Financial Data and Key Metrics Changes - Net sales increased by 0.9% to $2.6 billion, while comparable sales decreased by 1.2% [4][30] - Operating profit was 12.9% of sales, and diluted EPS was $5.30 per share, down from $6.02 last year [5][34] - Gross margin decreased by 100 basis points to 38.3% compared to 39.3% last year, primarily due to lower merchandise margin and deleverage of store fixed costs [32][34] - SG&A expenses increased by 7.3% to $645 million, with SG&A as a percentage of sales rising to 25.3% from 23.7% last year [34] Business Line Data and Key Metrics Changes - Fragrance category delivered double-digit growth, driven by strong guest engagement and new product launches [15] - Skin care category saw mid-single digit comp growth, particularly in Body Care, while prestige skincare faced pressures [16] - Makeup category experienced a mid-single digit decline in comp sales, with new brands performing well but existing brands underperforming [17] - Hair care category comp sales decreased in the high-single digit range due to planned promotional shifts [18] Market Data and Key Metrics Changes - U.S. beauty growth slowed to approximately 3% in the first half of 2024, with prestige beauty experiencing high-single digit growth and mass beauty maintaining low-single digit growth [6] - Market share in mass beauty was maintained, but share in prestige beauty was lost, particularly in makeup and hair categories [8] Company Strategy and Development Direction - The company is focusing on five key areas to reinforce its competitive position: strengthening assortment, expanding social relevance, enhancing digital experience, leveraging loyalty programs, and evolving promotional strategies [11][19] - New brand launches and exclusive partnerships are planned to drive growth, including the relaunch of the Ulta Beauty Collection [20][21] - The company aims to enhance brand awareness and engagement through influencer networks and social media initiatives [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged competitive intensity in the beauty category and the impact of new distribution points on existing stores [7][9] - The company is confident in its ability to navigate competitive pressures and is focused on improving performance in the second half of the year [29][39] - A cautious outlook for the year was provided, with net sales expected between $11 billion and $11.2 billion and comp sales projected to decline by 2% to flat [37][38] Other Important Information - The company completed its ERP transformation, which caused operational disruptions but is now expected to improve efficiency [12][69] - The loyalty program has grown to 43.9 million active members, reflecting a 5% increase year-over-year [10] Q&A Session Summary Question: Can you expand on the competitive pressures noted? - Management highlighted that 88% of stores have been impacted by competitive openings, with those facing multiple openings underperforming compared to those with limited impact [42][44] Question: What actions are being taken to limit SG&A deleverage? - Focused expense management has led to better-than-planned SG&A, with expectations for mid-single digit growth in the second half [46][47] Question: How long to restore positive comps given competitive overlap? - Management remains confident in long-term recovery, citing positive signals in guest engagement and new product introductions [50][55] Question: How is the salon unit growth and Target rollout performing? - New store openings are performing well, and the partnership with Target is seen as a strategic asset for member engagement [58][59] Question: What gives confidence that promotional levels can sustain? - Management believes that while promotional activity has increased, it will remain rational and below pre-COVID levels due to smart execution and CRM capabilities [61][62] Question: How is the operational disruption from the ERP transition being managed? - The challenging phase of the ERP rollout has been completed, and the focus is now on optimizing the system [68][69] Question: Any updates on long-term margin targets? - No updates were provided, but management plans to discuss long-term expectations at the upcoming Investor Day [72] Question: Are share losses in prestige getting worse? - Management indicated that while pressures remain, the situation has not worsened, and the dynamics are consistent with earlier trends [76] Question: Has the competitive environment changed the ability to get new brands? - Management stated that brand partners continue to view Ulta Beauty as a leading destination for expansion, maintaining strong relationships with existing and new brands [78][79]

For the quarter ended July 2024, Ulta Beauty (ULTA) reported revenue of $2.55 billion, up 0.9% over the same period last year. EPS came in at $5.30, compared to $6.02 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.61 billion, representing a surprise of -2.24%. The company delivered an EPS surprise of -2.75%, with the consensus EPS estimate being $5.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

Ulta Beauty (ULTA) came out with quarterly earnings of $5.30 per share, missing the Zacks Consensus Estimate of $5.45 per share. This compares to earnings of $6.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.75%. A quarter ago, it was expected that this beauty products retailer would post earnings of $6.19 per share when it actually produced earnings of $6.47, delivering a surprise of 4.52%. Over the last four quarters ...

An Ulta Beauty store in New York, US, on Monday, Aug. 19, 2024. Ulta Beauty shares fell 7% in extended trading Thursday as the company fell short of second-quarter expectations and trimmed its full-year guidance after a decline in same-store sales during the most recent period. It was the company's first earnings per share miss since May 2020 and first revenue miss since December 2020. Comparable sales for the second quarter fell 1.2%, compared with an 8% increase a year earlier and well below the 1.2% grow ...

Table of Contents 60440 (Zip code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $0.01 per share ULTA The NASDAQ Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended August 3, 2024 or ☐ Transition Report Pursuant to Section 13 o ...

Exhibit 99.1 ULTA BEAUTY ANNOUNCES SECOND QUARTER FISCAL 2024 RESULTS Net Sales of $2.6 Billion Compared to $2.5 Billion in the Year-Ago Quarter Comparable Sales Decreased 1.2% Net Income of $252.6 Million or $5.30 Per Diluted Share Bolingbrook, IL – August 29, 2024 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period ("second quarter") and twentysix-week period ("first six months") ended August 3, 2024 compared to the same periods ended July 29, 2023. | --- | -- ...

JP Morgan analyst Christopher Horvers reiterated an Overweight rating on Ulta Beauty, Inc. ULTA, lowering the price forecast to $450 from $544. The company will report its earnings results tomorrow after the closing bell. Horvers lowered the company's comp forecast to flat for the second quarter, as most investors expect a -1% outcome. The analyst has reduced the comps estimate for the second half of 2024 to +1%, with a revised second-quarter EPS of $5.46 and FY24 EPS of $25.10, compared to the consensus es ...

The company has set itself apart in the competitive world of cosmetics retail. Ulta Beauty (ULTA 0.18%) has recently gotten much attention because of the large stake unexpectedly purchased by Warren Buffett's Berkshire Hathaway. With a higher profile, the cosmetics retailer is also winning attention from a clutch of analysts, with one of those pundits recently modifying his price target on the shares. Price target reduced; bullish stance maintained Baird's Mark Altschwager recently cut said price target to ...

Ulta Beauty, Inc. (ULTA) is likely to register top-line growth when it reports second-quarter fiscal 2024 earnings on Aug 29. The Zacks Consensus Estimate for revenues is pegged at $2.62 billion, suggesting an increase of 3.5% from the prior-year quarter's reported figure. However, the bottom line is likely to decline year over year. The consensus mark for quarterly earnings has dropped by 1 cent in the past 30 days to $5.49 per share. This indicates a decline of 8.8% from the year-ago quarter's reported fi ...

In its upcoming report, Ulta Beauty (ULTA) is predicted by Wall Street analysts to post quarterly earnings of $5.49 per share, reflecting a decline of 8.8% compared to the same period last year. Revenues are forecasted to be $2.62 billion, representing a year-over-year increase of 3.5%. Over the last 30 days, there has been a downward revision of 2.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial ...