June 4 (Reuters) - Ulta Salon, Cosmetics & Fragrance Inc (ULTA.O) posted better-than-expected quarterly results as traffic rose, and forecast second-quarter results in line with market estimates.

Ulta hair-care

Separately, the beauty products retailer said it reached a preliminary settlement in a class action lawsuit filed in December 2007, but did not disclose the terms of the settlement.

For the first quarter ended May 2, the company earned $4.9 million, or 8 cents a share, compared with $4.3 million, or 7 cents a share, a year earlier.

Sales rose 12.3 percent to $268.8 million.

Analysts were looking for earnings of 5 cents a share, before items, on revenue of $265 million, according to Reuters Estimates.

Ulta, which plans to open about 35 stores in fiscal 2009, said it sees earnings of 3 cents to 5 cents a share on sales of $264 million to $272 million in the second quarter.

Analysts on average were expecting earnings of 4 cents a share, before items, on revenue of $269.1 million.

The company forecast capital expenditures of $72 million to $74 million in 2009, down from $110.9 million a year earlier.

Shares of the Romeoville, Illinois-based company were trading at $9.87 after the bell. They closed at $9.60 Thursday 4 June on Nasdaq.

For related alerts double click (Reporting by Renju Jose in Bangalore; Editing by Deepak Kannan)