Ulta Beauty posts Q2 sales growth, raises forecast

For the second quarter net sales at Ulta Beauty increased 10.1 percent to 2.5 billion dollars due to increased comparable sales, strong new store performance, and growth in other revenue.

Comparable sales increased 8 percent driven by a 9 percent increase in transactions and a 1 percent decrease in average ticket.

For the six months period net sales increased 11.2 percent to 5.2 billion dollars, while comparable sales increased 8.7 percent driven by a 10.1 percent increase in transactions and a 1.4 percent decrease in average ticket.

“The Ulta Beauty team delivered another quarter of strong performance, with sales, gross profit, and SG&A expenses all better than our internal expectations,” said Dave Kimbell, the company’s chief executive officer, adding, “Our proven business model, diverse assortment, best-in-class loyalty program, and outstanding teams have enabled us to deliver stronger-than expected results for the first half of fiscal 2023.”

Ulta Beauty raises FY23 forecast

Gross profit for the quarter increased 7.1 percent to 993.6 million dollars, while operating income increased to 391.6 million or 15.5 percent of net sales.

Net income for the quarter increased to 300.1 million dollars and diluted earnings per share increased 5.6 percent to 6.02 dollars.

Gross profit for the first six months increased 9.6 percent to 2 billion dollars, operating income increased to 833.7 million dollars or 16.1 percent of net sales and diluted earnings per share increased 7.5 percent to 12.90 dollars.

At the end of the second quarter, the company operated 1,362 stores.

For fiscal 2023, the company’s updated outlook anticipates net sales to be in the range of 11.05 billion to 11.15 billion dollars, comparable sales increase between 4.5 to 5.5 percent and diluted earnings per share to increase in the range of 25.10 to 25.60 dollars.