05.27.22
Net sales for Ulta Beauty were $2.3 billion in the first quarter ended April 30.
The gains represent a record first quarter for the company, as comparable sales increased 18.0% and net sales were $1.9 billion in the year-prior quarter.
“The Ulta Beauty team delivered exceptional first quarter results, with better-than-expected sales and earnings growth, supported by double-digit comparable sales growth across all major categories,” said Dave Kimbell, chief executive officer. “Solid execution of our strategies, paired with strong guest demand, fueled our financial performance and continued market share gains as we delighted our guests with exciting brand launches within our one-of-a-kind assortment and differentiated guest experiences.”
Net sales increased 21.0% to $2.3 billion compared to $1.9 billion in the first quarter of fiscal 2021 driven by the favorable impact of fewer COVID-19 restrictions compared to the first quarter of fiscal 2021.
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 18.0%, driven by a 10.0% increase in transactions and an 7.3% increase in average ticket. Gross profit increased to $941.0 million compared to $753.8 million in the first quarter of fiscal 2021. As a percentage of net sales, gross profit increased to 40.1% compared to 38.9% in the first quarter of fiscal 2021, primarily due to leverage in fixed costs, strong growth in other revenue, and favorable channel mix shifts, partially offset by lower merchandise margin.
Selling, general and administrative (SG&A) expenses increased to $501.0 million compared to $443.9 million in the first quarter of fiscal 2021. As a percentage of net sales, SG&A expenses decreased to 21.4% compared to 22.9% in the first quarter of fiscal 2021, primarily due to lower marketing expenses and leverage in store payroll and benefits due to higher sales, partially offset by deleverage in corporate overhead due to strategic investments.
Pre-opening expenses decreased to $2.3 million compared to $4.6 million for the first quarter of fiscal 2021.
Operating income increased to $437.7 million, or 18.7% of net sales, compared to $305.3 million, or 15.8% of net sales, in the first quarter of fiscal 2021. Tax rate decreased to 24.2% compared to 24.5% in the first quarter of fiscal 2021.
Net income increased to $331.4 million compared to $230.3 million in the first quarter of fiscal 2021.