have every and any color of OPI nail polish and often have a freebie if you buy two...obviously I need two. I love that they sell Bare Escentuals and also love that the cosmetic lady actually knew what she was talking about even though she wore way too much makeup.
This love affair could go on and on....
ULTA has grown sales 92.7% since 2006 by selling its beauty products at appealing prices in low-cost strip centers. So what they have done is take the Macy’s out of Macy’s. They have fancy stuff in stores where their rent is cheap. This is a recipe for high margin…and if the customers keep coming in, who cares if their store is right next to a Laundromat?
During the fourth quarter, the Company opened 5 stores located in Albuquerque, NM; Aventura, FL; Manahawkin, NJ; Miami, FL; and Naples, FL. In addition, the Company relocated 1 store in Rockford, IL. The Company ended the fourth quarter with 389 stores and square footage of 4,094,808, which represents a 13% increase compared to the fourth quarter of fiscal 2009. For fiscal 2011, the Company plans to: open approximately 61 new stores expanding square footage by approximately 16%, remodel 17 stores and relocate 1 store. Whether you believe Ulta can get to 3,000 stores, the company's overall store count more than doubled between 2005 and 2009. Management clearly sees growth as a priority. What do you think will happen to this stock if the company gets to 3000 stores? You? Some?? Now??? Adding locations seems to be working. More importantly, gross margin is on the rise. Ulta's pricing power is at least partly responsible for net income growing so much faster than revenue.
Most recent earnings were as follows:
Revenue for the period was up 20% from last year to $474 million. Earnings also looked good, coming in at 49 cents, representing an increase of 41.2% from $0.34 in the fourth quarter of fiscal 2009. The good results were driven by strong same-store sales (stores opened at least 14 months), up 10.4% on the heels of a 6.2% increase last year. Profitability was also on the upswing, with gross margin increasing 110 basis points from last year to 33.1%.
For the Fiscal Year 2010:
Net sales increased 19.0% to $1,454.8 million from $1,222.8 million in fiscal 2009;
Comparable store sales (sales for stores open at least 14 months) increased 11.0% compared to an increase of 1.4% in fiscal 2009;
Operating income increased 74.4% to $118.9 million, or 8.2% of net sales, compared to $68.2 million, or 5.6% of net sales, in fiscal 2009;
Net income increased 80.5% to $71.0 million compared to $39.4 million in fiscal 2009;
Income per diluted share increased to $1.16, which includes $0.06 per share of non-recurring compensation charge. This compares to $0.66 in fiscal 2009.
Just follow the women into the salon to determine where you think earnings will be in 2011 and that’s what the ANAL-ysts must be doing, because every once in a while they get it right.
ANAL-ysts think that revenues and earnings for the next fiscal year will be $1.69 billion and $1.51 per share. $$$MR. MARKET$$$ has estimated revenues of $1.74 billion which will generate earnings of $1.48/share. Either way, the PE multiple will sustain itself as ULTA ramps up new stores. So the math works out as: $1.48 x PE of 46 = share price of 68.08 which is well past my sell target.
Chuck Rubin, President and Chief Executive Officer of Ulta stated: “We are very pleased to report better-than-expected fourth quarter sales and earnings representing an excellent finish to a very strong year for Ulta. Once again, we gained market share across all major product categories of our business driven by our ability to satisfy our guests’ wants and needs with compelling products, great values, exciting marketing and an inviting environment. Ulta has strengthened its position as a beauty destination and we expect to build upon this in 2011 and beyond.
The fourth quarter included a 19.5% increase in total sales driven by a 10.4% increase in comparable store sales; strong performance from our new stores and continued growth in e-commerce,” Mr. Rubin continued. “In addition, operating income growth of 43% was more than double the rate of sales growth as we delivered on our operating margin expansion strategies. The year was equally impressive and included a 19% increase in total sales, an 11% increase in comparable store sales and the opening of 47 new stores for a total of 389 Ulta locations at year end. Net income per share rose 75.8% to $1.16 from $0.66 last year. We continued to fund our growth through internally generated cash while maintaining a strong balance sheet and delivering $79.4 million in free cash flow for the year.”
