08.25.23
Net sales in Q2 for Ulta Beauty increased from $2.3 billion to $2.5 compared with the prior-year quarter, a change of 8%, the company reported.
For the first six months of 2022, net sales for the retailer increased 11.2% to $5.2 billion compared to $4.6 billion. The change was driven primarily due to increased comparable sales, strong store performance and growth in other revenue.
Comparable sales increased 8.7% compared to an increase of 16.2% in the first six months of fiscal 2022, driven by a 10.1% increase in transactions and a 1.4% decrease in average ticket.
“The Ulta Beauty team delivered another quarter of strong performance, with sales, gross profit, and SG&A expenses all better than our internal expectations,” said Dave Kimbell, CEO. “During the quarter, we drove growth across all major categories, increased the number of loyalty members, and strengthened engagement with the Ulta Beauty brand. In addition, our teams achieved important milestones for our multi-year, transformational investment agenda designed to drive efficiencies and support our future growth.”
Kimbell added that the beauty category has continued to deliver healthy growth, as consumers maintain their post-pandemic routines and expand their definition of beauty.
Net interest income increased to $4.4 million compared to $0.1 million in the second quarter of fiscal 2022, due to higher average interest rates on cash balances.
The tax rate decreased to 24.2% compared to 24.5% in the second quarter of fiscal 2022. Net income increased to $300.1 million compared to $295.7 million. Diluted earnings per share increased 5.6% to $6.02 compared to $5.70, including a $0.01 benefit due to income tax accounting for stock-based compensation.