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12/09/2021

Ulta posts strong numbers in Q3 2021

Cosmetic retailer Ulta Beauty, which has a strong private brand portfolio, saw net sales increase considerably in Q3 of this year compared to 2020.
Zachary Russell
Associate Editor
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Ulta Beauty recently shared its Q3 2021 results, reporting a large increase in sales compared to last year. Ulta’s collection of over 25,000 products, including its store brand items, was recently made available on Doordash after the retailer partnered with Target to curate the store’s makeup selection at select locations.

Net sales increased 28.6% to $2.0 billion compared to $1.6 billion in the third quarter of fiscal 2020, which Ulta credits to the favorable impact from stronger consumer confidence and fewer COVID-19 restrictions compared to the third quarter of fiscal 2020. Gross profit increased to $789.5 million compared to $545.5 million in the third quarter of fiscal 2020. As a percentage of net sales, gross profit increased to 39.6% compared to 35.1% in the third quarter of fiscal 2020, primarily due to leverage of fixed costs, favorable channel mix shifts, leverage of salon expenses and improvement in merchandise margins.

“The Ulta Beauty team delivered outstanding results again this quarter,” said Dave Kimbell, CEO of Ulta. “For the third quarter, we delivered record sales and earnings, increased our market share, and expanded our Ultamate Rewards loyalty program to nearly 36 million members. This strong third quarter performance reflects the strength and resiliency of the Beauty category, the power of the Ulta Beauty differentiated model, and the impact of our winning culture and team. I want to express my sincere appreciation to all of our Ulta Beauty associates for their incredible efforts to serve our guests and deliver these excellent results.”

Selling, general and administrative (SG&A) expenses increased to $503.4 million compared to $416.4 million in the third quarter of fiscal 2020. As a percentage of net sales, SG&A expenses decreased to 25.2% compared to 26.8% in the third quarter of fiscal 2020.

Net income increased to $215.3 million compared to $74.8 million in the third quarter of fiscal 2020. Adjusted net income for the third quarter of fiscal 2020 was $92.5 million.Diluted earnings per share increased to $3.94 including a $0.01 benefit due to income tax accounting for share-based compensation.

Real estate activity in the third quarter of fiscal 2021 included seven new Ulta stores located in Arden, NC, Atlanta, GA, Batavia, NY Greensboro, NC, Hickory, NC, Ithaca, NY, and Johnstown, PA. In addition, the company relocated two stores, remodeled three stores, and closed one store. In the first nine months of fiscal 2021, Ulta opened 42 new stores, relocated four stores, remodeled eight stores, and closed four stores. At the end of the third quarter of fiscal 2021, the company operated 1,302 stores totaling 13.7 million square feet.