Ulta posts record-breaking Q2 sales as COVID restrictions lift

Ulta posts record-breaking Q2 sales as COVID restrictions lift

THE WHAT? Ulta Beauty saw sales surge 60.2 percent to US$2 billion compared in the second quarter of fiscal 2021, compared to the same period in 2020 due to the favorable impact from strong consumer confidence and fewer COVID-19 restrictions.

THE DETAILS Comparable sales were up 56.3 percent compared to a decrease of 26.7 percent in the year-ago quarter. Compared to the second quarter of fiscal 2019, comparable sales increased 13.1 percent, indicating the US beauty retailer has recovered from the pandemic.

Operating income increased to US$332.3 million, compared to US$12.8 million in the second quarter of fiscal 2020.

Based on the results for the first six months of the year, the company has revised its 2021 outlook, and now expects net sales of US$8.1 billion to US$8.3 billion (previously US$7.7 billion to US$7.8 billion).

THE WHY? Dave Kimbell, Chief Executive Officer, commented, “The Ulta Beauty team delivered strong results for the second quarter. This performance reflects the recovery of the beauty category, investments and choices we’ve made over the last year to adapt to the market disruption and strengthen our leadership position, and the ongoing efforts of our associates to deliver great experiences for our guests. Our value proposition is strong, and we are evolving and innovating to lead in the new beauty landscape, capture additional market share, and drive profitable growth.”