Ulta Salon (NASDAQ: ULTA) is a beauty retailer that operates specialty stores that focuses on selling cosmetics, fragrances, hair-care and skincare products. The stock has been a top performer among the retail group and is higher by more than 40 percent since the start of 2016, more than 60 percent over the past year and more than 300 percent over the past five years.
By comparison, the exchange traded fund that tracks the performance of a group of retailers, the SPDR S&P Retail (ETF) (NYSE: XRT) is trading nearly flat since the start of 2016, lower by around 5 percent over the past year and higher by just 80 percent over the past five year.
On Thursday the specialty retailer saw its stock gain more than 10 percent after provided an update to its guidance ahead of a company presentation to investors and analysts.
Ulta Salon said it expects to earn $1.35 to $1.38 in its third quarter which marks an increase from its prior guidance of $1.25 to $1.30 per share. The company also expects to see its comps rise by 14 to 15 percent in the quarter.
Looking ahead to the full fiscal year the company now expects to see comp growth of 12 to 14 percent, up from its prior guidance of 11 to 13 percent. In addition, management is guiding its earnings per share to grow in the low 20 percent range for fiscal 2017, 2018 and 2019.
Ulta Salon’s revised guidance through 2019 is also calling for seven to nine percent comp growth which also marks an improvement from its prior five to seven percent growth outlook.
“We look forward to sharing with the investment community our latest thinking on our strategic plan and opportunities to double our market share,” said Mary Dillon, Chief Executive Officer. “We are confident that executing against our strategic imperatives will continue to drive excellent financial results and create sustainable, long term shareholder value.”
During the company will also highlight how it plans on doubling its market share in the beauty segment over the next few years through store expansions and transforming its e-commerce segment to a billion dollar business. The company also has a strategy to improve store productivity and gain a higher share of wallet when consumers enter the store.