Cosmetics retailer and beauty service company Ulta has experienced a 14.4% year-over-year (YOY) sales increase in Q4 2013, up to $868.1 million from $758.8 million in Q4 2012. After unveiling these positive earnings results, Ulta shares rose 6.9% to $95.70.
Achievements that influenced company growth include an ambitious store opening initiative, expansion of the Ulta loyalty program, which now has 13 million members, and rapid growth of its e-Commerce business. Additionally, the retailer added 25 new brands to its inventory assortment, which contributed to 7.9% annual comparable store sales growth, according to Mary Dillon, CEO of Ulta.
“Ulta Beauty achieved excellent top line growth in the fourth quarter,” Dillon said. “We delivered earnings growth consistent with our expectations and made significant progress with our key growth strategies.”
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For Q4 2013, Ulta saw comparable sales — which comprises of all stores open and e-Commerce — increase by 9.2%, compared to an 8.6% increase in Q4 2012. This improvement was attributed to the negative impact of Super Storm Sandy in 2012, and the overall improvement in store traffic and sales following. E-Commerce was a key growth area, with comparable sales growing by 82.5% in Q4 2013. Although gross profit decreased from 34.2% to 33.8%, net income increased 9.5%, from $64.5 million to $70.7 million.
During the 2013 fiscal year, net sales increased 20.3% from 2.2 billion in FY 2012 to approximately $2.7 billion. E-Commerce comparable sales grew 76.6% between 2012 and 2013, representing 180 basis points of the total comparable sales increase of 7.9%.
