Ulta Beauty 2021 revenues lift 40% on better-than-expected fourth quarter

By

Benjamin Fitzgerald

Published
Mar 11, 2022

U.S retailer Ulta Beauty Inc. announced on Thursday a 40% surge in revenues for the full-year 2021, on the back of better-than-expected sales in the fourth quarter. 

The Bolingbrook, Illinois-based company said fourth-quarter 2021 revenues increased 24.1% to $2.7 billion, compared to $2.2 billion in the fourth quarter of fiscal 2020, due to a stronger consumer confidence and fewer Covid-19 restrictions, for the three months ending January 29, 2022.

Comparable sales increased 21.4%, compared to a decrease of 4.8% in the fourth quarter in the year prior, driven by a 10.4% increase in transactions and a 9.9% increase in average ticket. Compared to the fourth quarter of fiscal 2019, comparable sales increased 15.4%.

Net income increased to $289.4 million, compared to $171.5 million, while ​diluted earnings per share increased to $5.41, compared to $3.03, said the company in its earnings update.

​“Our fiscal year ended with better-than-expected performance, reflecting excellent, enterprise-wide execution against our fourth quarter plans as well as stronger consumer demand and the strength of Ulta Beauty’s differentiated model,” said Dave Kimbell, chief executive officer.

“I want to express my sincere appreciation to all Ulta Beauty associates who continue to provide exceptional care and service to our guests and to each other, while successfully navigating pandemic-related challenges and delivering strong results for all our stakeholders.”

Full-year 2021 sales surged ​40.3% to $8.6 billion, compared to $6.2 billion in fiscal 2020. Comparable sales increased 37.9%, compared to a decrease of 17.9% in the year prior, while net income for the year increased to $985.8 million, compared to $175.8 million.

The beauty retailer described the beauty industry as "healthy and growing", adding that "the recovery that began in 2021 will continue, as consumers maintain their self-care routines, become more resilient to Covid surges, and engage in more leisure and social activities."

"Our outlook for fiscal 2022 reflects our expectations for beauty growth as well as the challenge of lapping exceptional performance in fiscal 2021, ongoing wage and supply chain cost pressures, and investments in new capabilities to support future growth,” continued Kimbell.

“Despite the expected challenges, I am more excited than ever about the opportunity for Ulta Beauty to grow and continue to lead the Beauty category. We are emerging from the pandemic as a stronger, healthier business, we operate in an attractive and growing category, and we have an exceptional team in place to execute our ambitious plans and deliver for our guests, associates and shareholders.”