As self care continues to resonate with consumers, Ulta Beauty posted another solid quarter of sales and earnings while noting growing sales from new beauty appliance developments.
A Yahoo Finance-published analyst consensus estimate called for earnings per diluted share of $5.85 and revenues of $2.51 billion.
Comparable sales gained 8% while net sales advanced to $2.53 billion from $2.3 billion in the year-prior quarter, the company reported. Operating income was $391.6 million versus $391.4 million in the year-earlier period.
In discussing product category developments in a conference call, Dave Kimbell, Ulta CEO, said the hair tools segment, although challenged in lapping several years of strong growth, enjoyed improved sales trends versus the first quarter. Kimbell cited compelling new product and innovation by such brands as Dyson and Bio Ionic. He noted Ulta would introduce Shark Beauty hairstyling tools at accessible price points in the third quarter.
Kimbell also spotlighted the opening of 62 Ulta Beauty at Target shops during the second quarter, ending the period with 421 shops.
“The Ulta Beauty team delivered another quarter of strong performance, with sales, gross profit and SG&A expenses all better than our internal expectations,” Kimbell said. “During the quarter, we drove growth across all major categories, increased the number of loyalty members, and strengthened engagement with the Ulta Beauty brand. In addition, our teams achieved important milestones for our multi-year, transformational investment agenda designed to drive efficiencies and support our future growth. The beauty category has continued to deliver healthy growth, as consumers maintain their post-pandemic routines and expand their definition of beauty. Our proven business model, diverse assortment, best-in-class loyalty program, and outstanding teams have enabled us to deliver stronger-than expected results for the first half of fiscal 2023, and I remain confident we can deliver against our updated expectations for the rest of the year.”