Ulta Posts Beautiful E-Commerce Sales

Ulta posted a remarkable 16.6% rise in same store sales en route to opening its 1000th store this year. For the fourth quarter ended Jan. 28, same store sales were boosted by a 63% surge in online sales. Revenue increased 24.6%.

The beauty retailer recently announced several new initiatives for fiscal 2017. It plans to open its sixth distribution center, this time in Fresno, Calif. The new DC will allow the company to more efficiently serve stores in California, where roughly 10 percent of Ulta stores are located. (104 of 874 stores at end of last year were in California.) 

This spring the company plans to launch Ulta gift cards in major grocery chains across the country, which will allow Ulta to reach thousands of locations with a new point of presence for the brand. Ulta is also leveraging its customer engagement programs to drive sales at the salon. Salon sales increased 15.2% and comps were 8.8%, with strength in hair color and makeup services. 

On the e-commerce front, Ulta.com sales grew 63.4% on top of 44.2% growth last year, contributing 380 basis points to total company comps. This revenue growth was driven almost entirely by increased transactions. While total traffic growth was up almost 63%, mobile traffic rose more than 90%, driven by growth in digital marketing paid channels including search, affiliates, display and Facebook.

Click here for the full article in Retail Leader: "Ulta Redefines The Beauty Category."