Written by Lorimer Wilson
Ulta Beauty, Inc. (NASDAQ:ULTA) today announced outstanding Q2 financial results and raised its previously announced fiscal 2017 guidance.
About Ulta Beauty
Ulta Beauty is the largest beauty retailer in the United States of cosmetics, fragrance, skin, hair care products and salon services. Since opening its first store in 1990, The Company offers more than 20,000 products from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label. Ulta Beauty also offers a full-service salon in every store featuring hair, skin and brow services.
Q2 2017 Financial Results vs. Q2 2016
Net sales: UP 20.6% to $1,289.9 million
Comparable sales (sales for stores open at least 14 months and e-commerce sales): UP 11.7% driven by 5.5% transaction growth and 6.2% growth in average ticket
- >Retail comparable sales: UP 8.3%, including salon comparable sales growth of 7.7%
Salon sales: UP 15.3% to $68.0 million
E-commerce sales: UP 72.3% to $96.3 million representing 340 basis points of the total company comparable sales increase of 11.7%;
Gross profit as a percentage of net sales: UP 40 basis points to 36.4% due to improvements in merchandise margins and leverage in fixed store costs
Selling, general and administrative (SG&A) expenses as a percentage of net sales: DOWN 10 basis points to 22.0% due to leverage in corporate overhead and variable store expenses attributed to cost efficiencies and higher sales volume, partially offset by investments in store labor to support our growth initiatives
Operating income: UP 25.1% to $179.8 million, or 14.0% of net sales
Net income: UP 26.9% to $114.2 million
Income per diluted share: UP 28.0% to $1.83
Share Repurchase Program
During the second quarter, the Company repurchased 462,421 shares of its stock at a cost of $126.5 million.
Year to date, the Company has repurchased 647,088 shares at a cost of $178.1 million.
As of July 29, 2017, $268.1 million remained available under the $425.0 million share repurchase program announced in March 2017.
