Ulta Beauty surpasses expectations in Q4
Ulta Beauty unveiled its financial results for its fourth quarter, which surpasses expectations.
The retailer reported a net sales increase of 8.5% to $2,305.9 million, compared to the $2,124.7 million from the same period a year ago.
Comparable sales for stores open at least 14 months and e-commerce sales increased by 4%, which was driven by a 1.8% transaction growth, compared to 9.4% from the same period in 2018.
Gross profit as a percentage of net sales increased by 36.2% compared to 35.9% in 2018, which was due to improvement in merchandise margins driven by marketing and other strategies, the company said.
In addition, Ulta Beauty opened 86 new stores and remodeled 12 locations in 2019, and its operating income increased by 5.5% to $901.1 million.
When it comes to 2020, the beauty retailer is looking to open approximately 75 new stores, remodel and/or relocate 15 projects and complete 42 store refreshes, the company said.
“The Ulta Beauty team delivered results for the fourth quarter at the high end of our expectations, and I am proud of how our teams worked together to serve our guests this holiday season,” Mary Dillon, CEO of Ulta Beauty said. “Our enhanced omnichannel capabilities, combined with our merchandise exclusives, cross-category marketing events, and great execution by our store teams, enabled us to expand our market share and deliver a successful quarter.”