Ulta Beauty Sales Surge In Q2

Ulta Beauty continued its growth momentum in the second quarter, with a surge in comps, net sales and income.

During the second quarter ended July 30, net sales increased 21.9% to $1.06 billion from $877 million in the second quarter of fiscal 2015. Comparable sales increased 14.4% compared to an increase of 10.1% in the second quarter of fiscal 2015. The increase was driven by 9.7% growth in transactions and 4.7% growth in average ticket. E-commerce sales grew 54.9% to $55.9 million from $36.1 million in the second quarter of fiscal 2015.

Net income increased 21.3% to $90 million compared to $74.2 million in the second quarter of fiscal 2015. Income per diluted share increased 24.3% to $1.43 compared to $1.15 in the second quarter of fiscal 2015.

“The Ulta Beauty team achieved another quarter of excellent top and bottom line performance, while making significant progress on many elements of our growth strategy,” said Mary Dillon, CEO, Ulta Beauty. “Our second quarter results reflect a strong pipeline of newness and innovation in merchandising, progress in growing our brand awareness, major milestones related to our loyalty program, continued rapid growth in our e-commerce business, and successful execution of our supply chain investments.”

Looking ahead, Ulta said it expects third quarter net sales in the range of $1.07 billion to $1.09 billion, and comparable sales to increase 11% to 13%. The company is also raising previously announced fiscal 2016 guidance, with plans to achieve comparable sales growth of approximately 11% to 13%, including the impact of the e-commerce business, compared to previous guidance of 10% to 12%.

During the second quarter, Ulta opened 24 stores and closed three, and currently operates 907 retail stores across 48 states.