Ulta Beauty Sales Dipped 17% for the Year

Ulta Beauty, which Thursday revealed that president Dave Kimbell will succeed current chief executive officer Mary Dillon in June, posted a slight sales dip for the holiday period.

For the quarter ended Jan. 30, Ulta’s net sales dipped 4.6 percent year-over-year to $2.2 billion, compared with $2.3 billion the prior year. Net income was $171.5 million, a nearly 22 percent dip from the previous-year’s $219.5 million.

For the full year, Ulta’s sales fell 16.8 percent, to $6.2 billion, largely due to the impacts of the coronavirus pandemic, which caused it to close stores for a period of time. Net income was $175.8 million, a 75 percent year-over-year drop from $705.9 million.

Dillon said Ulta’s results were better than expected, and showed improving trends in consumer demand in the most recent quarter.

“Fiscal 2020 was a difficult year, and I am proud of how our teams navigated the unprecedented challenges with agility and purpose,” Dillon said. “We begin fiscal 2021 with a strong foundation in place and good operational momentum. We are strategically investing in our business to drive further market share gains, and, as separately announced today, we are beginning to execute a thoughtful succession plan that ensures we continue to benefit from strong, experienced leadership for the next chapter of growth.

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“We are encouraged by the momentum we are seeing in store traffic trends,” Dillon said. “Although our visibility as to when demand will fully recover is limited, we are confident our business will continue to strengthen in fiscal 2021, as COVID-19 vaccines become more accessible.”

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