Ulta Beauty Inc.’s (ULTA) stock price was up by 4.29% as of the market closing on August 25th, 2021. This brought the price per share up to USD$389.90 at the end of the trading day. Subsequent premarket fluctuations saw the stock rise by 4.71%, bringing it up to USD$408.25.
ULTA Stock’s Net Sales
The second quarter of fiscal 2021 saw ULTA stock report net sales in the amount of USD$2 billion. This is a 60.2% increase from the USD$1.2 billion reported for the second quarter of fiscal 2020. This year over year increase was largely driven by the favorable impact from stronger consumer confidence. The difference was further consolidated by the easing up of Covid-19 restrictions over the past year.
Gross Profit Breakdown
Gross profit for the second quarter of fiscal 2021 was reported at USD$798 million, as compared to USD$329 million reported in the prior year quarter. Gross profit increase to 40.6% of net sales for the quarter, up from the 26.8% in the second quarter of fiscal 2020. This year over year increase was primarily attributable to the leverage of fixed costs and improvements in merchandise margins. The year over year was further cemented by a favorable channel mix shift, as well as the leveraging of salon expenses.
ULTA Stock’s SG&A Costs
Selling, general, and administrative costs were up to USD$463.3 million for Q2 2021, as compared to to USD$271.6 million in the second quarter of fiscal 2020. SG&A costs were up to 23.6% of net sales in Q2 2021, an increase from the 22.1% reported for the prior year quarter. The increase was largely facilitated by deleveraging related to higher store payroll and benefits. This, in turn, was a result of less employee retention credits received under the CARES Act, as well as higher marketing expenses. The year over year increase was partially offset by the leveraging of corporate overhead and store expenses due to higher sales.
Net Income Reports
ULTA stock reported net income for the second quarter of fiscal 2021 in the amount of USD$250.9 million. This is up from the USD$8.1 million reported in the prior year quarter. Adjusted net income for the second quarter of fiscal 2020 came in at USD$41.5 million.
Future Outlook for ULTA Stock
The company reported a stellar quarter, evidenced by the record breaking financial reports. ULTA stock is keen to leverage the resources at its disposal to maintain its trajectory of success over the upcoming quarters. Investors are hopeful that management will be able to facilitate significant and sustained increases in shareholder value.
