A Banner Year for Ulta Beauty

Ulta Beauty posted financial results for the fourth quarter and fiscal year ended Jan. 30, 2016.
 
For the fourth quarter,  net sales increased 21.1% to $1.3 billion. Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 12.5% and was driven by 8.6% growth in transactions and 3.9% growth in average ticket; retail comparable sales increased 10.4%, including salon comparable sales growth of 9.2%; salon sales increased 16.7% to $54.6 million; e-commerce sales grew 44.2% to $94.8 million. Operating income increased 23.3% to $169.5 million, while net income increased 23.6% to $107.8 million.

For the fiscal year, net sales rose 21.1% to $3.9 billion. Comparable sales increased 11.8% and was driven by 8.4% growth in transactions and 3.4% growth in average ticket; retail comparable sales increased 10.0%, including salon comparable sales growth of 10.1%; salon sales increased 19.2% to $209.2 million; e-commerce sales grew 47.5% to $221.1 million. Operating income jumped 23.4% to $506.3 million.Net income increased 24.5% to $320.0 million.

“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 Chief Executive Officer Mary Dillon,. “Today we are pleased to announce an accelerated share repurchase plan that demonstrates our commitment to creating and returning value to shareholders.”