The beauty retailer reported $3.16 billion in Q1 net sales, exceeding estimates, and lifted its earnings forecast amid strong category growth.
Ulta Beauty posted first-quarter net sales of $3.16 billion, up 11.1% year-over-year, driven by broad-based growth across all product categories and sales channels. Diluted earnings per share rose 15.5% to $7.74, surpassing analyst expectations of $6.86 per share and revenue estimates of $3.10 billion.
Comparable sales increased 5.3%, outpacing the 4.6% growth projected by analysts, supported by a 3.7% rise in average ticket value and a 1.6% increase in transaction volume. Gross margin improved to 40.1% from 39.1% a year earlier, attributed to reduced inventory shrink and better merchandise margins.
The company raised its full-year earnings outlook, citing strength in fragrances, new store openings, and the Space NK acquisition. Fragrances now account for 12% of total revenue, up from 11% in the prior year.