Ulta Beauty announced financial results for the fourth auarter ended January 28, 2017.
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Net sales increased 24.6% to $1,580.6 million from $1,268.3 million in the fourth quarter of fiscal 2015.
Comparable sales increased 16.6% compared to an increase of 12.5% in the fourth quarter of fiscal 2015. The 16.6% comparable sales increase was driven by 10.9% growth in transactions and 5.7% growth in average ticket.
Retail comparable sales increased 12.8%, including salon comparable sales growth of 8.8%.
Salon sales increased 15.2% to $62.9 million from $54.6 million in the fourth quarter of fiscal 2015.
E-commerce sales grew 63.4% to $154.9 million from $94.8 million in the fourth quarter of fiscal 2015, representing 380 basis points of the total company comparable sales increase of 16.6%.
Gross profit as a percentage of net sales decreased 10 basis points to 34.5% from 34.6% in the fourth quarter of fiscal 2015, due to planned supply chain investments and a higher mix of e-commerce sales, partly offset by leverage in fixed store costs. In the fourth quarter of fiscal 2015, the company benefitted from a significant reduction in promotional activity, contributing to gross profit improvement of 120 basis points. Promotional levels in the fourth quarter of 2016 were in line with the prior year period.
Selling, general and administrative (SG&A) expense as a percentage of net sales decreased 110 basis points to 20.0%, compared to 21.1% in the fourth quarter of fiscal 2015, due to leverage of advertising and corporate overhead expenses attributed to higher sales volume.
Pre-opening expenses increased to $4.4 million, compared to $1.4 million.
For the fiscal year 2016
Net sales increased 23.7% to $4,854.7 million from $3,924.1 million in fiscal 2015.
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 15.8% compared to an increase of 11.8% in fiscal 2015. The 15.8% comparable sales increase was driven by 10.7% growth in transactions and 5.1% growth in average ticket.
Retail comparable sales increased 13.4%, including salon comparable sales growth of 8.7%.
Salon sales increased 15.2% to $241.1 million from $209.2 million in fiscal 2015.
E-commerce comparable sales grew 56.2% to $345.3 million from $221.1 million in fiscal 2015, representing 240 basis points of the total company comparable sales increase of 15.8%.
Gross profit as a percentage of net sales increased 70 basis points to 36.0% from 35.3% in fiscal 2015.
SG&A expense as a percentage of net sales increased 10 basis points to 22.1% compared to 22.0% in fiscal 2015. ■