Ulta 1Q Profit Misses Analysts’ Expectations — Earnings Review

— SALES: The beauty retailer posted total sales of $2.63 billion, beating analysts expectations of $2.62 billion. The company reported revenue of $2.35 billion for the same period a year earlier.

WHAT WE WATCHED:

— REVENUE GROWTH: Ulta’s revenue growth was driven by increased comparable sales and strong new store performance, it said. Comparable sales increased 9.3% in the period.

— AVERAGE TICKET SALES: The retailer saw a 1.5% decline in average ticket amid an 11% rise in total transaction.

— STORE TRAFFIC: The company’s store traffic remained healthy in the first quarter, with member growth showing continued strength, Chief Executive Dave Kimbell said.

— SELLING, GENERAL AND ADMINISTRATIVE COSTS: Ulta’s total expenses increased 22% to $612.1 million in the quarter.

— DEMAND: Ulta said it raised its inventory levels to meet higher demand for beauty products in the quarter.

— OUTLOOK: The company raised its full-year sales expectations to between $11.0 billion and $11.10 billion, up from a prior forecast for sales in the range of $10.95 billion and $11.05 billion. It also guided for a lower full-year operating margin between 14.5% and 14.8%, down from a prior outlook of up to 15%.

Write to Sabela Ojea at sabela.ojea@wsj.com