Ulta Beauty announced financial results for the second quarter ended July 30, 20165. Net sales increased 21.9% to $1,069.2 million from $877.0 million in the second quarter of fiscal 2015.
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Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 14.4% compared to an increase of 10.1% in the second quarter of fiscal 2015. The 14.4% comparable sales increase was driven by 9.7% growth in transactions and 4.7% growth in average ticket.
Retail comparable sales increased 12.6%, including salon comparable sales growth of 8.0%.
Salon sales increased 14.3% to $59.0 million from $51.6 million in the second quarter of fiscal 2015.
E-commerce sales grew 54.9% to $55.9 million from $36.1 million in the second quarter of fiscal 2015, representing 180 basis points of the total company comparable sales increase of 14.4%.
Gross profit increased 110 basis points to 36.0% from 34.9% in the second quarter of fiscal 2015, due to improvements in merchandise margins and leverage in fixed store costs, partly offset by planned supply chain deleverage related to our new distribution centers.
Selling, general and administrative (SG&A) expense as a percentage of net sales increased 110 basis points to 22.1%, compared to 21.0% in the second quarter of fiscal 2015, due to increased headcount to support our growth initiatives and an impairment charge associated with the closure of our Chicago State Street store, due to damage resulting from construction in an adjacent building.
Pre-opening expenses increased to $4.7 million, compared to $4.1 million in the second quarter of fiscal 2015. Real estate activity in the second quarter of fiscal 2016 included 24 new stores, one relocation and five remodels compared to 20 new stores, one relocation and two remodels in the second quarter of fiscal 2015.
Operating income increased 21.4% to $143.8 million, or 13.5% of net sales, compared to $118.5 million, or 13.5% of net sales, in the second quarter of fiscal 2015.
Net income increased 21.3% to $90.0 million compared to $74.2 million in the second quarter of fiscal 2015.
Income per diluted share increased 24.3% to $1.43 compared to $1.15 in the second quarter of fiscal 2015. ■