Product Innovation Boosts Ulta Beauty's Q4 Results
Ulta Beauty closed out fiscal year 2022 with a strong fourth quarter that saw net sales for the 13 week period ending Jan. 28 grow more than 18%.
Net sales for the quarter were $3.2 billion, an increase of 18.2% from the fourth quarter of 2021. Company officials said the increase was due primarily to the continued resilience of the beauty category, retail price increases, and the impact of new brands and product innovation. Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 15.6%.
Net income in the quarter increased 17.8% to $340.8 million compared to $289.4 million in the fourth quarter of fiscal 2021. Diluted earnings per share increased 23.5% to $6.68.
For the full fiscal year, net sales increased 18.3% to $10.2 billion, primarily due to the favorable impact from the continued resilience of the beauty category, retail price increases, the impact of new brands and product innovation, increased social occasions, and fewer COVID-19 limitations compared to fiscal 2021. Comparable sales increased 15.6%.
Net income for the full year increased 26.0% to $1.2 billion with diluted earnings per share up 33.5% to $24.01.
“Ulta Beauty’s strong fourth quarter results punctuate an exceptional year with record sales, profitability, and member growth, reflecting robust demand and best-in-class execution,” said Dave Kimbell, Ulta’s chief executive officer. “For the first time in our 33-year history, Ulta Beauty’s annual revenue surpassed 10 billion dollars, our annual net income exceeded one billion dollars, and we exceeded 40 million Ultamate Rewards members. These milestone achievements demonstrate the power of Ulta Beauty’s highly differentiated model, the health of the growing beauty category, and our winning culture and outstanding teams.”
Real estate activity in the fourth quarter of fiscal 2022 included 12 new stores located in Garden Grove, CA; Glendale, AZ; Hartsdale, NY; Hollister, CA; Indianapolis, IN; Liverpool, NY; Nanuet, NY; Oklahoma City, OK; Richmond, TX; Rock Springs, WY; Tullahoma, TN; and Woburn, MA. In addition, the company relocated one store and remodeled 12 stores. During fiscal 2022, the company opened 47 new stores, relocated 12 stores, and remodeled 20 stores.
Looking ahead, the company is forecasting net sales of between $10.95 billion and $11.05 billion, with comparable store increases anticipated of between 4% and 5%. Ulta plans on opening 25 to 30 new locations by the end of 2023.
“As we move into fiscal 2023, we remain optimistic about the strength and resiliency of the beauty category, and I am excited about the opportunities ahead to continue to expand our leadership position, capture market share gains, and drive long term value for all our stakeholders,” Kimbell said.