Ulta Beauty sees first billion dollar sales quarter in Q4
BOLINGBROOK, Ill. — Ulta Beauty closed out 2014 on a high note as it celebrated its first billion dollar sales quarter during the fourth quarter and generated double-digit gains in same-store sales.
“Ulta Beauty wrapped up a very strong year of sales and profit growth with an excellent fourth quarter, which we are proud to celebrate as our first billion dollar sales quarter,” stated CEO Mary Dillon. “Our best comparable sales increase of the year was driven by accelerating traffic growth, continued strength in prestige and mass color cosmetics, a successful holiday selling season, execution of more effective marketing and CRM strategies, a double-digit comp in our salon business, and a 55% comparable sales increase in our e-commerce business.”
Net sales for the quarter increased 20.7% to $1.05 billion from 868.1 million in the year-ago period. Same-store sales increased 11.1%, driven by 7.7% growth in transactions and 3.4% growth in average ticket. In addition, e-commerce sales grew 55.2%, representing 230 basis points of the total company same-store sales increase of 11.1%.
Net income increased 23.5% to $87.3 million, compared with $70.7 million in the fourth quarter of fiscal 2013.
For fiscal year 2014, net sales increased 21.4% to $3.2 billion.
Same-store sales increased 9.9%. In addition, e-commerce sales grew 56.4%, representing 180 basis points of the total company same-store sales increase of 9.9%.
For the year, net income increased 26.8% to $257.1 million, compared with $202.8 million in fiscal 2013.
In fiscal 2015, the company plans to:
Achieve comparable sales growth of approximately 6% to 8%, including the impact of the e-commerce business;
Increase total sales in the mid-teens percentage range;
Grow e-commerce sales in the 40% range;
Expand square footage by approximately 13% with the opening of 100 net new stores;
Remodel four locations;
Deliver earnings per share growth in the range of 15% to 17%, including planned supply chain and system investments, excluding the $0.02 non-recurring tax benefit in Q4 of 2014, and assuming continued share repurchases to offset dilution; and
Incur capital expenditures in the $300 million range in fiscal 2015, compared with $249 million in fiscal 2014.