Ulta Beauty Q1 sales surge 21%; raises outlook

Ulta Beauty reported strong results for its first quarter with better-than-expected sales and earnings growth, supported by double-digit comparable sales growth across all major categories.

On the beauty giant’s earnings call, CEO Dave Kimbell noted that store traffic trends were strong during the quarter as beauty services came back in full.

“In the first quarter, our services delivered double-digit growth,” he told analysts.

Ulta’s net income increased to $331.4 million, or earnings per share of $6.30, in the quarter ended April 30, compared to $230.3 million, or $4.10 per share, in the year-ago period. Analysts had projected earnings per share of $4.49.

Net sales surged 21.0% to $2.3 billion, also much better than analysts expected. Ultra attributed the increase to the “favorable impact of fewer Covid-19 restrictions” compared to the year-ago period. Comparable sales increased 18%, driven by a 10% increase in transactions and a 7.3% increase in average ticket.

“Solid execution of our strategies, paired with strong guest demand, fueled our financial performance and continued market share gains as we delighted our guests with exciting brand launches within our one-of-a-kind assortment and differentiated guest experiences,” stated Kimbell.

Ulta raised its outlook for the 2022 fiscal year. It now projects between 6% and 8% year-on-year sales growth, to between $9.35 billion and $9.55 billion. Its previous outlook ranged from $9.05 billion to $9.15 billion.

The company opened 10 stores during the quarter, giving it a total of 1,318 locations.