Ulta announces ambitious expansion plans amid soaring sales

Ulta announces ambitious expansion plans amid soaring sales

Ulta Beauty has reported a 21.1 percent rise in sales to US$1.268 billion for the fourth quarter of fiscal 2015. Comparable store sales climbed 12.5 percent and salon sales were up US$16.7 percent, while e-commerce sales soared 44.2 percent.

Net sales were up 21.1 percent for the full year, to US$3.924 billion, gross profit increased 20 basis points to 35.3 percent and net income was up 24.5 percent to US$320 million.

“Our fourth quarter results capped an exceptional year during which we made significant progress against our strategic imperatives, while achieving outstanding sales and earnings growth. We continue to benefit from the powerful combination of strong demand in the beauty category and Ulta Beauty’s highly differentiated offering that propels our business to transcend prevailing trends across the retail landscape,” said Mary Dillon, Chief Executive Officer. “Today we are pleased to announce an accelerated share repurchase plan that demonstrates our commitment to creating and returning value to shareholders.”

The company announced ambitious expansion plans for 2016 to expand square footage by 11 percent, equating to 100 new stores, bringing its total to almost 1,000 across the US – compared to Sephora’s 360 (845 including JC Penney concessions).

Ulta Beauty expects to achieve comparable sales growth of 8 to 10 percent and increased total sales in the mid to high teens percentage range.