Ulta Beauty logs record-breaking first quarter

By

Benjamin Fitzgerald

Published
May 27, 2022

Ulta Beauty announced on Thursday record-breaking financial results for the first quarter, as the cosmetics company logged revenue and earnings surges, thanks to increased comparables sales fuelled by consumer demand.

The Bolingbrook, Illinois-based company said total revenues for the first quarter increased 21% to $2.3 billion, compared to $1.9 billion in the prior-year quarter. Ulta attributed the gains "to the favorable impact of fewer Covid-19 restrictions, compared to the first quarter of fiscal 2021."

As a result, comparable sales increased 18%, driven by a 10% increase in transactions and an 7.3% increase in average ticket.

Quarterly net income surged to $331.4 million, compared to $230.3 million, while diluted earnings per share increased to $6.30, compared to $4.10.

“The Ulta Beauty team delivered exceptional first quarter results, with better-than-expected sales and earnings growth, supported by double-digit comparable sales growth across all major categories,” said Dave Kimbell, chief executive officer.

“Solid execution of our strategies, paired with strong guest demand, fueled our financial performance and continued market share gains as we delighted our guests with exciting brand launches within our one-of-a-kind assortment and differentiated guest experiences.”

Coinciding with the results, Ulta increased its full year outlook. Looking ahead, the company now expects annual sales of ​$9.35 billion to $9.55 billion, with a comparable sales increase of 6% to 8%. Diluted earnings per share for the year are expected to sit between $19.10 and $20.10.