Ulta sales lifted by “resiliency” of beauty category

By

Robin Driver

Published
Dec 3, 2021

Bolingbrook, Illinois-based cosmetics retailer Ulta Beauty, Inc. revealed on Thursday that its net sales for the third quarter ended October 30, 2021, totaled $2.0 billion. This represented 28.6% growth from $1.6 billion in the same period in the previous year, progress which the company attributed to improved consumer confidence and a loosening of Covid-19 restrictions since Q3 2020.

 
Comparable sales in the period rose 25.8% year over year, reflecting a 16.8% rise in transactions and a 7.7% increase in average ticket. Compared to the third quarter of 2019, before the retailer suffered from the impact of the Covid-19 pandemic, comparable sales grew 14.3%.
 
Ulta’s quarterly net income totaled $215.3 million, or $3.94 per diluted share, compared to $74.8 million, or $1.32 per diluted share, in the prior-year period.

“For the third quarter, we delivered record sales and earnings, increased our market share, and expanded our Ultamate Rewards loyalty program to nearly 36 million members,” commented Ulta CEO Dave Kimbell in a release. “This strong third quarter performance reflects the strength and resiliency of the beauty category, the power of the Ulta Beauty differentiated model, and the impact of our winning culture and team.”
 
Year to date, Ulta’s net sales were $5.9 billion, up 49.3% from $4.0 billion in the same nine-month period in the previous year, while comparable sales rose 47.1%, driven by a 40.7% increase in transactions and a 4.6% rise in average ticket.
 
Net income for the first three quarters of the year was $696.5 million, or $12.60 per diluted share, compared to $4.3 million, or $0.08 per diluted share, in the prior-year period.
 
As a result of its positive performance in the third quarter, Ulta also announced that it is increasing its full-year financial guidance. The company now expects to report annual sales of between $8.5 billion and $8.6 billion, compared to a previous outlook of between $8.1 billion and $8.3 billion. Comparable sales are predicted to rise in the range of 36% to 37%, rather than 30% to 32%, as previously reported.
 
Finally, Ulta expects its full-year diluted EPS to total between $16.70 and $17.10, up from its previous guidance of between $14.50 and $14.70.
 
Having opened 42 new stores and closed four locations since the start of fiscal 2021, Ulta currently operates 1,302 stores across the United States.