Ulta Beauty Announces First Quarter Fiscal 2019 Results

Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the first quarter ended May 4, 2019.

“The Ulta Beauty team delivered a strong start to the year with solid first quarter sales and earnings performance,” said Mary Dillon, Chief Executive Officer. “These results reflect a healthy balance of traffic and ticket growth, and double digit comparable sales growth in mass cosmetics, skin care and fragrance, tempered by continued mixed performance in prestige cosmetics. We are driving operational excellence across the enterprise, while investing in growth initiatives to fuel the long-term success of Ulta Beauty. We are excited to announce our decision to expand internationally and establish Ulta Beauty as a successful global brand. Our first step in becoming a global beauty retailer will be to prepare to launch operations in Canada.”

For the First Quarter of Fiscal 2019
• Net sales increased 12.9% to $1,743.0 million compared to $1,543.7 million in the first quarter of fiscal 2018;
• Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 7.0% compared to an increase of 8.1% in the first quarter of fiscal 2018. The 7.0% comparable sales increase was driven by 4.3% transaction growth and 2.7% growth in average ticket;
• Gross profit as a percentage of net sales increased 70 basis points to 37.0% compared to 36.3% in the first quarter of fiscal 2018, primarily due to improvement in merchandise margins driven by our marketing and merchandising strategies and leverage in fixed store costs, partially offset by investments in our salon services and supply chain operations;
• Selling, general and administrative expenses as a percentage of net sales increased 70 basis points to 23.1% compared to 22.4% in the first quarter of fiscal 2018, due to deleverage in corporate overhead related to investments in growth initiatives and store labor, partially offset by improvement in variable store and marketing expense attributed to cost efficiencies and higher sales volume;
• Pre-opening expenses decreased to $4.2 million compared to $5.2 million in the first quarter of fiscal 2018. Real estate activity in the first quarter of fiscal 2019 included 22 new stores and one remodeled store, compared to 34 new stores and two remodeled stores in the first quarter of fiscal 2018;
• Operating income increased 13.2% to $237.5 million, or 13.6% of net sales, compared to $209.8 million, or 13.6% of net sales, in the first quarter of fiscal 2018;
• Tax rate decreased to 19.8% compared to 22.1% in the first quarter of fiscal 2018. The lower effective tax rate is primarily due to income tax accounting for share-based compensation;
• Net income increased 16.9% to $192.2 million compared to $164.4 million in the first quarter of fiscal 2018; and
• Diluted earnings per share increased 20.7% to $3.26, which included a $0.18 benefit due to income tax accounting for share-based compensation, compared to $2.70 in the first quarter of fiscal 2018, which included a $0.07 benefit due to income tax accounting for share-based compensation.
more detail at: http://ir.ultabeauty.com/news-releases/news-release-details/2019/Ulta-Beauty-Announces-First-Quarter-Fiscal-2019-Results/default.aspx

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