The beauty and cosmetics retailer said the net sales rise was mainly because of favorable impact domestically from better consumer confidence, government stimulus payments and the relaxing of pandemic restrictions, according to an announcement.
Ulta said that comparable sales rose by 65.9 percent. The retailer reported that selling, general and administrative (SG&A) expenses grew to $443.9 million from $380.9 million in Q1 fiscal 2020. It mainly attributed the rise to increased payroll and benefits and increased advertising. But SG&A expenses decreased to 22.9 percent of net sales, marking an improvement from 32.5 percent in Q1 fiscal 2020.
In addition, Ulta reported that gross profit soared to $753.8 million from $303.6 million in Q1 fiscal 2020. Gross profit jumped to 38.9 percent as a percentage of net sales, up from 25.9 percent in the same quarter in the previous fiscal year.
“We have emerged from 2020 with strong momentum in our sales trends, market share gains, and consumer sentiment,” Ulta Beauty President Dave Kimbell said in the announcement. “As increasing consumer confidence, the relaxation of restrictions, and a desire for newness drive increased engagement with the beauty category, our differentiated model, combined with our ongoing efforts to create meaningful guest connections, position us well to lead through the category recovery.”
Ulta also anticipates net sales of between $7.7 billion and $7.8 billion for FY 21, up from its prior outlook of between $7.2 billion and $7.3 billion.
The news comes as e.l.f. Beauty reported that net sales soared by 24 percent to $92.7 million for the fourth quarter of fiscal 2021, mainly powered by “strength in eCommerce, international and our national retailers.”
“We’re pleased with our outstanding results and believe that we can continue our business momentum in fiscal 2022 as we advance our transformation to a multi-brand portfolio,” e.l.f. Beauty CFO Mandy Fields said in a previous release.