Ulta Beauty reports mixed earnings
Ulta Beauty Inc. reported Friday that its third quarter earnings are up despite the fact that its same-store sales were down over last year.
The Bolingbrook-based beauty giant said its net income increased 19.5 percent to $104.6 million, or $1.70 a share, in the quarter that ended Oct. 28, compared to $87.6 million, or $1.40 per share, in the year-ago period.
Net sales increased 18.6 percent to $1. 34 billion from $1.13 billion last year. The retailer estimated approximately $14 million in lost sales due to Hurricanes Harvey and Irma.
Total same-store sales increased 10.3 percent, compared to an increase of 16.7 percent last year, and were driven by 6.0 percent transaction growth and 4.3 percent growth in average ticket.
E-commerce sales grew 62.9 percent to $119.8 million from $73.6 million last year, representing 370 basis points of the total company comparable sales increase of 10.3 percent.
"Our third quarter results clearly demonstrate the strength and distinct advantages of the Ulta Beauty business model," said CEO Mary Dillon.
"We delivered double digit comparable sales growth, in spite of a moderation in the growth rate of our largest category - makeup - and meaningful disruption from hurricanes. We flexed our merchandising and marketing plans, leveraged our consumer insights and CRM platform, and worked with our brand partners to create compelling offers for our guests. We also benefitted from the unmatched breadth of beauty categories and products we offer. These levers allowed us to drive significant share gains, continue to rapidly grow our base of loyalty members, and thrive amidst shifting category trends within the beauty industry."