Ulta Beauty records 22.9% increase in net sales in Q1 2013

US-based beauty products chain store Ulta Beauty has announced its financial results for the first quarter (Q1) of 2013 and recorded an increase of 22.9% in the net sales figures to $582.7m, when compared to $474.1m in the Q1 of 2012.

The company registered increased store sales at 6.7% including the impact of e-commerce sales, compared to an increase of 10.1% in the same quarter of 2012.

In addition, the preopening expenses of the company have recorded an increase from $2.5m in Q1 2012 to $3.2m in Q1 2013.

Ulta Beauty opened 28 new stores in the first quarter of 2013, whereas in 2012 it opened 18 new stores and one store was relocated.

The Q1 2013 operating income increased by 17.8% to $67.7m from $57.4m Q12012, while the net income increased 20.0% to $41.8m, compared to $34.9m for the same quarter last year.

However, Ulta Beauty pointed that the gross profit for the quarter of the year has decreased 100 basis points to 35% from 36.0%in the first quarter 2012; and the Selling, general and administrative expense decreased to 22.8% compared to 23.4% for the same period a year ago.

Ulta Beauty Interim chief executive officer Dennis Eck said the company has performed better than expected in sales and margin.

"We are on track to add 125 stores this year, and continue to drive outstanding new store productivity," Eck added.

"Ulta.com delivered 70% sales growth during the quarter and we are looking forward to launching our redesigned e-commerce platform this fall. The team is executing our growth strategies very well, and our outlook for continued market share gains is excellent."

Merchandise inventories have increased by $110.0m from $332.1m in Q1 2012 to $442.1min Q1 2013.

Ulta Beauty is expecting net sales in the range of $579m to $589m for the second quarter.