Ulta Beauty has announced a surge in sales for the latest quarter, driven by increased consumer spending on cosmetics. In the fiscal second quarter, which ended on July 29, the beauty retailer recorded a net profit of $300.1 million, or $6.02 per share. This compares to $295.7 million, or $5.70 per share, for the same period last year. Earnings per share exceeded expectations of $5.91, as predicted by analysts polled by FactSet.
Ulta Beauty's sales also performed well, reaching $2.53 billion, a 10% increase compared to projections of $2.52 billion. The company attributes this success to growth across all major categories and a rise in the number of members joining its loyalty program.
As Chief Executive Dave Kimbell remarked, "The beauty category continues to witness strong growth as consumers adjust to their post-pandemic routines and broaden their perception of beauty." Despite a 1% decline in average ticket size (an improvement from the previous quarter), total transactions increased by 9%, albeit slightly lower than the 11% rise seen in Q1.
Ulta Beauty opened three new stores during this quarter and remains optimistic about future growth prospects.