Ulta Beauty appears to be faring well in the increasingly fierce battle for customers in the beauty care space, as Sephora is deepening its in-store presence at Kohl’s and Walmart adopts the Beauty Space kiosk concept across its stores.
CEO Dave Kimbell said Thursday (March 10) that he’s confident Ulta will continue to hold its own into 2022 and beyond after setting the foundation for its continued growth in 2021, according to a company press release that highlighted its fiscal 2021 Q4 and full-year earnings.
“Our fiscal year ended with better-than-expected performance, reflecting excellent, enterprise-wide execution against our fourth quarter plans as well as stronger consumer demand and the strength of Ulta Beauty’s differentiated model,” said Kimbell in the press release.
“The beauty category is healthy and growing, and we are confident the recovery that began in 2021 will continue, as consumers maintain their self-care routines, become more resilient to COVID surges, and engage in more leisure and social activities,” he said.
Kimbell said he’s “more excited than ever about the opportunity for Ulta Beauty to grow and continue to lead the beauty category.”
“We are emerging from the pandemic as a stronger, healthier business, we operate in an attractive and growing category, and we have an exceptional team in place to execute our ambitious plans and deliver for our guests, associates and shareholders,” he said.
As for fourth-quarter earnings ending Jan. 29, Q4 saw net sales increase 24.1% to $2.7 billion, up from $2.2 billion in the fourth quarter of fiscal 2020 thanks to stronger consumer confidence and fewer COVID-19 restrictions. Comparable sales increased in 2021 by 21.4% after a decrease of 4.8% in the fourth quarter of fiscal 2020. The jump came after a 10.4% increase in transactions and a 9.9% increase in average ticket.
Ulta’s full-year 2021 net sales increased 40.3% to $8.6 billion from $6.2 billion in fiscal 2020, largely because of improving consumer confidence, government stimulus payments, and the easing of COVID-19 restrictions. FY21 comparable sales increased 37.9% after a decrease of 17.9% in fiscal 2020, with a 30% increase in transactions and a 6% increase in average ticket.
Related: Kohl’s Promises ‘Reinvention,’ Aims to Make French Retailer Sephora a $2B Business
Kohl’s wants to increase Sephora’s sales to more than $2 billion a year. The company has about 200 Sephora stores-within-stores and plans to have 850 by year’s end.
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