On November 30, 2023, Ulta Beauty Inc (ULTA, Financial) released its 8-K filing, announcing financial results for the third quarter of fiscal year 2023. The company saw an increase in net sales to $2.5 billion, up from $2.3 billion in the year-ago quarter. Comparable sales also saw a healthy increase of 4.5%.
Financial Highlights
Ulta Beauty Inc (ULTA, Financial) reported a gross profit margin of 39.9%, a slight decrease from 41.2% in the previous year. Selling, general, and administrative expenses rose to $661.4 million, up from $597.2 million in the same quarter last year. Operating income as a percentage of net sales was reported at 13.1%, compared to 15.5% in the third quarter of fiscal 2022.
The company's net income for the quarter was $249.5 million, translating to $5.07 per diluted share, a decrease from $5.34 per diluted share in the third quarter of the previous fiscal year. During the third quarter, Ulta Beauty Inc (ULTA, Financial) opened 12 new stores and ended the period with a total of 1,374 stores.
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the third quarter totaled $121.8 million. Merchandise inventories increased by 9.8% to $2.3 billion, primarily to support expected demand and new store openings. Short-term debt stood at $195.4 million due to the company's strategic capital allocation priorities.
For the first nine months of fiscal 2023, the company repurchased 1.8 million shares of its common stock at a cost of $840.5 million. As of October 28, 2023, $259.4 million remained available under the $2.0 billion share repurchase program announced in March 2022.
Updated Fiscal 2023 Outlook
Ulta Beauty Inc (ULTA, Financial) has updated its outlook for fiscal 2023, with net sales now expected to range between $11.10 billion and $11.15 billion, and comparable sales growth forecasted at 5.0% to 5.5%. The company also anticipates diluted earnings per share to be between $25.20 and $25.60, with share repurchases approximating $950 million.
CEO Dave Kimbell commented on the results, stating,
The third quarter represented another strong performance by the Ulta Beauty team, as sales, gross profit, and diluted EPS all exceeded our internal expectations. Our traffic trends remained healthy, our brand awareness increased, and we expanded our loyalty program to a record 42.2 million members."
With a positive outlook for the beauty category and strategic plans in place, Ulta Beauty Inc (ULTA, Financial) is poised to continue its growth trajectory and deliver long-term shareholder value.
For more detailed information on Ulta Beauty Inc (ULTA, Financial)'s financial performance, investors and interested parties can access the full earnings report and listen to the earnings call replay on the company's investor relations website.
Explore the complete 8-K earnings release (here) from Ulta Beauty Inc for further details.
