Ulta beats expectations with comparable sales up 21.4 percent

Ulta beats expectations with comparable sales up 21.4 percent

THE WHAT? Ulta has reported its results for the final quarter and full year of fiscal 2021. The US retailer saw net sales increase 24.1 percent to US$2.7 billion in the final three months of trading, which it attributed to stronger consumer confidence and fewer pandemic-related restrictions.

THE DETAILS Net sales for FY2021 soared 40.3 percent to US$8.6 billion. Gross profit increased to US$1 billion in Q4, compared to US$771 million in the same period in 2020 and hit US$3.4 billion for the full year, a considerable improvement on 2020’s US$1.9 billion.

Ulta Beauty said that it expects the beauty category to continue its recovery in 2022; it expects sales to increase 3 to 4 percent this year, and has scheduled in some 35 remodel and relocation projects and plans to open 50 new stores.

THE WHY? Dave Kimbell, Chief Executive Officer, commented, “Our fiscal year ended with better-than-expected performance, reflecting excellent, enterprise-wide execution against our fourth quarter plans as well as stronger consumer demand and the strength of Ulta Beauty’s differentiated model. I want to express my sincere appreciation to all Ulta Beauty associates who continue to provide exceptional care and service to our guests and to each other, while successfully navigating pandemic-related challenges and delivering strong results for all our stakeholders.”