Ulta Beauty Has Strong Q4 Online, Responds to Coronavirus Threat

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An Ulta Beauty shop in New York (photo credit: Shutterstock)

“We’re actually excited about being able to provide this to our guests due to the fact that they reacted extremely favorably to it,” Kimbell stated. “Our guests were interested across little markets, big markets and everything in between. In spite of the success we had more than completion of last year, it’s still relatively small part of our ecommerce business. And we’re attempting to understand the incrementality of BOPIS.”

Dillion said one boost to ecommerce was the shift of a warehouse in Romeoville, IL to a quick fulfillment center, while Ulta also enhanced the productivity of its full-service (retail and online) facilities. “This resulted in faster ecommerce order processing for our visitors and more consistent on-time deliveries to our stores in addition to better in-stocks during the holiday,” she said.

On the coronavirus effect, Dillion said Ulta Beauty has actually seen less store traffic, differing by market. “On the other hand, our ecommerce business has continued to carry out strongly,” she stated. “And I ‘d say that’s real broadly truly even including impacted areas. So, we’re keeping a close eye on all of this. It’s truly too early to tell how it’s going to play out, however so far that’s our evaluation of the situation.”

For the quarter, Ulta Beauty reported $2.31 billion in profits, $12.42 million over the Seeking Alpha expert quote, while EPS was $3.89, compared to the quote figure of $3.73. For the complete year, earnings was $7.39 billion, up 10.1% from $6.72 billion in 2018, and net earnings increased 7.2% to $705.9 million.

Dave Kimbell, president of Ulta Beauty, stated management was “delighted with the efficiency” of store teams in performing on the BOPIS method, which was presented in Q2 2019.

Kimbell included Ulta Beauty has actually seen a “great accessory rate” for BOPIS from customers that purchase additional items in store when choosing up their online orders. “So total we’re delighted, but it’s early,” he stated. “And we’re anticipating finding out a lot more about methods to leverage this with our visitors through 2020.”

Ulta Beauty saw ecommerce sales increase 20% to 30% during its financial Q4 2019 that ended Feb. 1, 2020, assisted by a shop pickup rollout chain-wide, while also taking steps in store to address the growing coronavirus threat.

Scott Settersten, CFO of Ulta Beauty, put things in point of view by keeping in mind that a contrast to Q4 2018 absolutely made ecommerce look much better, as shop traffic was improved in Q4 that year by a “reverse channel shift” where clients gathered to shops to “see and experience high-profile launches from numerous digitally native brand names.”

“This year, the rollout of buy online, pickup in shop and enhancements made to our app were likewise factors to the ecommerce channels outperformance,” Settersten stated.

Just this week, Ulta revealed reduced hours of operation, the momentary closing of some stores and discontinuing hair services.

“With increased circulation center shipping capacity, buy online, pickup in shop choices available at every shop and enhanced app and mobile platforms in location, including a brand-new virtual waiting room to improve the guest experience on Black Friday, Ulta Beauty was well-positioned for moving customer preferences this holiday and delivered strong double-digit development in ecommerce sales,” CEO Mary Dillon told experts on a revenues call.


Dillion said one boost to ecommerce was the transition of a circulation center in Romeoville, IL to a fast fulfillment center, while Ulta likewise enhanced the productivity of its full-service (retail and online) facilities. On the coronavirus effect, Dillion stated Ulta Beauty has actually seen less shop traffic, differing by market. Kimbell included Ulta Beauty has seen a “great accessory rate” for BOPIS from customers that buy additional products in shop when picking up their online orders. For the quarter, Ulta Beauty reported $2.31 billion in profits, $12.42 million over the Seeking Alpha analyst estimate, while EPS was $3.89, compared to the estimate figure of $3.73.

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