May 29, 2017
2 minutes
Ulta Beauty reports 40% profit increase, plans 100 more stores
May 29, 2017
Ulta Beauty reported on Thursday solid first quarter results including a 39.4 percent increase in net income. The beauty retailer saw net income jump to $128.2 million for the thirteen-week period ended April 29, 2017, compared to $92 million in the first quarter of fiscal 2016.
Net sales also increased 22.5 percent to $1,314.9 million, up from $1,073.7 million. Comparable store sales increased 14.3 percent primarily driven by 8.7 percent transaction growth and 5.6 percent growth in average ticket. Retail comparable sales increased 10.9 percent, including salon comparable sales growth of 9.9 percent.
Meanwhile, e-commerce sales grew 70.9 percent to $104.3 million from $61.0 million in the first quarter of fiscal 2016.
“The Ulta Beauty team kicked off 2017 with excellent performance in the first quarter,” said Mary Dillon, Chief Executive Officer, in a news statement. “Strong execution of our growth strategies delivered above plan sales and earnings growth. Our results reflect continued newness and innovation in merchandising, successful marketing programs, steady progress in our salon business and exceptional growth in e-commerce.”
While the retail sector is currently suffering, beauty specialists like Ulta Beauty and their competitor LVMH-owned, Sephora, are shining bright. In the last fiscal year, Sephora also recorded double-digit growth in both revenue and profits, and this year promises to be another strong one of growth.
Following a strong first quarter, Ulta Beauty currently expects net sales in the range of $1,257 million to $1,278 million for the second quarter of fiscal 2017, compared to net sales of $1,069.2 million recorded in the second quarter of fiscal 2016.
The company has also raised its fiscal 2017 guidance and now expects to achieve comparable
sales growth of roughly 9 to 11 percent.
Ulta Beauty also plans to open approximately 100 net new stores, remodel 11 locations, and relocate 6 other stores.
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