Ulta Beauty announced financial results for the second quarter ended August 1, 2015, which compares to the same periods ended August 2, 2014. Net sales increased 19.4% to $877 million from $734.2 million in the second quarter of fiscal 2014.
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Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 10.1% compared to an increase of 9.6% in the second quarter of fiscal 2014. The 10.1% comparable sales increase was driven by 7.0% growth in transactions and 3.1% growth in average ticket.
Retail comparable sales increased 8.9%, including salon comparable sales growth of 10.1%.
Salon sales increased 19.7% to $51.6 million from $43.1 million in the second quarter of fiscal 2014.
E-commerce sales grew 43.4% to $36.1 million from $25.2 million in the second quarter of fiscal 2014, representing 120 basis points of the total company comparable sales increase of 10.1%.
Gross profit decreased 40 basis points to 34.9% from 35.3% in the second quarter of fiscal 2014 primarily due to supply chain initiatives including the new Greenwood, Indiana distribution center.
Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 50 basis points to 21.0% compared to 21.5% in the second quarter of fiscal 2014 primarily due to marketing efficiencies.
Pre-opening expenses increased to $4.1 million, compared to $3.6 million in the second quarter of fiscal 2014. Real estate activity in the second quarter of fiscal 2015 included 20 new stores, one relocation and two remodels compared to 19 new stores and four remodels in the second quarter of fiscal 2014.
Operating income increased 20.9% to $118.5 million, or 13.5% of net sales, compared to $98 million, or 13.3% of net sales, in the second quarter of fiscal 2014.
Net income increased 22% to $74.2 million compared to $60.8 million in the second quarter of fiscal 2014.
Income per diluted share increased 22.3% to $1.15 compared to $0.94 in the second quarter of fiscal 2014. ■