Ulta Beauty, the largest U.S. beauty retailer selling cosmetics, fragrance, skin care products, hair care products and salon services, continues to resonate with the American market with sales surging 65.2% in the first-quarter (Q1) of 2021 as compared to last year. Net sales came in at $1.9 billion for the quarter, driven primarily by an increase in transactions of 53% and an almost 9% increase in average ticket (how much a customer spends). The beauty retailer has been on a growth trajectory beating out 2019 sales by 7%.
According to the Ulta Beauty earnings call, the net sales increase was primarily due to the favorable impact in the U.S. from improving consumer confidence, government stimulus payments and the easing of COVID-19 restrictions. Mary Dillon, CEO of Ulta Beauty, said, “The Ulta Beauty team delivered an outstanding start to the year, with sales and earnings exceeding fiscal 2020 and fiscal 2019 first quarter levels.”
Real estate activity in the first quarter of fiscal 2021 included 28 new stores representing a 2.3% increase in square footage compared to the first quarter of fiscal 2020. Ulta Beauty will begin to roll out its Target and Ulta Beauty store concepts later this year. Currently, Ulta Beauty operates 1,290 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content.
Dillion is stepping down as CEO in June and will move to an executive chair position at the company. Since her appointment as CEO eight years ago, the compounded annual growth rate through 2020 was 15.7%, an impressive tenure performance.
