Ulta Beauty has announced Q4 and full-year financial results for fiscal 2021. The beauty brand brought in net sales of $2.6 billion for the year, with a comparable sales increase of 21.4% and net income of net income of $289.4 million.
“Our fiscal year ended with better-than-expected performance, reflecting excellent, enterprise-wide execution against our fourth quarter plans as well as stronger consumer demand and the strength of Ulta Beauty’s differentiated model. I want to express my sincere appreciation to all Ulta Beauty associates who continue to provide exceptional care and service to our guests and to each other, while successfully navigating pandemic-related challenges and delivering strong results for all our stakeholders,” said Dave Kimbell, Chief Executive Officer.
Q4 Highlights:
- Net sales increased 24.1% to $2.7 billion compared to $2.2 billion in the fourth quarter of fiscal 2020 due to the favorable impact from stronger consumer confidence and fewer COVID-19 restrictions compared to the fourth quarter of fiscal 2020.
- Comparable sales increased 21.4% compared to a decrease of 4.8% in the fourth quarter of fiscal 2020, driven by a 10.4% increase in transactions and a 9.9% increase in average ticket. Compared to the fourth quarter of fiscal 2019, comparable sales increased 15.4%.
- Gross profit increased to $1.0 billion compared to $771.0 million in the fourth quarter of fiscal 2020.
- Operating income increased to $375.6 million, or 13.8% of net sales, compared to $224.3 million, or 10.2% of net sales, in the fourth quarter of fiscal 2020.
- Net income increased to $289.4 million compared to $171.5 million in the fourth quarter of fiscal 2020. Adjusted net income for the fourth quarter of fiscal 2020 was $193.4 million.
- Ulta opened 6 new stores across the US in Q4, bringing their total store count to 1,308 stores totaling 13.8 million square feet.
Fiscal 2021 Highlights:
- Net sales increased 40.3% to $8.6 billion compared to $6.2 billion in fiscal 2020, primarily due to the favorable impact from improving consumer confidence, government stimulus payments, and the easing of COVID-19 restrictions, as compared to fiscal 2020.
- Comparable sales increased 37.9% compared to a decrease of 17.9% in fiscal 2020, driven by a 30.0% increase in transactions and a 6.0% increase in average ticket. Compared to fiscal 2019, comparable sales increased 12.6%.
- Gross profit increased to $3.4 billion compared to $1.9 billion in fiscal 2020.
- Net income increased to $985.8 million compared to $175.8 million in fiscal 2020.
“The Beauty category is healthy and growing, and we are confident the recovery that began in 2021 will continue, as consumers maintain their self-care routines, become more resilient to COVID surges, and engage in more leisure and social activities. Our outlook for fiscal 2022 reflects our expectations for Beauty growth as well as the challenge of lapping exceptional performance in fiscal 2021, ongoing wage and supply chain cost pressures, and investments in new capabilities to support future growth,” added Kimbell.
Source: Ulta Press Release
Photo Credit: WWD
