Ulta Beauty announced sales were up in the fourth quarter and the year in part due to a successful digital transformation. Sales for the quarter ended Jan. 28 totaled $3.2 billion, an 18.2% increase year over year. Full year sales were up 18.3% to $10.2 billion. The beauty company did not break out ecommerce sales data.

Ulta is No. 51 in the 2022 Digital Commerce 360 Top 1000 database ranking North American web merchants by sales.

Omnichannel grows

Though Ulta didn’t share what percentage of sales were made online, it did say the number of those orders fulfilled by stores increased. 31% of online orders were fulfilled through buy online, pick up in store (BOPIS) and ship from store in 2022. This was a slight increase from 28% of online orders fulfilled this way in 2021.

Ulta plans to open 25 to 30 new stores in fiscal 2023 and remodel or relocate 30 stores throughout the year, CEO Dave Kimbell said.

New digital experiences

Kimbell credited a “phased refresh” of the company’s online store with some of the increased sales from the year and quarter in a call with investors.

Ulta added several virtual try-on tools in 2022, including the GLAMlab Skin Advisor 2.0 for trying on makeup, and the hair try-on tool.

Focusing on loyalty and data in 2023

Ulta added 3 million loyalty members in 2022, reaching a membership of 40.2 million. These rewards members shop at Ulta more frequently, and spend more on average, than non-members, Kimbell said.

In 2023, the beauty chain plans to continue improving its digital offerings, which will further increase membership, Kimbell told investors.

Ulta will also use analytics and customer data to bring back lapsed customers and increase retention, he said.

For the fourth quarter ending Jan. 28, 2023, Ulta reported:

• Net sales increased to $3.2 billion, an 18.2% increase over $2.7 billion the year prior.
• Net income reached $340.8 million, a 17.8% increase from $289.4 million in 2021.
• Ulta opened 12 new stores, relocated one store, and remodeled another 12.

For the year ending Jan. 28, 2023, Ulta reported:

• Net sales increased 18.3% to $10.2 billion, an increase from $8.6 billion in 2021.
• Net income grew 26% to $1.2 billion, up from $958.5 million in 2021.
• Ulta opened 47 new stores, relocated 12 stores, and remodeled 20 stores.

Percentage changes may not align exactly with dollar figures due to rounding.

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