Exhibit 99.1
Company Contact:
Gregg Bodnar
Chief Financial Officer
(630) 410-4633
Investors/Media Contacts:
ICR, Inc.
Allison Malkin/Alecia Pulman
(203) 682-8225/(203) 682-8224
ULTA ANNOUNCES HOLIDAY SALES RESULTS
Holiday Comparable Store Sales Increase 9.5%
Two Year Holiday Comparable Store Sales Increase 17.4%
Increases Fourth Quarter Sales and Earnings Guidance
Bolingbrook, IL (January 6, 2011) Ulta Salon, Cosmetics & Fragrance, Inc. (the Company)
(NASDAQ: ULTA) today announced sales results for the seven-week holiday period from November 14,
2010 to January 1, 2011. This time period corresponds with the Companys holiday marketing
initiatives and represents the seven full weeks beginning the week before Thanksgiving through the
end of the week following Christmas.
Total net sales for the seven-week holiday period were $310.4 million, an 18.4% increase from
the prior year holiday period of $262.2 million. Comparable store sales for the 2010 holiday period
increased 9.5%, as compared to a 7.9% increase during the same period in the prior year. Over a
two year period, comparable store sales increased 17.4%.
Chuck Rubin, Ultas President and Chief Executive Officer, stated: We are pleased with our
holiday performance. Our strategy included exciting merchandising and marketing programs that
delivered new products and great values to our customers, all supported by a terrific shopping
environment.
Our sales strength was broad based across categories and was achieved primarily through higher traffic as well as slightly higher average ticket.
Based on our strong holiday results, we have raised our fourth quarter expectations
for sales and earnings.
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Outlook
Driven by favorable holiday sales, the Company is increasing its fourth quarter fiscal 2010
outlook provided in conjunction with its third quarter fiscal 2010 results on December 2, 2010.
The Company now expects fourth quarter fiscal 2010 net sales in the range of $463 million to
$467 million, as compared to its previous guidance of $447 million to $456 million. Fourth quarter
fiscal 2009 net sales were $396.4 million. Comparable store sales for the fourth quarter of fiscal
2010 are now expected to increase in a range of 8% to 9%, as compared to its previous expectation
of 4% to 6%. Fourth quarter fiscal 2009 comparable sales increased 6.2%. This updated sales
guidance results in a two year comparable store sales increase of 14.2% to 15.2%.
Income per diluted
share for the fourth quarter of fiscal 2010 is now estimated in the range of $0.43 to $0.44, including the
previously announced $0.01 per diluted share non-recurring
compensation charge. Adjusted income per diluted share, excluding the
charge, is
expected to be in a range of $0.44 to $0.45. The Companys
previous fourth quarter fiscal 2010 guidance for income per diluted share was $0.39 to $0.41, including the
$0.01 charge, and $0.40 to $0.42 per diluted share adjusted for the charge. Fourth quarter fiscal 2009 income
per diluted share was $0.34.
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About Ulta
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 currently
operates 389 retail stores across 39 states and also distributes its products through the Companys
website: wellnessformetoday.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934 and the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which reflect our current views with respect to, among other things,
future events and financial performance. You can identify these forward-looking statements by the
use of forward-looking words such as outlook, believes, expects, plans, estimates, or
other comparable words. Any forward-looking statements contained in this press release are based
upon our historical performance and on current plans, estimates and expectations. The inclusion of
this forward-looking information should not be regarded as a representation by us or any other
person that the future plans, estimates or expectations contemplated by us will be achieved. Such
forward-looking statements are subject to various risks and uncertainties, which include, without
limitation: the impact of weakness in the economy; changes in the overall level of consumer
spending; changes in the wholesale cost of our products; the possibility that we may be unable to
compete effectively in our highly competitive markets; the possibility that our continued opening
of new stores could strain our resources and have a material adverse effect on our business and
financial performance; the possibility that new store openings and existing locations may be
impacted by developer or co-tenant issues; the possibility that the capacity of our distribution
and order fulfillment infrastructure may not be adequate to support our recent growth and expected
future growth plans; the possibility of material disruptions to our information systems; weather
conditions that could negatively impact sales; the possibility that our business plan and
development strategy may be impacted by our recent leadership change; and other risk factors
detailed in our public filings with the Securities and Exchange Commission (the SEC), including
risk factors contained in our Annual Report on Form 10-K for the year ended January 30, 2010 and
our Quarterly Report on Form 10-Q for the quarterly period ended October 30, 2010. Our filings
with the SEC are available at www.sec.gov. The Company does not undertake to publicly update or
revise its forward-looking statements, whether as a result of new information, future events or
otherwise.
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