“The Ulta Beauty team kicked off 2017 with excellent performance in the first quarter,” said Mary Dillon, chief executive officer. “Strong execution of our growth strategies delivered above plan sales and earnings growth. Our results reflect continued newness and innovation in merchandising, successful marketing programs, steady progress in our salon business and exceptional growth in e-commerce.”
Net sales increased 22.5% to $1.3 billion while operating income rose 28.0% to $188.4 million. Net income jumped 39.4% to $128.2 million while salon sales increased 16.7% to $68.7 million.
Average inventory per store increased 11.2%, compared to the first quarter of fiscal 2016. The increase in inventory was driven by 104 net new stores, the scaling up of the Greenwood, Indiana and the opening of the Dallas, Texas distribution centers, investments in inventory to ensure high in-stock levels to support sales growth, and incremental inventory for new brands and the expansion of certain prestige brands.