Ulta posted a strong second quarter, with net sales increasing by 8.9 per cent year-on-year to $3bn which was driven by a boost in comparable sales.
The beauty retailer’s comparable sales rose by 3.8 per cent compared to last year which was boosted by the acquisition of Space NK and positive retail activity at new stores.
Ulta’s gross profit rose by 8.7 per cent to $1.2bn, and the operating income surged by 10.1 per cent to $379.6m on a yearly basis.
The company’s diluted earnings per share went up by 13.3 per cent to $6.55 year-on-year. During the second quarter, the company’s selling, general, and administrative expenses grew by 8.2 per cent to $802.8m, which was mainly due to the acquisition of Space NK.
Ulta invested in expanding its retail footprint in the first quarter, with a $139.5m investment in capital expenditures to back new store openings, refurbishments, and technology improvements.
Following the strong second half, the company adjusted its outlook to a higher range, which reflects confidence in the retailer’s ability to drive profitable growth.
The business forecasted full-year net sales growth of between 6.7 per cent and 7.2 per cent compared to the previous guidance of 6 per cent to 7 per cent.
Additionally, Ulta expects comparable sales to be in the range of 3.2 per cent to 3.7 cent in comparison to the prior year’s forecast of 2.5 per cent to 3.5 per cent.
Kecia Steelman, president and CEO of Ulta Beauty said: “Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests.
“We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience.”
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