Ulta Beauty Inc. has announced financial results for the first quarter ended May 2, 2020. Net sales decreased 32.7% to $1,173.2 million compared to $1,743.0 million in the first quarter of fiscal 2019 due to the impact of COVID-19. The company ended the first quarter of fiscal 2020 with $1,153.5 million in cash, cash equivalents and short-term investments.
 
During the first quarter of fiscal 2020, Ulta opened 11 new stores. The company ended the first quarter of fiscal 2020 with 1,264 stores and square footage of 13,294,607, representing a 5.7% increase in square footage compared to the first quarter of fiscal 2019.
 
“Fiscal 2020 started off well, with good growth in comparable store sales, market share, and our Ultamate Rewards loyalty program through mid-March. However, the rapid escalation of COVID-19 resulted in significant disruption to our operations. For much of the first quarter, Ulta Beauty operated as a digital-only business, and while e-commerce sales exceeded our expectations, it was not enough to fully offset the impact of our store closings,” said Mary Dillon, CEO. “As we have navigated the pandemic, our priority for every decision has been to protect the well-being of our associates and guests, and I am incredibly proud and appreciative of how quickly our teams adjusted to the dynamic environment.”
 
Given the uncertainty related to the COVID-19 pandemic, the company withdrew its guidance for fiscal 2020 on March 17, 2020 and is not providing an earnings outlook at this time.
 
With safety continuing to guide the company’s decisions, Ulta has begun to reopen stores. Currently, more than 800 stores offer curbside pickup and more than 330 stores are open to guests. While it’s still early, the company says it has seen stronger-than-expected sales in reopened stores.

Image courtesy of Ulta Beauty Inc.