Ulta Beauty continues to resonate with the American market with gross sales surging 65.2% within the … [+] first-quarter of 2021.
Courtesy Ulta Beauty
Beauty, the biggest U.S. magnificence retailer promoting cosmetics (make-up), perfume, skincare merchandise, hair care merchandise and salon providers, continues to resonate with the American market with gross sales surging 65.2% within the first-quarter (Q1) of 2021 as in comparison with final yr. Net gross sales got here in at $1.9 billion for the quarter, pushed primarily by a rise in transactions of 53% and an virtually 9% improve in common ticket (how a lot a buyer spends). The magnificence retailer has been on a progress trajectory beating out 2019 gross sales by 7%.
According to the Ulta Beauty earnings name, the web gross sales improve was primarily as a result of favorable impression within the U.S. from enhancing shopper confidence, authorities stimulus funds and the easing of COVID-19 restrictions. Mary Dillon, CEO of Ulta Beauty, stated, “The Ulta Beauty crew delivered an impressive begin to the yr, with gross sales and earnings exceeding fiscal 2020 and financial 2019 first quarter ranges.”
Mary Dillon transfers the helm to Dave Kimbell
Dillion is stepping down as CEO in June and can transfer to an government chair place on the firm. Since her appointment as CEO eight years in the past, the compounded annual progress price by 2020 was 15.7%, a powerful tenure efficiency. In the standard Mary Dillion model of servant management she stated, “I need to thank my management crew for his or her collaboration, agility and dedication to our associates and company. And I need to thank all of you within the investor neighborhood in your curiosity and help.”
Mary Dillon, CEO of Ulta Beauty, transfers the helm to Dave Kimbell, present president of Ulta … [+] Beauty, in June as she strikes to government chair place.
Courtesy Ulta Beauty
Succession plans have been in place for fairly some time as Dave Kimbell, president of Ulta Beauty, will transition into the position of CEO. Kimbell has been described as a results-driven, inclusive chief and has been on Dillon’s crew since 2014 when he joined Ulta as its chief advertising officer. A yr later he was named chief merchandising and advertising officer earlier than being elevated to the president position in 2019. Kimbell famous Dillion’s accomplishments as CEO, saying, “Under your (Dillion’s) management, Ulta Beauty established a profitable partaking tradition, grew to become the biggest U.S magnificence retailer, joined the fortune 500 and tripled its market cap.”
Kimbell mentioned Q1 efficiency, stating, “We have emerged from 2020 with robust momentum in our gross sales developments, market share positive factors, and shopper sentiment.” Kimbell is assured that the corporate is positioned to proceed to guide within the magnificence class, including, “Increasing shopper confidence, the relief of restrictions, and a want for newness will drive elevated engagement with the wonder class.”
Dave Kimbell will make a wonderful substitute and has been succession-planned for the previous seven years, so an understanding of the client and tradition has already been established. His former background with PepsiCo
, Seventh Generation, and U.S. Cellular can be helpful in his new position.
Soaring firm earnings
Gross revenue elevated 148% in Q1 in comparison with the earlier yr because of increased gross sales, leverage in mounted prices, enchancment in merchandise margins, decrease salon bills and favorable channel combine shifts. Skincare, hair, perfume and tub had been increased than final yr whereas spending within the cosmetics (make-up) class was down. Kimbell was optimistic about colour cosmetics, stating, “Engagement with social media platforms like TikTok are bringing new life to the colour beauty class, partaking youthful audiences, driving developments and reinvigorating trial and utilization.” These drivers and the expanded pipeline of newness in Q2 will deliver a optimistic tempo to the make-up class.
Salon providers which represented 4% of complete internet gross sales in 2020 was down to three% this yr in Q1. Salon providers had been on the decline previous to the pandemic with gross sales in 2019 at 5% of complete gross sales, down from 6% in 2018.
Net revenue was a loss in 2020 as a result of closure of many shops all through the pandemic, nonetheless, Q1 2021 was 20% increased than the 2019 ranges making a big comeback from final yr. For the quarter, on-line orders picked up in retailer (BOPIS) elevated to about 16% of complete e-commerce gross sales in comparison with about 4% final yr.
Broad enchantment throughout many consumers
The Target and Ulta Beauty Strategic Partnership was introduced in November 2020. www.goal.com
Courtesy of Target
Ulta Beauty at present provides over 25,000 magnificence merchandise from 500 suppliers together with its personal personal label model, and it resonates with a various group of customers by promoting a broad vary of merchandise and worth factors. Ulta’s over 32 million Ultimate Rewards membership continues to develop and the model will quickly have entry to the over 75 million Target
Circle members as a part of the Ulta and Target strategic partnership introduced final November by each firms. The Ulta Beauty shops will open in late summer time in Target.
Ulta Beauty invests in bodily retail
Real property exercise within the first quarter of fiscal 2021 included 28 new shops representing a 2.3% improve in sq. footage in comparison with the primary quarter of fiscal 2020. Ulta Beauty will start to roll out its Target and Ulta Beauty retailer ideas later this yr. Currently, Ulta Beauty operates 1,290 retail shops throughout 50 states and likewise distributes its merchandise by its web site, which features a assortment of ideas, tutorials, and social content material.