Ulta keeps shining as comps jump 15.2%

BOLINGBROOK, Ill. -- Ulta Beauty blew past expectations in the first quarter with a 15.2% increase in same store sales and a 38.8% e-commerce boost.

For the first quarter ended April 30, the beauty retailer posted an increase in net sales of 23.7% to $1,073.7 million from $868.1 million in the first quarter of fiscal 2015. Same store sales increased 15.2% compared to an increase of 11.4% in the first quarter of fiscal 2015. Salon sales increased 14.7% to $58.9 million from $51.3 million in the first quarter of fiscal 2015 and e-commerce sales grew 38.8% to $61 million from $44 million in the first quarter of fiscal 2015, representing 130 basis points of the total company comparable sales increase of 15.2%.

“We are off to a phenomenal start to the year, delivering excellent top and bottom line growth in the first quarter,” said Mary Dillon, CEO. “Several positive factors are coming together to drive the momentum in our business, exemplified by the best comparable sales growth in our history as a public company. These include healthy consumer demand in the beauty category, our unique format and offering which are supporting sustained share gains, and effective collaboration across the enterprise to ensure strong execution of our growth strategies.”

Gross profit at Ulta increased 150 basis points to 36.4% from 34.9% in the first quarter of fiscal 2015, and net income increased 37.4% to $92 million compared to $66.9 million in the first quarter of fiscal 2015.

During the first quarter, the company opened 13 stores and closed one store. The company ended the first quarter with 886 stores and square footage of 9,348,577 which represents an 11% increase in square footage compared to the first quarter of fiscal 2015.

For the second quarter of fiscal 2016, the company currently expects net sales in the range of $1,041 million to $1,058 million, compared to actual net sales of $877.0 million in the second quarter of fiscal 2015. Same store sales for the second quarter of 2016, including e-commerce sales, are expected to increase 11% to 13%. 

The company says it also expects to achieve same store sales growth of approximately 10% to 12%, including the impact of the e-commerce business, compared to previous guidance of 8% to 10%, as well as open 100 new stores.