Ulta Beauty Inc (ULTA, Financial), the largest specialized beauty retailer in the U.S., reported its financial results for the first quarter of fiscal 2024, ending May 4, 2024. The company operates 1,395 stores and offers a wide range of beauty products and salon services.
Performance Overview
Ulta Beauty Inc (ULTA, Financial) reported net sales of $2.73 billion for the first quarter, a 3.5% increase from $2.63 billion in the same period last year. However, this barely surpassed the analyst estimate of $2.72 billion. Comparable sales increased by 1.6%, compared to a 9.3% increase in the prior year.
Net income for the quarter was $313.1 million, or $6.47 per diluted share, surpassing the analyst estimate of $6.23 per share but down from $6.88 per share in the same quarter last year.
Financial Achievements and Challenges
Despite the challenging operating environment, Ulta Beauty Inc (ULTA, Financial) managed to deliver a solid performance. The company's gross profit margin was 39.2%, down from 40.0% in the previous year, while operating income as a percentage of net sales decreased to 14.7% from 16.8%.
CEO Dave Kimbell commented,
The Ulta Beauty team delivered net sales growth of 3.5% and comparable sales growth of 1.6% in a dynamic operating environment. I am proud of how our teams continued to execute our transformational agenda, adapt to a rapidly evolving marketplace, and thoughtfully manage expenses across the enterprise."
Key Financial Metrics
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $2.73 billion | $2.63 billion |
| Comparable Sales | 1.6% | 9.3% |
| Gross Profit Margin | 39.2% | 40.0% |
| Operating Income Margin | 14.7% | 16.8% |
| Diluted EPS | $6.47 | $6.88 |
Balance Sheet and Cash Flow
Ulta Beauty Inc (ULTA, Financial) ended the first quarter with $524.6 million in cash and cash equivalents. Merchandise inventories increased to $1.9 billion, primarily due to new brand launches and the opening of new stores. The company repurchased 588,004 shares of its common stock at a cost of $285.1 million during the quarter.
Fiscal 2024 Outlook
Ulta Beauty Inc (ULTA, Financial) updated its fiscal 2024 guidance, lowering its net sales outlook to $11.5 billion to $11.6 billion from the previous range of $11.7 billion to $11.8 billion. The company also adjusted its diluted earnings per share guidance to $25.20 to $26.00, down from $26.20 to $27.00.
Despite the revised outlook, Ulta Beauty Inc (ULTA, Financial) remains confident in its business model and the resilience of the beauty category. The company plans to continue its strategic initiatives to drive growth and enhance customer experiences.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Ulta Beauty Inc for further details.
