Ulta 2010 Annual Report Download - page 36

(1) Our fiscal year-end is the Saturday closest to January 31 based on a 52/53-week year. Each fiscal year
consists of four 13-week quarters, with an extra week added onto the fourth quarter every five or six
years.
(2) Fiscal 2006 was a 53-week operating year and the 53rd week represented approximately $16.4 million in
net sales.
(3) The Company made reclassifications in the consolidated income statements for the fiscal years ended
January 30, 2010 (fiscal 2009) and January 31, 2009 (fiscal 2008) to decrease cost of sales and increase
selling, general and administrative expenses by $3,520 and $3,773, respectively, to conform to the fiscal
2010 presentation. Amounts were insignificant for fiscal 2007 and 2006.
(4) Comparable store sales increase reflects sales for stores beginning on the first day of the 14th month of
operation. Remodeled stores are included in comparable store sales unless the store was closed for a
portion of the current or comparable prior year.
(5) Total square footage per store is calculated by dividing total square footage at end of year by number of
stores at end of year.
(6) Average total square footage represents a weighted average which reflects the effect of opening stores in
different months throughout the year.
(7) Net sales per average total square foot was calculated by dividing net sales for the year by the average
square footage for those stores open during each year. Fiscal 2006 net sales per average total square foot
were adjusted to exclude the net sales effect of the 53rd week.
(8) Total debt includes approximately $4.8 million related to the Series III preferred stock, which is presented
between the liabilities section and the equity section of our balance sheet for all years prior to February 2,
2008.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in
conjunction with our financial statements and related notes included elsewhere in this Annual Report on
Form 10-K. This discussion 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 Form 10-K 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; and other risk factors detailed in
our public filings with the Securities and Exchange Commission (the “SEC”), including risk factors contained
in Item 1A, “Risk Factors” of this Annual Report on Form 10-K for the year ended January 29, 2011. We
assume no obligation to update any forward-looking statements as a result of new information, future events
or developments. References in the following discussion to “we”, “us”, “our”, “the Company”, “Ulta” and
similar references mean Ulta Salon, Cosmetics & Fragrance, Inc. unless otherwise expressly stated or the
context otherwise requires.
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