Ulta Beauty continued its strong growth momentum in the third quarter, reporting an increase in net sales, comps and net income.
In the third quarter ended October 28, net sales increased 18.6% to $1.34 billion from $1.13 billion in the third quarter of 2016. Net income increased 19.5% to $104.6 million compared to $87.6 million in the third quarter of fiscal 2016.
Comparable sales increased 10.3% compared to an increase of 16.7% in the third quarter of fiscal 2016. The company estimated that Hurricanes Harvey and Irma resulted in approximately 100 basis points of negative impact to comparable stores sales in the third quarter.
Retail comparable sales increased 6.6%, including salon comparable sales growth of 3.8%. Salon sales increased 10.8% to $66.9 million from $60.4 million in the third quarter of fiscal 2016. E-commerce sales grew 62.9% to $119.8 million from $73.6 million in the previous third quarter.
“Our third quarter results clearly demonstrate the strength and distinct advantages of the Ulta Beauty business model. We delivered double-digit comparable sales growth, in spite of a moderation in the growth rate of our largest category, makeup, and meaningful disruption from hurricanes,” said Mary Dillon, chief executive officer, Ulta Beauty. “We flexed our merchandising and marketing plans, leveraged our consumer insights and CRM platform and worked with our brand partners to create compelling offers for our guests. We also benefitted from the unmatched breadth of beauty categories and products we offer. These levers allowed us to drive significant share gains, continue to rapidly grow our base of loyalty members and thrive amidst shifting category trends within the beauty industry.”