Ulta Beauty's second-quarter earnings blew past estimates amid the resurgence of the beauty category.
Ulta’s net income rose to $250.9 billion, or $4.56 per share, in the quarter ended July 31, from $8.1 billion, or 14 cents per share, in the year-ago period. Analysts had expected earnings of $2.59 per share.
Revenue increased to $1.97 billion from $1.2 billion a year ago, topping the $1.76 expected by analysts. Same-store skyrocketed 56.3% compared to the year-ago period when the pandemic cut into shopper spending on beauty. Same-store sales were 13.6% higher than the second quarter of 2019.
Transactions increased 52.5%. The average ticket rose 2.5%.
“This performance reflects the recovery of the beauty category, investments and choices we’ve made over the last year to adapt to the market disruption and strengthen our leadership position, and the ongoing efforts of our associates to deliver great experiences for our guests,” said Dave Kimbell, who took the reins as Ulta CEO in June. “Our value proposition is strong, and we are evolving and innovating to lead in the new beauty landscape, capture additional market share, and drive profitable growth.”
In the second quarter, Ulta opened seven stores and relocated one existing location. In addition, the company remodeled five stores, and closed one location. In the first six months of fiscal 2021, the company opened 35 new stores, relocated two stores, remodeled five stores, and closed three locations. Ulta ended the quarter with 1,296 stores and square footage of 13.6 million, representing a 2.7% increase in square footage compared to the second quarter of fiscal 2020.