“For 2011, we plan to build upon our strong foundation. Our priorities are to accelerate our store expansion with plans to open approximately 61 new stores, representing square footage growth of 16%. In addition, we plan to continue to expand our guest offering through new products, services and brands. We expect to leverage our successful loyalty program; broaden our marketing channels; and increase our focus on optimizing the significant opportunity for growth in ulta.com to both drive e-commerce revenue and to support a multi-channel sales strategy. As our first quarter guidance indicates, we are expecting a strong start to the year. We remain confident that our growth strategies along with the continued focused execution of our team will enable us to maintain our favorable performance in the current year and well into the future as we continue on our mission to grow to 1,000 Ulta locations and achieve annual net income growth of 25% to 30% over the next several years,” concluded Mr. Rubin.
Do you see that income growth number??? Amazing. What else can I say, other than ULTA, and its stock, is a thing of beauty.
I am HUGE!
$$$MR. MARKET$$$
Sometimes you just need some big time R&R to recover from too much R&R.
Today I bought Ulta Salon (ULTA) at 52.59. I will sell it in 4 to 6 weeks at 60.58. Here’s why I like ULTA:
Look at this chart. This stock is running like the guy who just stole the TV from the Sears window.
Ulta is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. Ulta provides affordable indulgence to its customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. Ulta offers a unique combination of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools, as well as salon haircare products. Ulta also offers a full-service salon in all of its stores. The Company operates 389 retail stores across 40 states and also distributes its products through the Company’s website: www.ulta.com. What’s behind all this? Baby Boomers have quatloops and they want to look younger. These stores aren’t big but they pack a lot of punch. They average about 10,000 square feet, about the size of the typical drugstore.
Here are some actual reviews from store customers who give you a glimpse of why this company and its stock will continue to grow and grow.
· Love Jen, Allie and Jessie! I went to a fancy salon recommended by a friend for my "practice" wedding hair and make up. It was really expensive and I felt they did my hair and makeup the way THEY wanted - not the way I wanted. So I decided to try Ulta knowing it wasn't too pricey if it didn't work out. I LOVED what they did. My hair looked great. My makeup looked just the way I wanted it. They really LISTENED to ME and did what I want. Sadly, I suggest staying away from the guy in the makeup area, as the day of the wedding he got a bit too artistic on my mom (doing what he wanted the way the other salon did), but Jessie re-did what he did and all was great. She ended up doing all 6 girls' makeup in a couple of hours and everyone was so happy. PLUS!!! I forgot to mention: The updos were about $20 less than the other place and the make up - - you don't really have to pay extra - - you just have to commit that you'll buy (I think it was) $30 of makeup. ...but then you get to keep $30 of makeup! The other place charged me $50 and I didn't get to take anything home. Go Jen, Allie and Jessie!!!
· Sometimes a girl really needs a little pick me up. Feeling pretty is a must. I have been hitting up this Ulta lately in an attempt to avoid the department store cosmetic expense train.
AND you know what? I LIKE THE PLACE. You know me- I am commitment phobic. I would not say I am in love, for sure. But in like- you got it!
So... Ulta carries MY scent. Others may wear this one, but really, it is ME. Yup- it is one of the BULGARI line. Ulta is no cheaper than Nordstroms for the perfume or the lotion. They do not carry the bath gel. However, it is GREAT that they carry them- I bought them out of the lotion this week
A woman needs to have this stuff around- and in bulk! I have also used this place to pick up more dry shampoo. YUP. I tried to prepare for a hospital stay and thought I would attempt to make my life easier. They had some pretty fab sales on shampoo and products- including the ROCKSTAR line. That stuff is amazing. While the clerks were not incredibly knowledgeable about the selection- they did point me to the ones that qualified for the sale. (YIPEE!)
The polish choices are pretty darn amazing. I love it! I have tried some new ones, and fallen in love. Yes, I am really not a waitress by OPI is a great color!! Tonights color of choice- Prince Charming by Orly.
For many department store brands- without the prices- and WITHOUT parking garage fees- head on over here.
Music is loud- and typically obnoxious- just a heads up!
· Ulta is kind of like the training bra of makeup stores - you've finally left Walgreens, but you're not quite ready to go hit up Nordstrom's Clinique counter. Unlike a training bra, you are allowed to come back even after you graduate to those DDs!
