Beauty retailer Ulta Beauty has upped its full-year guidance after reporting both bottom- and top-line growth in the second quarter as the beauty sector continues to be resilient against a backdrop of rising inflation.
In the three months to July 30, net sales increased 16.8 percent year-over-year to 2.3 billion dollars, with the company citing the impact of new brands and product innovation, and the removal of Covid-19 restrictions compared to a year earlier.
Comparable sales were up 14.4 percent, driven by an 8.3 percent increase in transactions and a 5.6 percent increase in average ticket.
Net income for the quarter increased to 295.7 million dollars from 250.9 million dollars a year earlier.
“Strong consumer demand and broad-based momentum across our business continued as our teams executed our plans with excellence,” said CEO Dave Kimbell in a statement.
“For the quarter, we delivered double-digit comparable sales growth across all major categories and increased profitability, demonstrating the strength of our model and the commitment of our teams,” he said.
Based on its second-quarter results, Ulta Beauty has upped its full-year outlook.
It now expects annual sales of between 9.65 billion dollars and 9.75 billion dollars compared to a previous estimate of between 9.35 billion dollars and 9.55 billion dollars.
The company expects diluted earnings per share of between 20.7 dollars and 21.2 dollars, up from previous guidance of between 19.2 dollars and 20.1 dollars.
The beauty sector has been performing strongly recently despite rising inflation rattling other industries.
US beauty giant Coty last week reported a 10 percent increase in revenue to 1.17 billion dollars, though its loss widened to 284.8 million dollars from 210.2 million dollars a year earlier.