Ulta Beauty reported fourth-quarter earnings that easily beat analysts’ expectations.
The beauty giant will open approximately 75 net stores this year. It also plans to complete approximately 42 store refreshes.
Ulta’s net income increased 3.7% to $222.7 million in the period ended Feb.1, compared to $214.7 in the year-ago period. Earnings per share increased 7.8% to $3.89, which included a $0.06 per share benefit due to an increase in federal income tax credits. Analysts were expecting earnings per share of $3.72.
Net sales increased 8.5% to $2.30 billion, missing analysts’ estimates of $2.32 billion. Same-store sales increased 4.0%, driven by 1.8% transaction growth and 2.2% growth in average ticket.
“The Ulta Beauty team delivered results for the fourth quarter at the high end of our expectations, and I am proud of how our teams worked together to serve our guests this holiday season,” said Mary Dillon, CEO. “Our enhanced omnichannel capabilities, combined with our merchandise exclusives, cross-category marketing events, and great execution by our store teams, enabled us to expand our market share and deliver a successful quarter.”
For the full year, Ulta’s net sales increased 10.1% to $7.4 billion. Comparable sales increased 5.0%.
The company ended fiscal 2019 with 1,254 stores.
Ulta expects full-year earnings in the range of $12.55 to $12.75 per share.