The stock gapped up in massive volume on March 11, the day after a better-than-expected quarterly earnings report. In the report, Ulta Beauty said profit for the fiscal fourth quarter that ended in January rose 24% on a 21% increase in revenue. Both figures were in line with the stock’s three-year earnings and sales growth rates.
In the March 10 earnings report, Ulta said sales at stores that have been open at least 14 months have jumped 12.5% due to rising transactions and an increase in average ticket—a measure of how much each customer spends per visit.
Profit for the fiscal year that ends in January is expected to rise 21% to $6.04 a share, followed by a 20% gain the nextyear. Both figures have been revised higher, a bullish sign.
ULTA is up 57% since it was recommended in Cabot Growth Investor in November 2014.