Ulta Beauty will not regress in 2018 due to its aggressive expansion.
The beauty nerve center said it will open approximately 100 new stores and carry out 17 remodeling or relocation projects in the 2018 fiscal year. Ulta ended the 2017 fiscal year with 1,074 stores. 19659002] Ulta also released its quarterly and annual results. For its fourth quarter, which ended February 3, Ulta's net income increased 48.5% to $ 208.2 million, compared to $ 140.2 million in the same period of the previous year. Earnings per share increased 51.8% to $ 3.40. The adjusted earnings per share were $ 2.75, which excludes a net profit of $ 0.65 due to the elements related to the tax reform. Analysts expected $ 2.77 per share.
Net sales increased 22.6% to $ 1.93. Excluding the impact of week 53 in fiscal year 2017, net sales increased 15.7%.
Same store sales (including e-commerce sales) increased 8.8%, driven by 6.2% transaction growth and 2.6% growth in average ticket. Comparable retail sales increased 4.2%, including the comparable store sales growth of 3.2%.
E-commerce sales increased 60.4% to $ 248.3 million, including the benefit of week 53, compared to $ 154.9 million last year. Comparable sales of electronic commerce increased 50.4%.
The company also announced a repurchase of shares of $ 625 million and a one-time bonus for hourly workers due to the tax reform.
For the entire year, net sales, including the week 53 benefit, increased 21.2% to $ 5.88 billion. Same store sales increased 11%. Net income increased 35.5% to $ 555.2 million, compared to $ 409.8 million in fiscal year 2016.
"Looking to 2018, we are rolling out a portion of the tax reform benefits to invest in our people and accelerate investments to boost growth and innovation. "said Mary Dillon, CEO, Ulta Beauty. "We also recognize the winds against the operating margin because of the various cost pressures that all retailers face, our higher than expected combination of e-commerce and the new revenue recognition accounting standard." To help offset these pressures, we are implementing a program of cost optimization to offer benefits in the areas of indirect purchases, integral operative efficiency, real estate costs and improvement of the merchandise margin. "
For its next first quarter, Ulta expects to register revenues between $ 1.51 thousand million and $ 1.52 billion. The current consensus estimate requires $ 1.52 billion.