Ulta Beauty, Inc. (ULTA) stock is lower today after the largest specialized beauty retailer in the U.S., which has approximately 1,300 stores, announced financial results for the third quarter ending October 31, 2021.
Net sales increased 28.6% to $2 billion, compared to $1.6 billion in the third quarter of fiscal 2020.
Diluted earnings per share also jumped, increasing to $3.94 compared to $1.32 in the third quarter of fiscal 2020.
Easing Covid Restrictions
Ulta attributed its record sales numbers to the "favorable impact from stronger consumer confidence and fewer COVID-19 restrictions compared to the third quarter of fiscal 2020."
The company was able to open six new stores in the quarter, while in the third quarter of 2020 it opened no new stores, and was forced to close two.
Dave Kimbell, Ulta CEO, was quick to praise his team for the results. He said, "This strong third quarter performance reflects the strength and resiliency of the Beauty category, the power of the Ulta Beauty differentiated model, and the impact of our winning culture and team."
Higher Consumer Demand
Kimball also spoke on the added customers that Ulta retained in the quarter. He commented, "For the third quarter, we delivered record sales and earnings, increased our market share, and expanded our Ultamate Rewards loyalty program to nearly 36 million members.”
Ulta's balance sheet health was also reflected in its share buyback program. In the third quarter, the company repurchased 340,668 shares of its common stock at a cost of $126.4 million.
