Net sales of the beauty retailer jumped 9.7% annually to $2.12 billion during the three-month period, which was slightly above the Wall Street estimates. Total comparable store sales rose 9.4%, while e-commerce sales climbed 25.1% year-over-year. Retail comparable sales were up 7%, which included a 6.2% salon comparable sales growth.
During the quarter, total comparable store sales rose 9.4%, while e-commerce sales climbed 25.1% year-over-year
“Solid execution by our merchandising, store operations, e-commerce, marketing, supply chain, and systems teams drove healthy sales growth and a differentiated guest experience throughout the important holiday season,” said CEO Mary Dillon.
With the digital expansion progressing, the company is currently looking for a 20-30% increase in e-commerce sales for fiscal 2019, when comparable store sales are seen growing in the 6-7% range. Net income is estimated to rise to the range of $12.65 per share to $12.85 per share on a projected sales growth in the low double digits. It also expects to incur capital expenditures of $380-$400 million. The management plans to open around 80 new stores and remodel/re-locate 20 others this year.
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Ulta Beauty repurchased around 2.5 million shares in fiscal 2018 for about $616. Earlier this week, the company approved a new share repurchase authorization of $875 million, to replace the existing program. During the fourth quarter, the company opened 12 new stores and closed one, taking the total store count to 1,174.
After dropping to a six-month low in December last year, Ulta Beauty shares bounced back and maintained a steady uptrend. The stock, which currently trades near its recent peak, rose sharply in the extended trading hours Thursday after closing the regular session lower.