Ulta Salon (NASDAQ: ULTA) reported Q4 EPS of $2.75, ex-tax benefit, versus the analyst estimate of $2.78. Revenue for the quarter came in at $1.94 billion versus the consensus estimate of $1.94 billion.

Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 8.8% compared to an increase of 16.6% in the fourth quarter of fiscal 2016. The 8.8% comparable sales increase .was driven by 6.2% transaction growth and 2.6% growth in average ticket.

Outlook

“Looking ahead to 2018, we are deploying a portion of the tax reform benefits to invest in our people and accelerate investments to drive growth and innovation,” said Mary Dillon. “We also recognize operating margin headwinds from various cost pressures facing all retailers, our higher than expected mix of e-commerce, and the new revenue recognition accounting standard. To help offset these pressures, we are implementing a cost optimization program to deliver benefits in the areas of indirect procurement, end-to-end operational efficiency, real estate costs, and merchandise margin improvement. We plan to increase operating profit margin rate over the long term, but this measure is expected to decline modestly in 2018. Going forward, rather than guiding to a precise operating margin target or timeline, we will instead ask our stakeholders to focus on how we create value through our very healthy earnings per share and margin dollar growth. We are confident that our plan allows us to continue delivering industry leading results, while making us a more competitive employer, enhancing the guest experience, and allowing us to invest in growth platforms to drive sustainable differentiation and the long-term success of the business.”

For earnings history and earnings-related data on Ulta Salon (ULTA) click here.