Ulta Beauty revenues soar on double-digit comps
Ulta Beauty Inc. announced on Thursday revenues for the second quarter ending July 30 skyrocketed by more than 16%, on the back of double-digit comparable sales growth across all major categories.
The Bolingbrook, Illinois-based company said net sales increased 16.8% to $2.3 billion compared to $2 billion in the second quarter of fiscal 2021, due to the favorable impact from the continued resilience of its beauty category, the impact of new brands and product innovation, and the easing of Covid-19 restrictions compared to the second quarter last year.
Likewise, comparable sales increased 14.4% compared to an increase of 56.3% in the second quarter of fiscal 2021, driven by an 8.3% increase in transactions and a 5.6% increase in average ticket.
The revenue hike saw a net income surge of 17.8% to $295.7 million during the second quarter, compared to $250.9 million last year.
For the six months ending July 30, Ulta recorded total sales of $4.6 billion, up 18.9%, while comparable sales increased 16.2%, driven by a 9.2% increase in transactions and a 6.4% increase in average ticket. First-half neet income increased 30.3% to $627.1 million compared to $481.2 million in the first six months of fiscal 2021, the beauty retailer added.
“Strong consumer demand and broad-based momentum across our business continued as our teams executed our plans with excellence,” said Dave Kimbell, chief executive officer. “For the quarter, we delivered double-digit comparable sales growth across all major categories and increased profitability, demonstrating the strength of our model and the commitment of our teams.”
"As we look to the second half of the year, we continue to operate in a dynamic environment, but I am confident that our unique model and one-of-a-kind assortment, paired with the strong emotional connection guests have to Beauty, position us well to continue to deliver profitable growth," added Kimbell.
Based on the results for the first six months of fiscal 2022 and sales trends experience to date in August, the company said it has increased its outlook for fiscal 2022. Ulta Beauty now expects full-year revenues to sit between $9.65 billion to $9.75 billion, from its prior forecast of 9.35 billion to $9.55 billion.
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