Net Sales of $3.5 Billion Compared to $3.6 Billion in the Year-Ago Quarter
Comparable Sales Increased 1.5%
Net Income of $393.3 Million or $8.46 Per Diluted Share
BOLINGBROOK, Ill., March 13, 2025 --( BUSINESS WIRE )--Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period ("fourth quarter") and fifty-two-week period ("fiscal year") ended February 1, 2025, compared to the comparable fourteen-week and fifty-three-week periods ended February 3, 2024, both of which contained one extra week ("53 rd week").
|
13 Weeks Ended |
14 Weeks Ended |
52 Weeks Ended |
53 Weeks Ended |
||||||||||
|
February 1, |
February 3, |
February 1, |
February 3, |
||||||||||
|
(Dollars in millions, except per share data) |
2025 |
2024 |
2025 |
2024 |
|||||||||
|
Net sales |
$ |
3,487.6 |
$ |
3,554.3 |
$ |
11,295.7 |
$ |
11,207.3 |
|||||
|
Comparable sales (1) |
1.5% |
2.5% |
0.7% |
5.7% |
|||||||||
|
Gross profit (as a percentage of net sales) |
38.2% |
37.7% |
38.8% |
39.1% |
|||||||||
|
Selling, general and administrative expenses |
$ |
815.6 |
$ |
820.4 |
$ |
2,808.6 |
$ |
2,694.6 |
|||||
|
Operating income (as a percentage of net sales) |
14.8% |
14.5% |
13.9% |
15.0% |
|||||||||
|
Diluted earnings per share |
$ |
8.46 |
$ |
8.08 |
$ |
25.34 |
$ |
26.03 |
|||||
|
New store openings, net |
8 |
11 |
60 |
30 |
|||||||||
|
__________________________ |
|||||||||||||
|
(1) Comparable sales are calculated based on the comparable number of weeks from the prior year. |
|||||||||||||
"The Ulta Beauty team delivered stronger-than-expected revenue, profitability, and diluted EPS in the fourth quarter. I am incredibly proud of our team’s collective impact on the business and the care they showed our guests throughout the holiday season, positioning us to finish fiscal 2024 ahead of our expectations," said Kecia Steelman, president and chief executive officer.
Steelman continued, "I am incredibly optimistic about the future of Ulta Beauty, as I believe we have the right elements to drive our success – a strong business model, an ambitious long-term plan, and passionate associates who bring our brand to life for our guests every day. Fiscal 2025 will be a pivotal year as we make purposeful investments to fuel our future growth and move quickly to optimize our business. While it will take time to see the impact of these efforts, we are confident these investments will help reignite our momentum and unlock sustained growth and long-term value for our shareholders."
Fourth Quarter of Fiscal 2024 Compared to Fourth Quarter of Fiscal 2023
Full Year of Fiscal 2024 Compared to Full Year of Fiscal 2023
Balance Sheet
Cash and cash equivalents at the end of the fourth quarter of fiscal 2024 totaled $703.2 million.
Merchandise inventories, net at the end of the fourth quarter of fiscal 2024 increased 13.0% to $2.0 billion compared to $1.7 billion at the end of the fourth quarter of fiscal 2023. The increase was primarily due to inventory to support new brand launches, intentional strategic investments to improve merchandise in-stocks in key categories post-holiday, and the addition of 60 net new stores since February 3, 2024.
As previously announced, during the third quarter of fiscal 2024, the Company borrowed $199.7 million on its revolving credit facility to support ongoing capital allocation priorities, including share repurchases and capital expenditures, and merchandise inventory growth. During the fourth quarter of fiscal 2024, the Company repaid all amounts borrowed, together with interest due. At the end of the fourth quarter of fiscal 2024, the Company had no borrowings outstanding under the revolving credit facility.
Share Repurchase Program
During the fourth quarter of fiscal 2024, the Company repurchased 620,053 shares of its common stock at a cost of $249.5 million. During fiscal 2024, the Company repurchased 2.5 million shares of its common stock at a cost of $1.0 billion. As of February 1, 2025, $2.7 billion remained available under the $3.0 billion share repurchase program announced in October 2024.
Store Update
During the fourth quarter of fiscal 2024, the Company opened nine new stores, remodeled five stores, and closed one store. During fiscal 2024, the Company opened 66 new stores, relocated two stores, remodeled 41 stores, and closed six stores. At the end of the fourth quarter of fiscal 2024, the Company operated 1,445 stores totaling 15.1 million square feet.
