Home Ulta Credits Target Partnership Royalties for Q1 Comp Sales Gain
May 31, 2024

Ulta Credits Target Partnership Royalties for Q1 Comp Sales Gain

Posted In: Retail Articles

Ulta Beauty comparable sales gained in its first quarter as the company beat Wall Street revenue and earnings estimates despite a year-over-year dip in net income.

Net income was $313.1 million, or $6.47 per diluted share, versus $347.1 million, or $6.88 per diluted share, in the year-prior quarter.

A Yahoo Finance-published analyst consensus estimate forecast diluted earnings per share at $6.24 and revenue at $2.72 billion.

Comparable sales increased 1.6% in the quarter year over year, the company reported. Net sales for the quarter were $2.73 billion versus $2.63 billion in the year-previous quarter. Operating income was $400.9 million versus $442.1 million in the year-before period.

In a conference call, Ulta CEO Dave Kimball said royalty income from its partnership with Target contributed to the sales gain.

“The Ulta Beauty team delivered net sales growth of 3.5% and comparable sales growth of 1.6% in a dynamic operating environment,” Kimbell said.  “I am proud of how our teams continued to execute our transformational agenda, adapt to a rapidly evolving marketplace, and thoughtfully manage expenses across the enterprise. We have a clear plan to accelerate our momentum and continue delivering a best-in-class assortment and engaging experiences for our guests. I remain confident in our differentiated model, the resilience of the beauty category, and our ability to execute against our plans, but we have adjusted our annual guidance as we anticipate the dynamics we faced in the first quarter to continue for the balance of the year.”

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