Ulta’s Upgraded FY2022 Outlook A Good Sign For Holiday Beauty
Ulta has increased its fourth quarter and fiscal 2022 full-year outlook on strong third-quarter comparable store sales growth of 14.5%. Mass beauty is outperforming prestige, but CEO David Kimbell said “it’s hard to know for certain if we are starting to see consumers trade down.”
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Consumers continued to spend more on beauty products in January 2023 in US mass retail doors despite rising prices across face makeup, eye makeup and lipstick segments, according to market intelligence and consulting firm Catalina Marketing.
One likely reason for tighter spending plans is consumers aren’t expecting “deep discounts” offered in US earlier in 19 pandemic, shows Simon-Kucher survey. Four times as many than in 2021 expect 10% or less discounts.
Prestige beauty sales should be strong through year-end with high-income consumer base less likely to feel squeeze of inflation, NPD Group forecasts. In 2022 first half, US consumers with more than $100,000 household incomes spent nearly $9bn on beauty products, a 14% increase.