Fiscal 2025 Outlook
For fiscal 2025, the Company plans to:
|
FY25 Outlook |
|||
|
Net sales |
$11.5 billion to $11.6 billion |
||
|
Comparable sales |
0% to 1% |
||
|
New stores, net |
approximately 60 |
||
|
Remodel and relocation projects |
40-45 |
||
|
Operating margin |
11.7% to 11.8% |
||
|
Diluted earnings per share |
$22.50 to $22.90 |
||
|
Share repurchases |
approximately $900 million |
||
|
Interest income |
approximately $6 million |
||
|
Effective tax rate |
approximately 24.5% |
||
|
Capital expenditures |
$425 million to $500 million |
||
|
Depreciation and amortization expense |
$290 million to $300 million |
Conference Call Information
A conference call to discuss fourth quarter of fiscal 2024 results is scheduled for today, March 13, 2025 at 4:30 p.m. ET / 3:30 p.m. CT. Investors and analysts who are interested in participating in the call are invited to dial (877) 704-4453. Participants may also listen to a real-time audio webcast of the conference call by visiting the Investor Relations section of the Company’s website located at https://www.ulta.com/investor . A replay will be made available online approximately two hours following the live call for a period of 30 days.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the Company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty. All in One Place ® . Today, Ulta Beauty operates 1,445 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. For more information, visit www.ulta.com .
Forward‑Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect the Company’s current views with respect to, among other things, future events and financial performance. These statements can be identified by the use of forward-looking words such as "outlook," "believes," "expects," "plans," "estimates," "targets," "strategies" or other comparable words. Any forward-looking statements contained in this press release are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates, targets, strategies or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation:
The Company’s filings with the SEC are available at www.sec.gov . Except to the extent required by the federal securities laws, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
|
Exhibit 1 |
||||||||||||||
|
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data) |
||||||||||||||
|
13 Weeks Ended |
14 Weeks Ended |
|||||||||||||
|
February 1, |
February 3, |
|||||||||||||
|
2025 |
2024 |
|||||||||||||
|
(Unaudited) |
(Unaudited) |
|||||||||||||
|
Net sales |
$ |
3,487,619 |
100.0 |
% |
$ |
3,554,298 |
100.0 |
% |
||||||
|
Cost of sales |
2,153,967 |
61.8 |
% |
2,213,734 |
62.3 |
% |
||||||||
|
Gross profit |
1,333,652 |
38.2 |
% |
1,340,564 |
37.7 |
% |
||||||||
|
Selling, general and administrative expenses |
815,599 |
23.4 |
% |
820,360 |
23.1 |
% |
||||||||
|
Pre-opening expenses |
1,732 |
0.0 |
% |
3,114 |
0.1 |
% |
||||||||
|
Operating income |
516,321 |
14.8 |
% |
517,090 |
14.5 |
% |
||||||||
|
Interest income, net |
(1,994 |
) |
(0.1 |
%) |
(3,328 |
) |
(0.1 |
%) |
||||||
|
Income before income taxes |
518,315 |
14.9 |
% |
520,418 |
14.6 |
% |
||||||||
|
Income tax expense |
125,045 |
3.6 |
% |
126,049 |
3.5 |
% |
||||||||
|
Net income |
$ |
393,270 |
11.3 |
% |
$ |
394,369 |
11.1 |
% |
||||||
|
Net income per common share: |
||||||||||||||
|
Basic |
$ |
8.50 |
$ |
8.13 |
||||||||||
|
Diluted |
$ |
8.46 |
$ |
8.08 |
||||||||||
|
Weighted average common shares outstanding: |
||||||||||||||
|
Basic |
46,270 |
48,500 |
||||||||||||
|
Diluted |
46,476 |
48,795 |
||||||||||||
|
Exhibit 2 |
||||||||||||||
|
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data) |
||||||||||||||
|
52 Weeks Ended |
