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Beauty is in the eye of the beholder.
Ulta Beauty (ULTA) reports earnings Thursday May 26th after the bell.
Ulta Beauty has beaten earnings the past 9 quarters.
After reporting earnings on March 10, 2016, Ulta Beauty gapped up 17% the next day.
After reporting earnings on December 3, 2015, Ulta Beauty gapped up 12% the next day.
Mary Dillon is one of the best CEOs in retail.
Ulta Beauty added 100 stores last year.
And it’s projected to add 100 stores this year.
Yesterday before the open, Oppenheimer raised their price target from $225 to $235 and maintained an “Outperform” rating on ULTA.
ULTA is not in the malls. They are in suburban areas.
Their average rent for square feet is $21.
Lower rent and larger stores compared to its peers in malls helps ULTA improve profit margins.
Their loyalty program, ULTAmate Rewards, encourages frequent shopping at ULTA . . . and helps pad the bottom line.
Last quarter ULTA reported an astonishing 12.5% same-store sales.
* 8.6% was growth in transactions
* 3.9% was from growth in average orders
Options are pricing in a 9% move after earnings.
Don’t be surprised if ULTA has another earnings beat.
How it trades after earnings will depend on expectations & guidance.
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