Ulta Beauty sales rise 22.8%
Growth was driven by strong new store performance and same store sales
US beauty retailer Ulta Beauty has achieved a 22.8% increase in net sales in the first quarter of 2012 compared to the same period in 2011, the company announced this week. The company said growth was driven by strong new store performance and double digit same store sales. Net sales for the quarter reached $474.1m compared to $386.0m in Q1 last year.
However, while comparable store sales (sales for stores open at least 14 months) rose 10.1%, the increase was less than last year’s rise of 11.1%.
Operating income increased 47.1% to $57.4m, or 12.1% of net sales, for the quarter compared to $39.1m, or 10.1% of net sales, for Q1 2011.
The company opened 18 new stores in the first quarter of 2012 and, as of 28 April 2012, had 467 retail stores across 44 states, a 19% increase in square footage compared to the first quarter of fiscal 2011. It also distributes its products online through the company’s website.
For the second quarter of fiscal 2012, the company expects net sales in the range of $466m to $473m compared to actual net sales of $394.6m in Q2 2011. It also plans to expand square footage by around 22% with the opening of approximately 100 new stores.
Ulta president and ceo Chuck Rubin said: “2012 is off to a great start. Our team delivered another quarter of excellent financial performance by continuing to execute our five point strategy of accelerating store growth, introducing our guests to new brands, products and services, enhancing our loyalty programme, broadening our marketing reach and increasing our focus on Ulta.com.”
Rubin said the company was confident about its long term targets for sales and earnings growth and announced that it had increased its store plan by 20% to 1,200 stores, up on its previous estimate of 1,000 stores.
“Finally, we will be adding new Lancôme boutiques to approximately 50 additional stores prior to this holiday season. This will bring our total Lancôme boutique count to 79,” he said.
“We will also be making additional investments in selected stores to improve our prestige offering and accommodate the future addition of other prestige brand boutiques. We believe both of these efforts will be exciting for our guests and reinforce Ulta’s positioning as the beauty authority.”
