What recession? Ulta reports sales rise of 4.6 percent in Q3 2022

What recession? Ulta reports sales rise of 4.6 percent in Q3 2022

THE WHAT? Ulta Beauty has announced its results for the third quarter of fiscal 2022. The US retailer saw comparable sales increase 14.6 percent in the 13 weeks to October 29, 2022 compared to the same period in 2021 and increased its outlook for fiscal 2022 accordingly.

THE DETAILS Net sales rose 17.2 percent to US$2.3 billion, which Ulta attributed to the ‘favorable impact from the continued resilience of the beauty category, retail price increases, and the impact of new brands and product innovation compared to the third quarter of fiscal 2021.”

Gross profit soared 22 percent to US$962.8 million. The company has opened 18 new stores in the third quarter, relocated one and remodeled eight bringing its total to 1,343 stores spanning 14.1 million square feet.

Net sales are now expected to hit US$9.95 to US$10 billion for the year, an increase of 12.6 percent to 13.2 percent in comparable sales.

THE WHY? Dave Kimbell, Chief Executive Officer, commented, “Amidst a challenging macro environment, the Ulta Beauty team delivered yet another outstanding quarter, with strong top and bottom-line results and growth across all major categories and channels. Our third quarter results reflect the sustained resilience of the beauty category and the strong emotional connection and loyalty we have cultivated with our guests. I am confident our business model, which offers unmatched breadth, value, and convenience, is even more relevant today and unlocks opportunities to further delight guests as we continue to lead the beauty category.”

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