Ulta Beauty has recently announced their second quarter financial results, with reported net income at $8.1 million. The beauty retailer had better-than-expected numbers, bringing in net sales of $1.2 billion, compared to $1.7 billion in the previous-year quarter.
Despite the decrease in year-over-year numbers, Ulta had comparable sales trends that improved significantly throughout the quarter. The trends went from a 37% decrease in May to a 10% decrease in July, after all their stores had reopened. And, comparable sales were in the mid-single digit range for the first three weeks of August. Sales trends have continued to improve across the board, according to Mary Dillon, Chief Executive Officer at Ulta.
“We are encouraged by the recent improvement in sales trends, but we believe it will take time to fully return to pre-COVID levels. Given continued disruption from the pandemic, new operational protocols, and near-term employment and economic uncertainty, we expect sales will continue to be challenged for the rest of the year. Longer-term, we are confident that Beauty will recover and thrive, given continued strong engagement and emotional connection with the category,” Dillon said.
Ulta’s team remains focused on their operating model as the retail landscape continues to change during these unprecedented times. The brand also announced its plans to open at least 30 new stores in 2021. Ulta is still in the process of finalizing their strategies for next year, but remain optimistic towards future growth for the brand.
“We believe the near-term operating environment will continue to be dynamic and challenging, but I remain optimistic and excited about the long-term opportunity for Ulta Beauty. We know beauty enthusiasts remain passionate and engaged with the category, and we have great talent, a strong culture, a differentiated operating model, and the right strategy to drive growth. As we transition into the new normal, I am confident the Ulta Beauty team will continue to innovate, move with agility and efficiency, and grow as the largest and most admired beauty retailer in the U.S,” Dillon added.
Source: ULTA Beauty – Press Release 8/27/20
Photo Credit: Ulta – Ways to Shop
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About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the company reinvented the beauty retail experience by offering a new way to shop for beauty, bringing together all things beauty, all in one place. Today, Ulta Beauty has grown to become the top national retailer offering the complete beauty experience. Ulta Beauty brings possibilities to life through the power of beauty each and every day in our stores and online with more than 25,000 products from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label. Ulta Beauty also offers a full-service salon in every store featuring hair, skin, brow, and make-up services. Ulta Beauty is recognized for its commitment to personalized service, fun and inviting stores and industry-leading Ultamate Rewards loyalty program. As of February 1, 2020, Ulta Beauty operates 1,254 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. For more information, visit www.ulta.com.
