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Ulta plans to buy back up to $150M shares

BOLINGBROOK, Ill. (AP) -- Ulta Salon plans to buy back up to $150 million of its common stock, the company said Monday.

The buybacks will be funded from working capital, the company said.

On Thursday Ulta announced that it expects first-quarter earnings of between 60 and 63 cents per share on revenue in a range of $568 million to $577 million. That was far short of the 72 cents per share and revenue of $578.9 million that analysts had been looking for, according to a poll by FactSet.

For the full year, the Bolingbrook, Ill., company expects its earnings per share growth will come in at the low-end of its 25 percent to 30 percent long-term target. It attributed the numbers in its forecast partly to the cost of a number of projects slated for the year. Ulta plans to add more Clinique boutiques, upgrade its warehouse management systems and redesign its online business.

Shares of Ulta Salon, Cosmetics & Fragrance Inc. fell 14 cents to $74 in premarket trading on Monday.

Ulta reported last week that fourth-quarter profits rose nearly 40 percent on strong sales.