ULTA SHOWS HOW ATTRACTIVE THE BEAUTY MARKET CAN BE

Ulta Salon, a specialty beauty retailer, is expanding its store count across the U.S. while reporting a 12.5% same-store sales increase during the fourth quarter. There were several factors attributed to their performance. Ulta’s gross margins got a lift by their shift from coupons to more targeted offers. They also managed to boost traffic into the stores. They added 100 new stores in 2015, seeing net revenues increase 21% to reach $1.27 billion. With its plans to add 100 more stores in 2016, taking them to over 1,000 stores total, it will build on its success in small markets and downtown/urban locations.

The beauty segment is attractive to department store retailers, because shoppers make frequent repeat visits when they run out of a certain product. Several retailers, such as Kohl’s and Sephora-Inside-JC Penney’s, have specific plans to expand their beauty departments.

Accelerated Analytics’ has a broad base of beauty vendor customers, such as L’Oreal, LVMH, Parlux Fragrances, Anastasia Beverly Hills, Chanel, Coty, Estee Lauder and more. Learn about our beauty industry reporting solutions at http://www.acceleratedanalytics.com/beauty/

Source: CNBC

MACY’S ANNOUNCES Q4 SALES DECLINED 5.2%; LOOKS FORWARD to 2016 EXPANSION

For the period ending January 30, 2016, Macy’s total sales declined 5.2% to $8.87 billion. Same-store sales fell 4.3%, slightly less than the 4.7% decrease analysts were expecting. Macy’s did announce it had another year of double-digit growth in its online business, attributed to high increases in mobile traffic and conversions.  In looking back on the year, chairman and CEO, Terry J. Lundgren, pointed out many expansion initiatives. “We expanded our online capacity with a new state-of-the-art fulfillment center in Tulsa, Oklahoma,” he said. “We announced licensed department arrangements with companies including LensCrafters, Men’s Wearhouse and Best Buy to add new categories to the Macy’s store assortment. We completed the acquisition of Bluemercury, which added capabilities to our signature beauty business. We developed and launched Macy’s Backstage, which will be piloted as an in-store concept this spring. And we began initial testing of online selling in China in a new joint venture with a Hong Kong-based partner.” Macy’s has $400 million of planned cost savings and will have more conservative inventory planning in 2016 to improve its operating margins. It does expect to see a 1% comp-stores decline in 2016.

Source: Chain Store Age

DILLARD’S SALES AND PROFITS DROP IN Q4 2015

Dillard’s announced a 35.6% drop in fourth quarter profit. For the period ending January 30, revenue was $2.07 billion for the fourth quarter, down from $2.1 billion a year ago. Same store sales declined 2%. In 2015, Dillard’s opened three new stores in Murray, UT, Slidell, LA and Cincinnati, OH. They also closed two clearance stores. The Southern retailer also announced the upcoming closure of their Aiken, SC location in Q1 of this year. As of now, Dillard’s operated 273 stores and 24 clearance centers over 29 states.

"The fourth quarter was difficult. As sales came in less than planned, we worked hard to control our inventory during an unusually competitive environment," said Dillard’s CEO William T. Dillard II. "Sales were particularly weak on the Southern border and in the energy producing regions. Higher markdowns affected gross margin, but we did the right thing as we move on to 2016.”

Source: Retailing Today

WARM WEATHER HELPS HOME DEPOT SALES RISE ALMOST 10% IN 4TH QUARTER, AS HOME PRICES INCREASE AND DEMAND FOR NEW HOME CONSTRUCTION STARTS 2016 WITH SLOW GROWTH

The Home Depot’s fourth-quarter sales included an 8.9% sales increase in US stores that have been open for at least one year. This is despite the challenges facing the rest of the retail industry. Sales were strong the entire quarter, but warm weather in December brought in a sales spike – Home Depot attributes $100 million in sales growth to the milder weather. High sales were seen for power washers and pressure-treated lumber by homeowners building decks.

Home prices also rose in December, showing the strongest gains since July 2014. The Home Price Index showed a rise of 5.2% in the 12 months ending in December, versus a 5.2% in November. The national median sale price for a home in December was $213,800, 8.2% from the previous year. There is a limited inventory of homes for sale, and demand for new homes is likely to drive more new construction and help keep a ceiling on the rising home prices, although January 2016 was a slow start for new home construction for the year.

Accelerated Analytics helps Home Depot vendors, such as WM Barr, Hillman Group, Alexandria Molding, and CPG Building Products to manage their sales and inventory data to drive results. Our vendors use our analytical measures, such as sell through, inventory shortages, out of stocks, weeks of supply and consumer purchasing trends, to take quick actions to ensure they are optimizing inventory and growing sales.

Source: Wall St. Journal

Ulta Beauty Posts 11.1% Fourth Quarter Growth in 2014

Ulta Beauty announced fourth quarter growth in same store sales at a very high 11.1% and e-commerce growth of 55.2%. The 11.1% same store increase was after a prior year gain of 9.2%.

The company opened 100 new stores last year and are planning another 100 new stores for 2015. It is forecasting same store sales growth of 6% to 8% and e-commerce growth of 40%.

“Ulta Beauty wrapped up a very strong year of sales and profit growth with an excellent fourth quarter, which we are proud to celebrate as our first billion dollar sales quarter,” said Ulta CEO Mary Dillon. “Our best comparable sales increase of the year was driven by accelerating traffic growth, continued strength in prestige and mass color cosmetics, a successful holiday selling season, execution of more effective marketing and CRM strategies, a double-digit comp in our salon business, and a 55% comparable sales increase in our e-commerce business.”

Source: Retailing Today

Stage Stores Reports Positive Holiday Sales

Stage Stores, who operate under store banners such a Beall’s, Goody’s, Palais Royal, Peebles and Stage, offers moderately priced brand name apparel, accessories, cosmetics and footwear. They are reporting a strong holiday sales season for 2014. Official fourth quarter and full year 2014 results will be reported March 3, but Stage is reporting same store sales for the nine week period ending January 3, 2015 at an increase of 6.5%.

“We are very pleased with our holiday sales and margin performance. Footwear, women’s and cosmetics categories were especially strong. Our customers responded well to our holiday assortment, marketing, promotions and strategic initiatives in store and in our direct-to-consumer business, “ said Michael Glazer, President and CEO at Stage Stores, Inc.

Source: Retailing Today