After a slew of weaker than anticipated outcomes from the magnificence sector, Ulta bucked the development, elevating its full-year outlook on the again of a powerful second quarter.
“In the course of the quarter, we drove progress throughout all main classes, elevated the variety of loyalty members, and strengthened engagement with the Ulta Magnificence model,” mentioned Dave Kimbell, chief govt officer. “The magnificence class has continued to ship wholesome progress, as customers preserve their post-pandemic routines and increase their definition of magnificence.”
The sweetness retailer now expects internet gross sales to return in at a spread between $11.05 billion and $11.15 billion. Beforehand it had forecast $11 billion to $11.1 billion. Estimates for diluted earnings per share have been lifted to $25.10 to $25.60, from $24.70 to $25.40.
Web gross sales elevated 10.1 % to $2.5 billion in its second quarter ended July 29, in comparison with $2.3 billion a 12 months earlier. This was in keeping with Wall Road forecasts.
Web earnings rose to $300.1 million in comparison with $295.7 million, whereas diluted earnings per share elevated 5.6 % to $6.02 in comparison with $5.70. Analysts had estimated $5.91 per share.
Skincare continued to be considered one of its strongest classes, with each status and mass parts delivering double-digit progress.
Make-up delivered low single-digit progress, pushed by sturdy efficiency in mass cosmetics, though status make-up was challenged because it lapped the numerous impression of the Fenty launch final 12 months.
In latest months, Ulta has made a devoted push into luxurious, including manufacturers corresponding to Dior, Chanel, Hourglass and shortly Pat McGrath Labs into round 200 shops. Kimbell declined to reveal its efficiency in numbers throughout a name with analysts, however pressured that it is a vital a part of total technique. “We all know there’s progress within the luxurious aspect of the enterprise,” he mentioned.
As for stock shrink — the distinction between a balance-sheet stock and precise inventory that’s typically blamed on organized retail crime, Ulta famous that it elevated through the quarter. However Kecia Steelman, chief working officer, added she is already seeing progress as Ulta strikes to lock up perfume in cupboards in 70 % of shops by the top of the 12 months.
“What we’re seeing is within the preliminary shops that we rolled out the locked perfume instances for, we truly noticed gross sales enchancment as a result of we had been in inventory with the product,” she mentioned.
