Ulta Beauty sees notable Q3 sales increase, outlines CFO transition plan

Cosmetics retailer Ulta Beauty has reported “another strong performance” for the third quarter of 2023 – the 13-week period ended October 28, 2023 – with net sales reaching 2,488.9 million dollars, up 6.4 percent from 2,333.8 million in the year prior.

Comparable sales for the period rose 4.5 percent compared to an increase of 14.6 percent, while gross profit was up 3 percent to 992.1 million dollars, compared to the previous 962.8 million dollars.

The company’s operating income came to 327.2 million dollars, or 13.1 percent net sales, in relation to last year’s 15.5 percent. Meanwhile, net income dropped from 274.6 million dollars to 249.5 million dollars.

Ulta’s diluted earnings per share was 5.07 dollars compared to its previous 5.34 dollars.

In a release, Dave Kimbell, chief executive officer at Ulta, said that the diluted EPS “exceeded” internal expectations, while brand awareness increased and “traffic trends remained healthy”.

Kimbell continued: “As we look to the future, the outlook for the Beauty category is bright, and I am confident Ulta Beauty has the right plans in place to delight our guests this holiday season, expand our leadership position in specialty beauty retail, and deliver long-term shareholder growth.”

SVP of finance promoted to CFO

The financials came simultaneous to the announcement that Ulta’s senior vice president of finance, Paula Oyibo, was to be promoted to the position of chief financial officer, succeeding Scott Settersten, who is set to retire.

Effective April 1, 2024, Oyibo will report to Kimbell in a position that will expand on her current overview of financial planning and analysis, treasury and non-merchandise procurement functions.

On the appointment, Kimbell said: “Since joining Ulta Beauty in 2019, Paula has established herself as a trusted partner and visionary leader, particularly as we navigated the pandemic, ultimately helping the company emerge in a position of leadership and strength.

“Her deep knowledge and understanding of our business, experience leading finance organisations, and strong commitment to nurturing talent and an inclusive culture make her the ideal person to serve as Ulta Beauty’s next CFO.”