Ulta Beauty Announces Fourth Quarter Fiscal 2024 Results

Rhea-AI Summary

Ulta Beauty (NASDAQ: ULTA) reported Q4 fiscal 2024 results with net sales of $3.5 billion, down 1.9% from $3.6 billion in the year-ago quarter, primarily due to the extra week in fiscal 2023. Comparable sales increased 1.5%, driven by a 3.0% increase in average ticket despite a 1.4% decrease in transactions.

Q4 net income was $393.3 million with diluted EPS of $8.46. For full fiscal 2024, net sales grew 0.8% to $11.3 billion with comparable sales up 0.7%. The company ended the quarter with 1,445 stores and cash reserves of $703.2 million. Merchandise inventory increased 13.0% to $2.0 billion.

During Q4, Ulta repurchased 620,053 shares for $249.5 million, with $2.7 billion remaining under their October 2024 share repurchase program. The company opened 66 new stores, relocated two, remodeled 41, and closed six stores during fiscal 2024.

Positive

• Comparable sales increased 1.5% in Q4 2024
• Gross profit margin improved to 38.2% from 37.7% in Q4
• Operating margin increased to 14.8% from 14.5% in Q4
• Strong cash position of $703.2 million
• Continued store expansion with 66 new stores opened in fiscal 2024

Negative

• Q4 net sales decreased 1.9% to $3.5 billion
• Transaction count declined 1.4% in Q4
• Full-year operating margin declined to 13.9% from 15.0%
• Inventory levels up 13.0%, potentially indicating overstocking
• Full-year net income decreased from $1.3 billion to $1.2 billion

Insights

Financial Analyst

Ulta Beauty delivered mixed Q4 results that came in ahead of expectations, showing resilience amid slowing industry dynamics. The retailer posted $3.5 billion in revenue (down 1.9% YoY) with comparable sales growing 1.5% - a deceleration from the 2.5% growth in the prior year period. The decline in net sales is largely attributed to the extra week in fiscal 2023, which contributed approximately $181.9 million in the year-ago quarter.

Most impressively, Ulta improved profitability metrics despite topline pressures. Gross margin expanded 50 basis points to 38.2%, driven by reduced inventory shrink, favorable channel mix, and higher merchandise margins - offsetting increased supply chain costs. This translated to diluted EPS of $8.46, surpassing the year-ago figure of $8.08 (which included a $0.46 benefit from the extra week).

The company's balance sheet remains strong with $703.2 million in cash, though inventory levels increased 13% year-over-year to $2.0 billion. This inventory build was strategic, supporting new brand launches and improving in-stock positions in key categories. Ulta continues its aggressive capital return program, repurchasing $249.5 million in shares during Q4 and $1.0 billion for the full fiscal year.

For full-year fiscal 2024, Ulta's performance reflected a challenging environment with comparable sales growth of just 0.7% versus 5.7% in fiscal 2023, and operating margin contraction to 13.9% from 15.0%. Management's characterization of fiscal 2025 as a "pivotal year" with significant investments signals a company focused on long-term growth despite near-term pressures.

Retail Strategy Expert

Ulta's Q4 performance demonstrates the strength of its differentiated business model despite broader category headwinds. The 1.5% comparable sales growth was driven entirely by a 3.0% increase in average ticket, offsetting a 1.4% decrease in transactions - indicating consumers are spending more per visit but shopping less frequently. This pattern suggests successful merchandising and product curation, but potential challenges in driving store traffic.

The company's store expansion strategy remains intact with 66 new stores opened during the fiscal year, bringing the total footprint to 1,445 locations. This brick-and-mortar growth, coupled with ongoing store remodels (41 in fiscal 2024), reflects confidence in the physical retail experience despite industry-wide digital shifts. With 15.1 million square feet of retail space, Ulta continues to solidify its position as the dominant specialty beauty retailer in North America.

Particularly noteworthy is the intentional inventory build-up, which serves multiple strategic purposes: supporting new brand launches, improving in-stock positions in key categories, and ensuring adequate merchandise for new stores. While the 13% inventory increase outpaces sales growth, management's framing suggests this is a deliberate investment rather than a buildup of unwanted merchandise.

CEO Kecia Steelman's comments about fiscal 2025 being a "pivotal year" with "purposeful investments" indicates a potential strategic pivot. Her emphasis on "moving quickly to optimize our business" suggests recognition that the current growth trajectory needs enhancement. The company appears to be entering a reinvestment cycle aimed at reigniting momentum, likely focusing on omnichannel capabilities, loyalty program enhancements, and unique brand partnerships.

03/13/2025 - 04:05 PM

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.--(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

• Net sales decreased 1.9% to $3.5 billion compared to $3.6 billion, primarily due to the benefit of an extra week of sales in fiscal 2023, partially offset by new store contribution and increased comparable sales. Net sales in the 53^rd week of fiscal 2023 were approximately $181.9 million.
• Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 1.5% compared to an increase of 2.5%, driven by a 3.0% increase in average ticket and a 1.4% decrease in transactions.
• Gross profit was $1.33 billion compared to $1.34 billion. As a percentage of net sales, gross profit increased to 38.2% compared to 37.7%, primarily due to lower inventory shrink, favorable channel mix, and higher merchandise margin, partially offset by higher supply chain costs, lower other revenue, and deleverage of store and supply chain fixed costs.
• Selling, general and administrative (SG&A) expenses were $815.6 million compared to $820.4 million. As a percentage of net sales, SG&A expenses increased to 23.4% compared to 23.1%, primarily due to deleverage of store payroll and benefits.
• Operating income was $516.3 million, or 14.8% of net sales, compared to $517.1 million, or 14.5% of net sales.
• The tax rate was 24.1% compared to 24.2%.
• Net income was $393.3 million compared to $394.4 million.
• Diluted earnings per share was $8.46 compared to $8.08, including a $0.46 benefit due to the extra week of sales.

