Ulta Gains In Q4, Fiscal Year As E-Commerce Takes Off

For the fourth quarter ended January 30, Ulta Beauty posted net income of $107.8 million, or $1.69 per diluted share, versus $87.3 million, or $1.35 per diluted share, in the previous-year period. Comparable sales gained 12.5% versus the year-earlier quarter, driven by an 8.6% growth in transactions and 3.9% growth in average ticket, the company reported.

Ulta exceeded an analyst average estimate of $1.54 published by MarketBeat.

Net sales were $1.27 billion compared to $1.05 billion in last year's fourth quarter. Operating income was $169.5 million versus $137.5 million in the prior-year period, the company stated.

E-commerce sales increased 44.2% to $94.8 million, representing 210 basis points of the total company comp growth versus last year's quarter, the company noted.

For the full fiscal year, Ulta posted net income of $320 million, or $4.98 per diluted share, versus $257.1 million, or $3.98 per diluted share, in the previous year.  Comps advanced 11.8%, the company stated, driven by an 8.4% growth in transactions and 3.4% growth in average ticket.

Net sales were $3.92 billion compared to $3.24 billion in the year before. Operating income was $506.3 million versus $410.4 million in the prior year.

E-commerce sales increased 47.5% to $221.1 million, representing 180 basis points of the total company comp increase of 11.8%, the company maintained.

“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, CEO, Ulta.

For fiscal 2016, the company said it plans to open 100 new stores. Currently, Ulta operates 874 retail stores across 48 states.