Ulta Rides Strong Demand for Beauty Products, Reports $10B in Revenue — Retail Bum

Ulta Beauty reported a strong year-end, with record sales and member growth.

The company reported $3.23 billion in Q4 revenue, higher than the $3.03 billion analysts expected. Full-year revenue exceeded $10 billion, while net income increased to more than $1 billion. The revenue growth was driven by double-digit growth across the company’s four key categories, including makeup, haircare, skincare and fragrance, as well as its Ultamate Rewards program, which is now 40 million strong.

Ulta Beauty also benefited from its continued shop-in-shop partnership with Target, which grew by 254 additional locations. The company plans to have 1,500 to 1,700 stores, with an additional 800 Ulta Beauty at Target locations.

While the company largely reported impressive results, its gross margins have remained flat year over year due to shrinkage. Chief Operating Officer Kecia Steelman noted that the company has been investing more in deterrents, such as locked fragrance cabinets, which have helped reduce theft and fraud.

Looking ahead, the company remains optimistic about its growth prospects, with consumers continuing to spend money on affordable luxuries such as makeup and skincare, which is the fastest-growing category.