Ulta Beauty profits surges by 35% in second quarter

Ulta Beauty, a chain of beauty superstores in the US, has witnessed 35% surge in profit for the second quarter, aided by higher sales and operating margin.

Based in Bolingbrook, Illinois, Ulta Beauty posted second quarter net income of $60.8m, as against the same period last year.

Sales for the quarter climbed 22.2% to $734.2m, as against $601m in the prior year. Same-store sales for the quarter rose 9.6%.

Operating margin for the quarter increased to 13.3% from 12.1% last year. E-commerce comparable sales grew 54.9%, representing 130 basis points of the total company comparable sales increase of 9.6%.

Ulta Beauty CEO Mary Dillon said: "A significant improvement in traffic, successful new product and brand launches, and rapid e-commerce growth drove better than expected top line performance."

"As a result, the Ulta team delivered healthy operating margin expansion in the second quarter. We are raising our outlook for the year and now expect to achieve sales and earnings per share growth in the 20% range, reflecting our confidence in continued strong market share gains," Dillon added.

For the first half, net sales increased 22.3% to $1,448m from $1,183.7m in the first six months of fiscal 2013.

Comparable store sales increased 9.2% compared to an increase of 7.6% in the first six months of fiscal 2013.

The company also laid the contours of a long-term strategic plan, with focus on e-commerce sales, new store openings and improving guest loyalty programs.