53 Weeks Ended |
|||||||||||||
|
February 1, |
February 3, |
|||||||||||||
|
2025 |
2024 |
|||||||||||||
|
(Unaudited) |
||||||||||||||
|
Net sales |
$ |
11,295,654 |
100.0 |
% |
$ |
11,207,303 |
100.0 |
% |
||||||
|
Cost of sales |
6,908,401 |
61.2 |
% |
6,826,203 |
60.9 |
% |
||||||||
|
Gross profit |
4,387,253 |
38.8 |
% |
4,381,100 |
39.1 |
% |
||||||||
|
Selling, general and administrative expenses |
2,808,592 |
24.9 |
% |
2,694,561 |
24.0 |
% |
||||||||
|
Pre-opening expenses |
13,689 |
0.1 |
% |
8,510 |
0.1 |
% |
||||||||
|
Operating income |
1,564,972 |
13.9 |
% |
1,678,029 |
15.0 |
% |
||||||||
|
Interest income, net |
(15,094 |
) |
(0.1 |
%) |
(17,622 |
) |
(0.2 |
%) |
||||||
|
Income before income taxes |
1,580,066 |
14.0 |
% |
1,695,651 |
15.1 |
% |
||||||||
|
Income tax expense |
378,948 |
3.4 |
% |
404,646 |
3.6 |
% |
||||||||
|
Net income |
$ |
1,201,118 |
10.6 |
% |
$ |
1,291,005 |
11.5 |
% |
||||||
|
Net income per common share: |
||||||||||||||
|
Basic |
$ |
25.44 |
$ |
26.18 |
||||||||||
|
Diluted |
$ |
25.34 |
$ |
26.03 |
||||||||||
|
Weighted average common shares outstanding: |
||||||||||||||
|
Basic |
47,207 |
49,304 |
||||||||||||
|
Diluted |
47,404 |
49,596 |
||||||||||||
|
Exhibit 3 |
||||||
|
Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands) |
||||||
|
February 1, |
February 3, |
|||||
|
2025 |
2024 |
|||||
|
(Unaudited) |
||||||
|
Assets |
||||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
$ |
703,201 |
$ |
766,594 |
||
|
Receivables, net |
223,334 |
207,939 |
||||
|
Merchandise inventories, net |
1,968,214 |
1,742,136 |
||||
|
Prepaid expenses and other current assets |
129,113 |
115,598 |
||||
|
Prepaid income taxes |
4,946 |
4,251 |
||||
|
Total current assets |
3,028,808 |
2,836,518 |
||||
|
Property and equipment, net |
1,239,295 |
1,182,335 |
||||
|
Operating lease assets |
1,609,870 |
1,574,530 |
||||
|
Goodwill |
10,870 |
10,870 |
||||
|
Other intangible assets, net |
204 |
510 |
||||
|
Deferred compensation plan assets |
47,951 |
43,516 |
||||
|
Other long-term assets |
64,695 |
58,732 |
||||
|
Total assets |
$ |
6,001,693 |
$ |
5,707,011 |
||
|
Liabilities and stockholders’ equity |
||||||
|
Current liabilities: |
||||||
|
Accounts payable |
$ |
563,761 |
$ |
544,001 |
||
|
Accrued liabilities |
380,241 |
382,468 |
||||
|
Deferred revenue |
500,585 |
436,591 |
||||
|
Current operating lease liabilities |
288,114 |
283,821 |
||||
|
Accrued income taxes |
46,777 |
11,310 |
||||
|
Total current liabilities |
1,779,478 |
1,658,191 |
||||
|
Non-current operating lease liabilities |
1,635,120 |
1,627,271 |
||||
|
Deferred income taxes |
42,593 |
85,921 |
||||
|
Other long-term liabilities |
56,149 |
56,300 |
||||
|
Total liabilities |
3,513,340 |
3,427,683 |
||||
|
Commitments and contingencies |
||||||
|
Total stockholders’ equity |
2,488,353 |
2,279,328 |
||||
|
Total liabilities and stockholders’ equity |
$ |
6,001,693 |
$ |
5,707,011 |
||
|
Exhibit 4 |
||||||||
|
Ulta Beauty, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) |
||||||||
|
52 Weeks Ended |
53 Weeks Ended |
|||||||
|
February 1, |
February 3, |
|||||||
|
2025 |
2024 |
|||||||
|
(Unaudited) |
||||||||
|
Operating activities |
||||||||
|
Net income |
$ |
1,201,118 |
$ |
1,291,005 |
||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
|
Depreciation and amortization |
267,042 |
243,840 |
||||||
|
Non-cash lease expense |
310,636 |
332,754 |
||||||
|
Deferred income taxes |
(43,328 |
) |
30,575 |
|||||
|
Stock-based compensation expense |
42,787 |
48,246 |
||||||
|
Loss on disposal of property and equipment |
11,566 |
11,419 |
||||||
|
Change in operating assets and liabilities: |
||||||||
|
Receivables |
(15,395 |
