Ulta Beauty Rings Up Impressive Q1

Ulta Beauty rang up another impressive financial performance to start the year off strong, with first quarter growth across the board.

Net income in the first quarter ended May 5 increased 28.2% to $164.4 million compared to $128.2 million in the first quarter of fiscal 2017. Operating income increased 11.4% to $209.8 million, or 13.6% of net sales, compared to $188.4 million, or 14.3% of net sales, in the first quarter of fiscal 2017.

The company reported a net sales increase of 17.4% to $1.5 billion compared to $1.3 billion for the first quarter of the previous year.

Comparable sales increased 8.1% compared to an increase of 14.3% in the first quarter of fiscal 2017. The 8.1% comparable sales increase was driven by 5.1% transaction growth and 3% growth in average ticket.

Retail comparable sales increased 4.7%, including salon comparable sales growth of 3.2%. E-commerce sales increased 48% to $154.4 million from $104.3 million in the first quarter of fiscal 2017, representing 340 basis points of the total company comparable sales increase of 8.1%. Salon sales increased 10.1% to $75.7 million compared to $68.7 million in the first quarter of fiscal 2017.

“Our first quarter results represent a solid start to 2018, with better than expected sales and earnings growth,” said Mary Dillon, CEO, Ulta Beauty. “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.”