Ulta Beauty surpasses Q3 earnings estimates
Net income increased 19.5% to $104.6 million, or $1.70 a share, in the quarter ended Oct. 28, compared to $87.6 million, or $1.40 per share, in the year-ago period. Analysts had expected earnings of $1.66 a share.
Net sales increased 18.6% to $1. 34 billion from $1.13 billion last year. The retailer estimated approximately $14 million in lost sales due to Hurricanes Harvey and Irma.
Total same-store sales increased 10.3%, compared to an increase of 16.7% last year, and were driven by 6.0% transaction growth and 4.3% growth in average ticket. The company estimates that Hurricanes Harvey and Irma resulted in approximately 100 basis points of negative impact to comparable stores sales in the third quarter of fiscal 2017.
E-commerce sales grew 62.9% to $119.8 million from $73.6 million last year, representing 370 basis points of the total company comparable sales increase of 10.3%.
“Our third quarter results clearly demonstrate the strength and distinct advantages of the Ulta Beauty business model,” said Mary Dillon, CEO. “We delivered double digit comparable sales growth, in spite of a moderation in the growth rate of our largest category — makeup — and meaningful disruption from hurricanes. We flexed our merchandising and marketing plans, leveraged our consumer insights and CRM platform, and worked with our brand partners to create compelling offers for our guests.”
Ulta expects fourth-quarter sales between $1.93 million to $1.96 million, with a same-store sales increase of 8% to 10%. It estimated fourth-quarter per-share earnings between $2.73 to $2.78. Analysts were looking for earnings of $2.83 a share on sales of $1.93 billion and a same-store sales increase of 9.4%
During the third quarter, the retailer opened 48 stores. It ended the quarter with 1,058 stores.
Celebrate Beauty Brands announces acquisition of Coastal Salt & Soul
Coastal Salt & Soul, a holistic bath and body company specializing in sea-to-skin body care products, has announced it has been acquired by Celebrate Beauty Brands — a subsidiary of Beauty Partners.
The San Diego-based company will relocate its headquarters to Hauppauge, N.Y. Brand creator Alissa Marie Breyer will remain as chief innovation officer and continue to stay on as a minority owner along with early investors Fredrick Fogelman and Teresa Shultz Fogelman. Industry veterans Bruce Kowalsky and Barry Shields have been recruited to ease the transition and accelerate the growth of the brand in specialty bath and body categories while expanding North American and global distribution.
“I’m confident that this sale is the single best path to provide Coastal Salt & Soul with the necessary resources to continue to fund and scale the business as it enters its next phase of growth,” Alisa Marie Beyer, chief innovation officer, said. “Celebrate Beauty Brands is extremely well positioned to build on our already strong momentum and incredible consumer loyalty through increased customer wins and new retailer partnerships. Bruce and Barry are industry superstars with a deep understanding of the beauty space, with hugely successful launches of several iconic products under their belts, including the Defy & Inspire nail brand at Target, and the first at-home gel manicure system, Red Carpet Manicure. They share the same vision as my team and me for the future of Coastal. The brand is set for amazing things.”
Founded in 2015, Coastal Salt & Soul includes a range of body butters, sugar scrubs, soufflé hand creams, bubble bath, body washes and limited-edition hand-poured and botanically scented candles. The company focuses heavily on bringing beachside living to consumers all over the world.
“In three short years, Alisa has created a superstar brand,” remarked Barry Shields, co-founding partner of Beauty Partners, said. “Regularly selling out of top performing SKUs, obtaining numerous consumer and industry awards, Coastal is the exact opportunity we were looking for in the luxury beauty space. They have established a robust retail presence at QVC, as well as their own branded webstore, and with over 300 spas and boutiques. We are eager to get started.”
Palmer’s goes the natural plant-based route with two new products
Palmer’s has developed two new products within its body forming products. The first-to-market Body Firming Sheet Mask and Anti-Oxidant Firming Lotion are part of the brand’s top-selling Coconut Oil Formula line created with certified organic extra virgin fair trade coconut oil.
Each of the products is designed to target problem areas such as upper arms, hips, stomach and buttocks. The Coconut Oil Body Firming Sheet Mask is the first body firming mask on the U.S. market, the New Jersey-based company said. It is intended to fit curvy areas such as thighs, hips, arms and the abdomen, with each of the sachets containing two sheet masks delivering the toning ingredients of Brazilian Guarana and Cupuacu.
“Palmer’s has a rich history with coconut oil that started with our top selling Coconut Oil Formula hair collection. Understanding the many benefits of this incredible ingredient, not only for hair care but skin care as well, we launched our Coconut Oil body care range, which quickly became one of the top-selling coconut body ranges in the U.S.,” Shara Boote, director of marketing at Palmer’s, said. “Now, with the launch of our Coconut Oil Firming line, we are excited to grow our Coconut Oil portfolio and continue innovating in this space; bringing high-quality, natural skincare products to our consumers that offer real results.”
The Coconut Oil Anti-Oxidant Firming Lotion uses plant-based seaweed, sweet almond oil and caffeine to ease fluid retention for a smoother less, dimpled appearance while providing 24-hour moisture, the company said.
Products in Palmer’s Body Firming collection contains more than 94% naturally sourced ingredients and are free from parabens, phthalates, mineral oil, gluten and dyes. Both items are available for purchase in Walmart locations, with the Body Firming Sheets retailing for the suggested price of $6 and the Anti-Oxidant Firming Lotion for the suggested retailing price of $8.