Ulta Beauty Q1 Sales Up 12.3% to $2.6 Billion

Ulta Beauty, the Illinois-based chain of beauty stores reported Q1 revenue results, with net sales for the quarter ending on April 29, 2023, reaching $2.6 billion. This represents a 12.3% increase compared to the same period of 2022.

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Ulta Beauty, a beauty store chain based in Illinois, announced its Q1 revenue results, reporting that its net sales for the quarter ending on April 29, 2023, reached $2.6 billion. This figure represents a 12.3% increase compared to the same period in 2022.

Ulta Beauty reported that its net income rose by 4.7% to $347.1 million in the first quarter of fiscal 2023, compared to $331.4 million in the same period of the previous year. Meanwhile, diluted earnings per share increased by 9.2% to $6.88, compared to $6.30 in the first quarter of fiscal 2022.

Ulta Beauty's gross profit increased by $113.8 million or 12.1% to $1.1 billion for the 13 weeks ending on April 29, 2023, compared to $941.0 million for the same period in the previous year. However, gross profit as a percentage of net sales decreased slightly to 40.0% for the 13 weeks ending on April 29, 2023. This decrease in gross profit margin was primarily due to higher inventory shrink, lower merchandise margins, higher supply chain costs, and deleverage of salon expenses. It was partially offset by strong growth in other revenue and leverage of store fixed costs.

In the reported period, Ulta Beauty opened 5 new stores, closed one store, remodeled two stores, and relocated one store during the 13-week period that ended on April 29, 2023. This is in comparison to the 13-week period that ended on April 30, 2022, during which the company opened 10 new stores and relocated six stores.

Ulta Beauty has raised its full-year sales outlook. The company now anticipates annual sales of $11 billion to $11.1 billion, up from the previous estimate of $10.95 billion to $11.05 billion. However, the expected increase in comparable sales for the year remains the same at 4% to 5%.