Not just strictly makeup, Ulta has a great selection of hair products (from Pantene to Salon brands), fragrances, and smelly lotions. I bought my Conair Infiniti hair dryer/straightener here and it changed my life. Woot!
Ulta has good prices, sales, coupons and "purchase "X" amount of this and get a free "Y" deals. Who doesn't need a slew of make-up at a $60 value for free?
· So, I had a job interview and since my hair has Alzheimer's, (It forgets what color it is, I keep having to remind it) I made a few phone calls because I really did want it done NOW -- I called Ulta, they were totally nice and I was able to make an appointment for the following day with Charles.
When I got there, I noticed his business card "hair colorist Extrordinare and he REALLY WAS! he examined my roots and mixed the color and VIOLA balance was restored! I was very happy with the results. Red is a tricky colour for some. I never colored my hair until it started turning grey on me -- so it's doubly difficult to find someone who not only can deal with color - but can also vary the mix so it's 'just right' for the roots! These geniuses are few and far between!
While I was there, I decided, "while in Rome....." I was in bad need of cosmetics, and needed something that was better than the crap I was getting at Walgreens and CVS. I asked a clerk about getting my makeup done -- and when she was finished with me -- yes, I bought everything she used on me! Go Bare Minerals!!
The service I got was outstanding, and they have nearly every fragrance sold out there too, if you want to pick that up while you're shopping
· Department store to corner store--Ulta doesn't discriminate. A huge variety of good girl gunk at prices that range from spluging to slumming. Lots of sales, and everything is cheaper than you'll get at the drug store (yeah, I know, it'll be hard to let go of the ambiance and charm of Walgreens..)
As has been mentioned, get on the mailing list for 3.50 or 20% off coupons. You can also get printable versions online (over and over and over. heh.) at http://Ulta.com--just type in your zip and look for 'other specials.'
Discounts make you sexxxxxxxxxy!
· Ulta was so awesome! The ladies who worked there were super nice and helpful, and truly helpful, not just trying to make you buy more sh%t that you don't need. They have plenty of Bare Minerals stuff which is nice and a large selection of Burts Bees products too (acai berry lip balm? duh im sold).
· I'm a big fan of Ulta! Their stores are always brightly lit, spacious, and clean. AND they have Bare Essentuals make-up here... it's the only place that I know besides mail order. I stock up on shampoo, pick up cute fun girly makeup for my teenage niece, and check out the clearance rack a couple of times a year. Steals, I tell ya!
If you get their club card, you'll get coupons every month... usually $3.50 off a $10 purchase. And you can qualify for bonuses... not that great... but free is good.
· I have loved Ulta since I started going to one in my suburban hometown. I can't leave there without spending at least $20. Lately, I have started to go to Salon Manager, Robin, to get my eyebrows waxed because you can get points for your beauty club card. She
The Beauty Club Card is great and you can get a free bottle of OPI/Essie nail polish if you spend enough money in a quarter (that's just one of the rewards--I usually grab a free Maybelline mascara).
Look out for $3.50 and 20% of your purchase in their sale ads. Watch their sales because you can get a really good deal on makeup--buy one get one free.
· Definately LOVE Ulta. I love that they have a great sale on liter bottles of salon shampoo and conditioner and the selection is phenominal. I love that they have every and any color of OPI nail polish and often have a freebie if you buy two...obviously I need two. I love that they sell Bare Escentuals and also love that the cosmetic lady actually knew what she was talking about even though she wore way too much makeup.
This love affair could go on and on....
ULTA has grown sales 92.7% since 2006 by selling its beauty products at appealing prices in low-cost strip centers. So what they have done is take the Macy’s out of Macy’s. They have fancy stuff in stores where their rent is cheap. This is a recipe for high margin…and if the customers keep coming in, who cares if their store is right next to a Laundromat?