) |
(8,517 |
) |
||||
|
Merchandise inventories |
(226,078 |
) |
(138,685 |
) |
||||
|
Prepaid expenses and other current assets |
(13,515 |
) |
14,648 |
|||||
|
Income taxes |
34,772 |
45,367 |
||||||
|
Accounts payable |
30,297 |
(20,873 |
) |
|||||
|
Accrued liabilities |
6,303 |
(62,238 |
) |
|||||
|
Deferred revenue |
63,994 |
41,914 |
||||||
|
Operating lease liabilities |
(333,835 |
) |
(338,105 |
) |
||||
|
Other assets and liabilities |
2,241 |
(15,084 |
) |
|||||
|
Net cash provided by operating activities |
1,338,605 |
1,476,266 |
||||||
|
Investing activities |
||||||||
|
Capital expenditures |
(374,458 |
) |
(435,267 |
) |
||||
|
Other investments |
(8,631 |
) |
(6,158 |
) |
||||
|
Net cash used in investing activities |
(383,089 |
) |
(441,425 |
) |
||||
|
Financing activities |
||||||||
|
Borrowings from credit facility |
199,700 |
195,400 |
||||||
|
Payments on credit facility |
(199,700 |
) |
(195,400 |
) |
||||
|
Repurchase of common shares |
(1,003,328 |
) |
(995,738 |
) |
||||
|
Stock options exercised |
12,339 |
12,176 |
||||||
|
Purchase of treasury shares |
(23,761 |
) |
(22,562 |
) |
||||
|
Debt issuance costs |
(4,159 |
) |
— |
|||||
|
Net cash used in financing activities |
(1,018,909 |
) |
(1,006,124 |
) |
||||
|
Net decrease in cash and cash equivalents |
(63,393 |
) |
28,717 |
|||||
|
Cash and cash equivalents at beginning of year |
766,594 |
737,877 |
||||||
|
Cash and cash equivalents at end of year |
$ |
703,201 |
$ |
766,594 |
||||
|
Exhibit 5 |
||||||||
|
Ulta Beauty, Inc. Store Update |
||||||||
|
Total stores open |
Number of stores |
Number of stores |
Total stores |
|||||
|
at beginning of the |
opened during the |
closed during the |
open at |
|||||
|
Fiscal 2024 |
quarter |
quarter |
quarter |
end of the quarter |
||||
|
1 st Quarter |
1,385 |
12 |
2 |
1,395 |
||||
|
2 nd Quarter |
1,395 |
17 |
1 |
1,411 |
||||
|
3 rd Quarter |
1,411 |
28 |
2 |
1,437 |
||||
|
4 th Quarter |
1,437 |
9 |
1 |
1,445 |
||||
|
Gross square feet for |
||||||||
|
Total gross square |
stores opened or |
Gross square feet for |
Total gross square |
|||||
|
feet at beginning of |
expanded during the |
stores closed |
feet at end of the |
|||||
|
Fiscal 2024 |
the quarter |
quarter |
during the quarter |
quarter |
||||
|
1 st Quarter |
14,515,593 |
114,786 |
15,615 |
14,614,764 |
||||
|
2 nd Quarter |
14,614,764 |
178,624 |
10,800 |
14,782,588 |
||||
|
3 rd Quarter |
14,782,588 |
258,320 |
20,083 |
15,020,825 |
||||
|
4 th Quarter |
15,020,825 |
100,693 |
11,348 |
15,110,170 |
|
Exhibit 6 |
||||
|
Ulta Beauty, Inc. Sales by Category |
||||
|
The following tables set forth the approximate percentage of net sales by primary category: |
||||
|
13 Weeks Ended |
14 Weeks Ended |
|||
|
February 1, |
February 3, |
|||
|
2025 |
2024 |
|||
|
Cosmetics |
36% |
39% |
||
|
Skincare |
23% |
22% |
||
|
Haircare |
19% |
19% |
||
|
Fragrance |
17% |
15% |
||
|
Services |
3% |
3% |
||
|
Other |
2% |
2% |
||
|
100% |
100% |
|||
|
52 Weeks Ended |
53 Weeks Ended |
|||
|
February 1, |
February 3, |
|||
|
2025 |
2024 |
|||
|
Cosmetics |
39% |
41% |
||
|
Skincare |
23% |
22% |
||
|
Haircare |
19% |
20% |
||
|
Fragrance |
13% |
11% |
||
|
Services |
4% |
4% |
||
|
Other |
2% |
2% |
||
|
100% |
100% |
Certain sales departments were reclassified between categories in the prior year to conform to current year presentation, including moving the bath category from Fragrance to Skincare.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313496800/en/
Contacts
Investor Contact:
Kiley Rawlins, CFA
Senior Vice President, Investor Relations
[email protected]
Media Contact:
Crystal Carroll
Senior Director, Public Relations
[email protected]