Ulta Beauty announced their financial results for quarter one of 2020, reporting net sales of $1.17 million compared to $1.74 million in last year’s first quarter.
Temporary store closures during the COVID-19 pandemic impacted Ulta’s overall sales and earnings. However, the beauty brand has taken numerous steps to reinforce their financial standing. The following stats were featured in Ulta’s press release:
- Comparable sales decreased 35.3%
- Net loss of $78.5 million, or $1.39 per dilutive share
- $1,153.5 million in cash, cash equivalents and short-term investments
“Fiscal 2020 started off well, with good growth in comparable store sales, market share, and our Ultamate Rewards loyalty program through mid-March. However, the rapid escalation of COVID-19 resulted in significant disruption to our operations,” said Mary Dillon, Ulta’s Chief Executive Officer.
While adhering to safety guidelines, Ulta reopened their doors in select locations and has launched a curbside pickup initiative. Currently, over 800 ULTA stores offer curbside pickup and more than 330 stores have reopened.
“While it is still early, we have seen stronger-than-expected sales in reopened stores, and we’re seeing great engagement with our salon services, where available,” Dillon said.
Ulta is said to have a strong competitive advantage, that will lead them to thrive past the pandemic. Consumers prefer to shop in-store for their cosmetics, to physically look at products, and match colors/shades in person. With both the preference for brick-and-mortar and their sustainable operating model, there’s definitely a positive outlook for the brand emerging from this health crisis.
“At Ulta Beauty, we have a strong, differentiated operating model, a brand that is known and loved, and passionate and optimistic associates, and I am confident we will emerge from this crisis well positioned to accelerate our market share gains and extend our competitive advantages,” Dillon added.
Ulta’s optimism ties in closely with our own insights during this time. At SREG, we have initiated the reopening process at numerous properties. With this, we’ve noticed significant traffic and engagement among consumers across our portfolio.
“We’re seeing a healthy consumer eagerness and excitement to get out, shop, socialize, dine, and begin to experience a normal life, and that is also having a big, immediate impact on mall traffic, including spillover impact on tenant traffic and sales, in spite of local and state issued social distancing requirements,” said Carmen Spinoso, Chairman and CEO of Spinoso Real Estate Group, in a statement.
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.