Ulta Beauty put in a strong performance in Q3 2014 with total sales leaping up 20.5% to $745.7m from $618.8m.
Comparable sales increased 9.5% compared with an increase of 6.8% in Q3 of 2013. Store sales were driven by 5.4% growth in transactions and 4.1% growth in average ticket. Meanwhile, salon sales increased 20.5%, while comparable salon sales grew 10.1%. Diluted earnings per share grew a hefty 30% to $0.91.
Mary Dillon, Chief Executive Officer, said: “We are pleased to announce excellent sales and earnings growth in the third quarter. Strong same store sales were driven by a healthy balance of transaction and ticket growth. Continued strength in prestige and mass color cosmetics, the successful introduction of new products and brands, double-digit comps in our salon business, a more effective and well executed marketing strategy, and rapid growth in e-commerce all contributed to our performance.”
For Q4, Ulta predicts net sales in the range of $997m to $1,014m, compared to actual net sales of $868.1m in Q4 of 2013. In addition, the company raised its sales and earnings guidance, and plans to achieve comparable sales growth of approximately 8%-9%, including the impact of the e-commerce business. It also hopes to open 100 new stores, expanding square footage by approximately 15%, and remodel 12 locations. It aims to increase total sales in the 20% range.
During Q3, Ulta opened 50 stores located in a number of US states. It ended Q3 with 765 stores, representing a 15% increase in square footaged compared with Q3 2013.
