May 26, 2023
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Ulta Beauty sales climb 12.3% in Q1

May 26, 2023

Ulta Beauty announced on Thursday strong first-quarter revenue, thanks to increased comparables sales and strong store performance. 

Ulta Beauty sales climb 12.3% in Q1. - Ulta Beauty

The Bolingbrook, Illinois-based company said net sales for the quarter ended April 29 increased 12.3% to $2.6 billion, compared to $2.3 billion in the prior-year quarter.

As a result, comparable sales increased 9.3% compared to an increase of 18% in the first quarter of fiscal 2022, driven by an 11% increase in transactions partially offset by a 1.5% decrease in average ticket. 

Likewise, net income surged 4.7% to $347.1 million, compared to $331.4 million in the first quarter of fiscal 2022, while diluted earnings per share increased 9.2% to $6.88, compared to $6.30. 

During the quarter, Ulta opened five new stores located in Boulder, CO; Denton, TX; Seattle, WA; Surprise, AZ; and Warrensville Heights, OH. In addition, the company closed one store, relocated one store, and remodeled two stores, showcasing its commitment to brick-and-mortar. 

“The year is off to a positive start as the Ulta Beauty team delivered revenue, operating margin, and diluted EPS consistent with our internal expectations. Store traffic remained healthy, member growth showed continued strength, we delivered growth across key categories, and we strengthened engagement with the Ulta Beauty brand,” said Dave Kimbell, chief executive officer. 

“While we expect the operating environment to continue evolving, we remain confident in the resilience of the beauty category and in our ability to drive share and profitable growth with our proven business model, a diverse, best-in-class assortment, an industry-leading loyalty program, and our world-class team.”

Coinciding with the results, Ulta increased its full-year outlook. Looking ahead, the company now expects annual sales of  $11 billion to $11.1 billion, compared to $10.95 billion to $11.05 billion. The expected comparable sales increase remained the same at 4% to 5%.

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