Ulta Beauty bests expectations, sales up 17%

Ulta Beauty, Inc announced a solid start to 2018 on Thursday with first quarter results that beat Wall Street expectations.

The beauty retailer announced net sales of $1,543.7 million, up 17.4 percent for the quarter ended May 5, 2018, up from $1,314.9 billion the prior-year period.

Still, comparable sales lost some steam year-on-year with comparable sales up 8.1 percent compared to an increase of 14.3 percent in the first quarter of fiscal 2017.

Meanwhile, retail comparable sales increased 4.7 percent, including salon comparable sales growth of 3.2 percent.

E-commerce sales were also up 48 percent to hit $154.4 million, from $104.3 million in the first quarter of fiscal 2017. Ulta expects the segment to grow in sales in the range of 40 percent during fiscal 2018.

“This performance reflects our highly differentiated business model that continues to drive healthy retail comparable store sales, excellent new store productivity, and continued strength of our e-commerce business,” said Mary Dillon, chief executive officer, in a news statement.

Ulta’s net income increased 28.2 percent to $164.4 million, up from $128.2 million in the prior-year period. Earnings per diluted share were up 31.7 percent to $2.70.

During the quarter, the company opened 34 stores and closed one store. By the end of fiscal 2018, it plans to open approximately 100 new stores and execute 15 remodel or relocation projects.

The retailer raised its 2018 guidance and now expects to achieve comparable sales growth of approximately 6 to 8 percent.

For its second quarter, net sales are expected to be in the range of $1,475 million to $1,488 million, compared to actual net sales of $1,289.9 million in the second quarter of fiscal 2017.

Comparable sales, including e-commerce sales, are expected to increase 6 to 7 percent, while comparable sales will reportedly climb 11.7 percent.

Ulta Beauty bests expectations, sales up 17%

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