Ulta Beauty Inc. reported the financial results of its fourth quarter after market closing on Thursday. The beauty retailer surpassed expectations for the current quarter, sending shares to a 9% high by Friday morning.
For the fourth quarter, Ulta reported profits of $ 3.61 per share based on total revenue of $ 2.12 Billion. Definitive analysts predicted earnings of $ 3.56 per share on base revenue of $ 2.11 Billion.
Additionally, Ulta reported that net sales have increased by 9.7% for this quarter, driven by a comparable sales increase of 9.4%. The comparable sales growth was propelled primarily by Ulta’s transactional growth of 7.1% and an average increase of 2.3% in tickets.
Comparable retail sales rose by 7.0%, including salon comparable sales growth of 6.2%, E-commerce sales increased significantly by 25.1%, showcasing 240 basis points of the Ulta’s total sales increase.
New brand products launched by celebrities including Kylie Jenner and YouTube sensation James Charles further increased customer traffic in beauty stores, helping Ulta surpass its quarterly estimates. In the present quarter, Ulta has launched an exclusive deal for Jenner’s makeup line. The coveted brand is valued at approximately $ 800 Million and has consistently increased patron inflow as well as investors for the company.
Mary Dillon, Chief Executive Officer, said, “The Ulta Beauty team delivered excellent results in the fourth quarter”. She also added, “This performance reflects acceleration in comparable sales in our retail stores, primarily driven by traffic. We continued to gain significant share across all major categories, particularly with digitally native brands where Ulta Beauty is often the only point of distribution in brick and mortar. Solid execution by our merchandising, store operations, e-commerce, marketing, supply chain, and systems teams drove healthy sales growth and a differentiated guest experience throughout the important holiday season.”
For the fiscal year 2019, Ulta intends to increase its total sales by a single-digit percentage stretch. Sales growth might also see comparisons from 6% to 7%, inclusive of e-commerce growth from 20% to 30%. The company also aims to deliver diluted profits per share ranging from $ 12.65 to $ 12.85.
Ulta profits have increased by a record high of 38.72% during the year so far.