Ulta Beauty updates full-year guidance on another strong quarter

By

Benjamin Fitzgerald

Published
Dec 2, 2022

Ulta Beauty announced on Thursday revenues for the third quarter surged 17% to $2.3 billion, coinciding with double-digit comparable sales growth, which contributed to an earnings jump for the beauty retailer.

The Bolingbrook, Illinois-based company said comparable sales increased 14.6%, driven by a 10.7% increase in transactions and a 3.5% increase in average ticket.

The sales lifts meant net income increased 27.5% to $274.6 million, compared to $215.3 million in the third quarter of fiscal 2021.

Likewise total sales for the first nine months increased 18.3% to $7 billion. The company attributed the surge to a "favorable impact" from the resilience of the beauty category, retail price increases, the impact of new brands and product innovation, and the easing of Covid-19 restrictions.

Net income soared ​29.5% to $901.7 million, during the nine months.

“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,” said Dave Kimbell, chief executive officer.

“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.”

Following the stellar results, the company increased its full-year outlook. It now expects annual sales to fall between ​$9.95 billion to $10 billion, compared to prior forecast of $9.65 and $9.75 billion.