During the fourth quarter, the Company opened 5 stores located in Albuquerque, NM; Aventura, FL; Manahawkin, NJ; Miami, FL; and Naples, FL. In addition, the Company relocated 1 store in Rockford, IL. The Company ended the fourth quarter with 389 stores and square footage of 4,094,808, which represents a 13% increase compared to the fourth quarter of fiscal 2009. For fiscal 2011, the Company plans to: open approximately 61 new stores expanding square footage by approximately 16%, remodel 17 stores and relocate 1 store. Whether you believe Ulta can get to 3,000 stores, the company's overall store count more than doubled between 2005 and 2009. Management clearly sees growth as a priority. What do you think will happen to this stock if the company gets to 3000 stores? You? Some?? Now??? Adding locations seems to be working. More importantly, gross margin is on the rise. Ulta's pricing power is at least partly responsible for net income growing so much faster than revenue.
Most recent earnings were as follows:
Revenue for the period was up 20% from last year to $474 million. Earnings also looked good, coming in at 49 cents, representing an increase of 41.2% from $0.34 in the fourth quarter of fiscal 2009. The good results were driven by strong same-store sales (stores opened at least 14 months), up 10.4% on the heels of a 6.2% increase last year. Profitability was also on the upswing, with gross margin increasing 110 basis points from last year to 33.1%.
For the Fiscal Year 2010:
Net sales increased 19.0% to $1,454.8 million from $1,222.8 million in fiscal 2009;
Comparable store sales (sales for stores open at least 14 months) increased 11.0% compared to an increase of 1.4% in fiscal 2009;
Operating income increased 74.4% to $118.9 million, or 8.2% of net sales, compared to $68.2 million, or 5.6% of net sales, in fiscal 2009;
Net income increased 80.5% to $71.0 million compared to $39.4 million in fiscal 2009;
Income per diluted share increased to $1.16, which includes $0.06 per share of non-recurring compensation charge. This compares to $0.66 in fiscal 2009.
Just follow the women into the salon to determine where you think earnings will be in 2011 and that’s what the ANAL-ysts must be doing, because every once in a while they get it right.
ANAL-ysts think that revenues and earnings for the next fiscal year will be $1.69 billion and $1.51 per share. $$$MR. MARKET$$$ has estimated revenues of $1.74 billion which will generate earnings of $1.48/share. Either way, the PE multiple will sustain itself as ULTA ramps up new stores. So the math works out as: $1.48 x PE of 46 = share price of 68.08 which is well past my sell target.
Chuck Rubin, President and Chief Executive Officer of Ulta stated: “We are very pleased to report better-than-expected fourth quarter sales and earnings representing an excellent finish to a very strong year for Ulta. Once again, we gained market share across all major product categories of our business driven by our ability to satisfy our guests’ wants and needs with compelling products, great values, exciting marketing and an inviting environment. Ulta has strengthened its position as a beauty destination and we expect to build upon this in 2011 and beyond.
The fourth quarter included a 19.5% increase in total sales driven by a 10.4% increase in comparable store sales; strong performance from our new stores and continued growth in e-commerce,” Mr. Rubin continued. “In addition, operating income growth of 43% was more than double the rate of sales growth as we delivered on our operating margin expansion strategies. The year was equally impressive and included a 19% increase in total sales, an 11% increase in comparable store sales and the opening of 47 new stores for a total of 389 Ulta locations at year end. Net income per share rose 75.8% to $1.16 from $0.66 last year. We continued to fund our growth through internally generated cash while maintaining a strong balance sheet and delivering $79.4 million in free cash flow for the year.”
“For 2011, we plan to build upon our strong foundation. Our priorities are to accelerate our store expansion with plans to open approximately 61 new stores, representing square footage growth of 16%. In addition, we plan to continue to expand our guest offering through new products, services and brands. We expect to leverage our successful loyalty program; broaden our marketing channels; and increase our focus on optimizing the significant opportunity for growth in ulta.com to both drive e-commerce revenue and to support a multi-channel sales strategy. As our first quarter guidance indicates, we are expecting a strong start to the year. We remain confident that our growth strategies along with the continued focused execution of our team will enable us to maintain our favorable performance in the current year and well into the future as we continue on our mission to grow to 1,000 Ulta locations and achieve annual net income growth of 25% to 30% over the next several years,” concluded Mr. Rubin.
Do you see that income growth number??? Amazing. What else can I say, other than ULTA, and its stock, is a thing of beauty.
I am HUGE!
$$$MR. MARKET$$$
Comment