Ulta Beauty announced financial results for the fourth auarter fiscal year ended January 31, 2015. Q4 net sales increased 20.7% to $1,047.6 million from $868.1 million in Q4 2013.
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Fourth quarter results: Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 11.1% compared to an increase of 9.2% in the fourth quarter of fiscal 2013. The 11.1% same store sales increase was driven by 7.7% growth in transactions and 3.4% growth in average ticket.
E-commerce sales grew 55.2%, representing 230 basis points of the total company same store sales increase of 11.1%.
Salon sales increased 20.9%, and comparable salon sales grew 11.0%, contributing 10 basis points to the retail comparable sales increase of 8.8%.
Gross profit decreased 40 basis points to 33.4% from 33.8% in the fourth quarter of fiscal 2013, driven by increased costs associated with the Ultamate Rewards loyalty program and the impact of a higher mix of e-commerce sales.
Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 40 basis points to 20.1% compared to 20.5% in the fourth quarter of 2013.
Pre-opening expenses decreased to $1.6 million, compared to $1.8 million in the fourth quarter of fiscal 2013. Real estate activity in the fourth quarter of fiscal 2014 included 10 new stores compared to 11 new stores in the fourth quarter of fiscal 2013.
Operating income increased 20.4% to $137.5 million, or 13.1% of net sales, compared to $114.1 million, or 13.1% of net sales, in the fourth quarter of fiscal 2013.
Tax rate of 36.6% reflects a $0.02 per diluted share benefit related to a non-recurring tax adjustment.
Net income increased 23.5% to $87.3 million compared to $70.7 million in the fourth quarter of fiscal 2013. Net income increased 21.6% to $86.0 million excluding the impact of a no
n-recurring tax adjustment; an
Income per diluted share increased 23.9% to $1.35 compared to $1.09 in the fourth quarter of fiscal 2013.
Income per diluted share includes a non-recurring tax adjustment of approximately $0.02 resulting in a lower effective tax rate compared to the fourth quarter of fiscal 2013. Excluding this tax benefit, income per diluted share increased 22.0% to $1.33.
For the Fiscal Year 2014
Net sales increased 21.4% to $3,241.4 million from $2,670.6 million in fiscal 2013.
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 9.9% compared to an increase of 7.9% in fiscal 2013. The 9.9% same store sales increase was driven by 5.6% growth in transactions and 4.3% growth in average ticket.
E-commerce sales grew 56.4%, representing 180 basis points of the total company same store sales increase of 9.9%.
Salon sales increased 20.4%, and comparable salon sales grew 9.5%, contributing 10 basis points to the retail comparable sales increase of 8.1%.
Gross profit decreased 10 basis points to 35.1% compared to 35.2% in fiscal 2013.
SG&A expense as a percentage of net sales decreased 30 basis points to 22.0% compared to 2
Operating income increased 25.3% to $410.4 million, or 12.7% of net sales, compared to $327.6 million, or 12.3% of net sales, in fiscal 2013.
Tax rate of 37.5% reflects a $0.02 per diluted share benefit related to a non-recurring deferred tax adjustment.
Net income increased 26.8% to $257.1 million compared to $202.8 million in fiscal 2013. Net income increased 26.1% to $255.8 million excluding the impact of a non-recurring tax adjustment.
Income per diluted share increased 26.3% to $3.98 compared to $3.15 in fiscal 2013. Income per diluted share includes a non-recurring tax adjustment of approximately $0.02 resulting in a lower effective tax rate compared to fiscal 2013. Excluding this tax benefit, income per diluted share increased 25.7% to $3.96. ■