Full Year of Fiscal 2024 Compared to Full Year of Fiscal 2023

• Net sales increased 0.8% to $11.3 billion compared to $11.2 billion, primarily due to new store contribution, partially offset by the benefit of the 53^rd week of sales in fiscal 2023.
• Comparable sales increased 0.7% compared to an increase of 5.7%, driven by a 1.1% increase in average ticket and a 0.4% decrease in transactions.
• Gross profit was $4.39 billion compared to $4.38 billion. As a percentage of net sales, gross profit decreased to 38.8% compared to 39.1%, primarily due to lower merchandise margin, deleverage of store fixed costs, and higher supply chain costs, partially offset by lower inventory shrink and favorable channel mix.
• SG&A expenses were $2.8 billion compared to $2.7 billion. As a percentage of net sales, SG&A expenses increased to 24.9% compared to 24.0%, primarily due to deleverage of store payroll and benefits, corporate overhead due to strategic investments, and store expenses, partially offset by lower incentive compensation.
• Operating income was $1.6 billion, or 13.9% of net sales, compared to $1.7 billion, or 15.0% of net sales.
• The tax rate was 24.0% compared to 23.9%.
• Net income was $1.2 billion compared to $1.3 billion.
• Diluted earnings per share was $25.34, including a $0.10 benefit due to income tax accounting for stock-based compensation, compared to $26.03, including a $0.14 benefit due to income tax accounting for stock-based compensation and a $0.46 benefit due to the extra week of sales.

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:

• macroeconomic conditions, including inflation and elevated interest rates, as well as prior labor, transportation, and shipping cost pressures, have had, and may continue to have, a negative impact on our business, financial condition, profitability, and cash flows (including future uncertain impacts);
• changes in the overall level of consumer spending and volatility in the economy, including as a result of macroeconomic conditions and geopolitical events;
• our ability to sustain our growth plans and successfully implement our long-range strategic and financial plan;
• the ability to execute our operational excellence priorities, including continuous improvement and supply chain optimization;
• our ability to gauge beauty trends and react to changing consumer preferences in a timely manner;
• the possibility that we may be unable to compete effectively in our highly competitive markets;
• the possibility of significant interruptions in the operations of our distribution centers, fast fulfillment centers, and market fulfillment centers;
• the possibility that cybersecurity or information security breaches and other disruptions could compromise our information or result in the unauthorized disclosure of confidential information;
• the possibility of material disruptions to our information systems, including our Ulta.com website and mobile applications;
• the failure to maintain satisfactory compliance with applicable privacy and data protection laws and regulations;
• changes in the good relationships we have with our brand partners, our ability to continue to obtain sufficient merchandise from our brand partners, and/or our ability to continue to offer permanent or temporary exclusive products of our brand partners;
• our ability to effectively manage our inventory and protect against inventory shrink;
• changes in the wholesale cost of our products and/or interruptions at our brand partners’ or third-party vendors’ operations;
• epidemics, pandemics or natural disasters, which could negatively impact sales;
• the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues;
• our ability to attract and retain key executive personnel;
• the impact of climate change on our business operations and/or supply chain;
• our ability to successfully execute our common stock repurchase program or implement future common stock repurchase programs;
• a decline in operating results which could lead to asset impairment and store closure charges; and
• other risk factors detailed in the Company’s public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10‑K for the fiscal year ended February 3, 2024, as such may be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.

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
1st Quarter		1,385		12		2		1,395
2nd Quarter		1,395		17		1		1,411
3rd Quarter		1,411		28		2		1,437
4th 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
1st Quarter		14,515,593		114,786		15,615		14,614,764
2nd Quarter		14,614,764		178,624		10,800		14,782,588
3rd Quarter		14,782,588		258,320		20,083		15,020,825
4th 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/

Investor Contact:

Kiley Rawlins, CFA

Senior Vice President, Investor Relations

krawlins@ulta.com

Media Contact:

Crystal Carroll

Senior Director, Public Relations

ccarroll@ulta.com

Source: Ulta Beauty, Inc.

FAQ

What was Ulta Beauty's (ULTA) comparable sales growth in Q4 2024?

Ulta Beauty's comparable sales increased 1.5% in Q4 2024, driven by a 3.0% increase in average ticket and a 1.4% decrease in transactions.

How much did Ulta Beauty (ULTA) spend on share repurchases in fiscal 2024?

Ulta Beauty repurchased 2.5 million shares at a cost of $1.0 billion during fiscal 2024.

What was Ulta Beauty's (ULTA) store count at the end of Q4 2024?

Ulta Beauty operated 1,445 stores totaling 15.1 million square feet at the end of Q4 2024.

How much did Ulta Beauty's (ULTA) inventory increase in Q4 2024?

Merchandise inventory increased 13.0% to $2.0 billion compared to $1.7 billion in Q4 2023.

What was Ulta Beauty's (ULTA) Q4 2024 earnings per share?

Ulta Beauty reported diluted earnings per share of $8.46 in Q4 2024.