Ulta Beauty won’t be giving up market share anytime soon, according to its recently released second-quarter 2017 financial results which, in part, credit its growth to consumers’ persistent demand for prestige products and its strong marketing strategy.
Highlights from Ulta’s second quarter include:
- 20.6 percent net sales increase to approximately $1,290 million
- 8.3 percent retail comparable sales increase; 7.7 percent salon comparable sales growth
- 15.3 percent salon sales increase to $68 million
- 72.3 percent e-commerce sales growth to $96.3 million
- 26.9 percent net income increased to $114.2 million
- 10.5 percent average growth in inventory per store (to support new stores, the new Dallas distribution center, and sales and expansion strategies)
And speaking of growth, 20 new stores were added into its fold from across the United States: California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Maryland, New Jersey, Ohio, Rhode Island and Washington, closing out Ulta’s second quarter with a total of 1,010 stores.
“We accelerated our market share gains while continuing to reduce promotional intensity and increase personalized offers through our industry leading loyalty program. Product category strength was broad based, with prestige cosmetics still driving the majority of our growth, and with skincare, fragrance, and hair care all gaining momentum. We are also benefitting from continued success of our marketing programs, rapid growth in e-commerce, and solid operational execution across the enterprise,” said Mary Dillon, Ulta Beauty chief executive officer.
In response to its second-quarter growth, the company has made some revisions for 2017. Among the adjustments, it intends to hit comparable sales growth of about 10 to 11 percent (including its e-commerce business); increase e-commerce sales in the 50 to 60 percent range; open about 100 new stores (and remodel and relocate others); achieve earnings per share in the high twenties percentage range; and spend about $460 million for fiscal 2017 (which includes $80 million to expand prestige brands).