=Ulta Beauty (ULTA) reported earnings on Thur 31 May 2018 (a/h)

Ulta Beauty beats by $0.22, beats on revs; guides Q2 EPS below consensus, revs below consensus; Reaffirms 2018 rev growth, raises EPS outlook 

• Reports Q1 (Apr) earnings of $2.70 per share, $0.22 better than the Capital IQ Consensus of $2.48; revenues rose 17.4% year/year to $1.54 bln vs the $1.52 bln Capital IQ Consensus.
  • Comparable sales increased 8.1% compared to an increase of 14.3% in the first quarter of fiscal 2017 (Guidance was for an increase in the range of 6-7%). The 8.1% comparable sales increase was driven by 5.1% transaction growth and 3.0% growth in average ticket
• Co issues downside guidance for Q2, sees EPS of $2.35-2.40, excluding non-recurring items, vs. $2.48 Capital IQ Consensus Estimate; sees Q2 revs of $1.475-1.488 bln vs. $1.49 bln Capital IQ Consensus Estimate.
  • Comparable sales for the second quarter of fiscal 2018, including e-commerce sales, are expected to increase 6% to 7%.
• FY18 Outlook:
  • Increase total sales in the low teens percentage range (Reaffirm);
  • Achieve comparable sales growth of approximately 6% to 8%, including the impact of e-commerce; grow e-commerce sales in the 40% range (Reaffirm);
  • Open approximately 100 new stores and execute 15 remodel or relocation projects (Prior 17);
  • Deleverage operating profit margin rate in the range of 50 to 70 basis points (Reaffirm);
  • Deliver GAAP earnings per share growth in the low twenties percentage range, compared to previous guidance of approximately 20% (Raise), including the impact of approximately $500 million in share repurchases and assuming a 24% effective tax rate;
  • Incur capital expenditures of $375 million in fiscal 2018, compared to fiscal 2017 capital expenditures of $441 million (Reaffirm)