Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) announced the fourth quarter financial results on Thursday after market close. Shares of Ulta Salon jumped up 16.75% to $190.75 during Friday morning trading.
“Our fourth quarter results capped an exceptional year during which we made significant progress against our strategic imperatives, while achieving outstanding sales and earnings growth. We continue to benefit from the powerful combination of strong demand in the beauty category and Ulta’s highly differentiated offering that propels our business to transcend prevailing trends across the retail landscape,” said Mary Dillon, Chief Executive Officer. “Today we are pleased to announce an accelerated share repurchase plan that demonstrates our commitment to creating and returning value to shareholders.”
According to the fourth quarter financial results, net sales up 21.1% to $1,268.3 million compared with $1,047.6 in the same quarter last year. Operation income was $169.5 million which represented 23.3% increase from $137.5 million last year. Net income jumped up 23.6% to $107.8 million from last year $87.3 million. Diluted per share rose 25.2% to $1.69 compared with $1.35 in the same quarter last year.
For the year of 2016, Ulta Salon expected 8% to 10% sales growth at existing stores and predicted total sales would increase in the mid-to-high-teens percentage range. The company estimated the increase of diluted earnings per share range between 18% and 20% to approximately $5.93 per share which higher than the analysts’ expectation of $5.71.
Moreover, the board of Ulta Salon approved a new stock repurchase authorization of $425 million, start at March 15, 2016. The company also announced plans for an accelerated buyback with Goldman Sachs Group Inc. (NYSE: GS) to repurchase $200 million.