Ulta Beauty Surges Past Pre-pandemic Q3

Beauty is back. Ulta Beauty has reported Q3 2021 net sales that blew past pre-pandemic figures, totaling $1,995.8 million (2020: $1,552.0 million; $1,682.5 million). The company also revised upward its full-year 2021 outlook from $8.1-8.3 billion to $8.5-8.6 billion.

Q3 net sales increased 28.6% to $2.0 billion, compared to $1.6 billion in the third quarter of fiscal 2020. Comparable sales increased 25.8% compared to a decrease of 8.9% in the third quarter of fiscal 2020, driven by a 16.8% increase in transactions and a 7.7% increase in average ticket.

Previously: Ulta Beauty at Target

For the first nine months of the fiscal year, net sales increased 49.3% year-over-year to $5.9 billion, driven by improving consumer confidence, government stimulus payments and the easing of COVID-19 restrictions.

Comparable sales increased 47.1% in the nine-month period, compared to a decrease of 23.8% in the first nine months of fiscal 2020, driven by a 40.7% increase in transactions and a 4.6% increase in average ticket. Compared to the first nine months of fiscal 2019, comparable sales increased 11.5%.

Compared to the third quarter of fiscal 2019, Q3 comparable sales increased 14.3%. Gross profit increased to $789.5 million compared to $545.5 million in 2020.

Q3 2021 gross profit increased to 39.6%, compared to 35.1% in the third quarter of fiscal 2020.

Selling, general and administrative expenses increased to $503.4 million compared to $416.4 million in the third quarter of fiscal 2020. However, a percentage of net sales, those expenses decreased to 25.2% compared to 26.8% in the third quarter of fiscal 2020.

Operating income increased to $284.2 million, or 14.2% of net sales, compared to $101.3 million, or 6.5% of net sales, in the third quarter of fiscal 2020.

Net income increased to $215.3 million compared to $74.8 million in the third quarter of fiscal 2020. 

Ulta Beauty's data shows that the fragrance and bath category enjoyed growth as a share of sales throughout 2021.

Nine-month net sales increased 49.3% to $5.9 billion compared to $4.0 billion in the first nine months of fiscal 2020.

Comparable sales increased 47.1% compared to a decrease of 23.8% in the first nine months of fiscal 2020, driven by a 40.7% increase in transactions and a 4.6% increase in average ticket. Compared to the first nine months of fiscal 2019, comparable sales increased 11.5%.

Gross profit increased to $2.3 billion compared to $1.2 billion in the first nine months of fiscal 2020. As a percentage of net sales, gross profit increased to 39.7% compared to 29.8% in the first nine months of fiscal 2020.

Selling, general and administrative expenses increased to $1.4 billion compared to $1.1 billion in the first nine months of fiscal 2020. As a percentage of net sales, these expenses decreased to 23.9% compared to 27.1% in the first nine months of fiscal 2020.

Operating income in the first nine months of 2021 increased to $921.9 million, or 15.6% of net sales, compared to $12.5 million, or 0.3% of net sales, in the first nine months of fiscal 2020.

Net income increased to $696.5 million compared to $4.3 million in the first nine months of fiscal 2020. 

“The Ulta Beauty team delivered outstanding results again this quarter," said Dave Kimbell, chief executive officer. "For the third quarter, we delivered record sales and earnings, increased our market share, and expanded our Ultamate Rewards loyalty program to nearly 36 million members. This strong third quarter performance reflects the strength and resiliency of the beauty category, the power of the Ulta Beauty differentiated model, and the impact of our winning culture and team. I want to express my sincere appreciation to all of our Ulta Beauty associates for their incredible efforts to serve our guests and deliver these excellent results.”