Ulta Beauty, Inc. (NASDAQ:ULTA) Q1 2024 Earnings Conference Call May 30, 2024 4:30 PM ET Company Participants Kiley Rawlins - CFA, Vice President, Investor Relations Dave Kimbell - Chief Executive Officer Paula Oyibo - Chief Financial Officer Kecia Steelman - President and Chief Operating Officer Conference Call Participants Simeon Siegel - BMO Capital Markets Simeon Gutman - Morgan Stanley Kate McShane - Goldman Sachs Chris Horvers - JPMorgan Mark Altschwager - Baird Oliver Chen - TD Cowen Michael Binetti ...

For the quarter ended April 2024, Ulta Beauty (ULTA) reported revenue of $2.73 billion, up 3.5% over the same period last year. EPS came in at $6.47, compared to $6.88 in the year-ago quarter. The reported revenue represents a surprise of +0.37% over the Zacks Consensus Estimate of $2.72 billion. With the consensus EPS estimate being $6.19, the EPS surprise was +4.52%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Ulta Beauty (ULTA) came out with quarterly earnings of $6.47 per share, beating the Zacks Consensus Estimate of $6.19 per share. This compares to earnings of $6.88 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 4.52%. A quarter ago, it was expected that this beauty products retailer would post earnings of $7.49 per share when it actually produced earnings of $8.08, delivering a surprise of 7.88%. Over the last four quarters, ...

Ulta Beauty reported on Thursday fiscal first-quarter earnings that showed the effects of a slowdown its CEO had previously warned about. Comparable sales, a metric that tracks Ulta stores open at least 14 months along with online sales, increased 1.6% year over year, a stark slowdown from the same period a year earlier when Ulta reported comparable sales growth of 9.3% The company lowered their guidance for the fiscal year. Ulta reported that it is now expecting net sales in the range of $11.5 billion to $ ...

Financial Performance - Net sales for the first quarter of fiscal 2024 reached $2,725.8 million, an increase of 3.5% compared to $2,634.3 million in the same period last year[85]. - Comparable sales increased by 1.6% in the first quarter of fiscal 2024, a significant decrease from the 9.3% growth in the prior year[85]. - Gross profit margin decreased to 39.2% in Q1 2024 from 40.0% in Q1 2023, reflecting increased cost of sales as a percentage of net sales[86]. - Operating income for the first quarter was $400.9 million, down from $442.1 million in the same quarter last year, resulting in an operating income margin of 14.7%[85]. - Net income for the first quarter was $313.1 million, compared to $347.1 million in the same period last year, representing a net income margin of 11.5%[85]. - Net income decreased to $313.1 million for the 13 weeks ended May 4, 2024, down from $347.1 million in the prior year[93]. - Interest income, net decreased to $6.9 million for the 13 weeks ended May 4, 2024, compared to $7.3 million in the prior year[91]. - The effective tax rate increased to 23.2% for the 13 weeks ended May 4, 2024, compared to 22.8% for the same period in 2023[92]. Expenses and Costs - Selling, general and administrative expenses increased to $665.9 million, or 24.4% of net sales, compared to 23.2% in the prior year[86]. - Selling, general and administrative (SG&A) expenses increased by $53.8 million or 8.8%, amounting to $665.9 million, with SG&A as a percentage of net sales rising to 24.4%[89]. - Gross profit rose by $14.9 million or 1.4%, totaling $1.07 billion, with gross profit margin decreasing to 39.2% from 40.0% year-over-year[88]. Store Expansion and Inventory - The number of stores at the end of the first quarter increased to 1,395, up from 1,359 stores a year ago[85]. - The company opened 12 new stores during the 13 weeks ended May 4, 2024, compared to 5 new stores opened in the same period of the previous year[103]. - Merchandise inventories increased by $154.8 million or 8.8%, totaling $1.9 billion as of May 4, 2024[102]. Cash and Shareholder Returns - Cash and cash equivalents were $524.6 million as of May 4, 2024, down from $636.4 million a year earlier[94]. - The company repurchased 588,004 shares at a total cost of $287.4 million during the 13 weeks ended May 4, 2024[112]. Strategic Focus and Market Conditions - The company continues to focus on expanding its omnichannel capabilities and enhancing customer experiences to drive future growth[68]. - Inflation and macroeconomic conditions are expected to impact consumer spending and could affect future sales performance[72]. - The company aims to optimize its real estate portfolio and expand merchandise margins to support long-term growth strategies[70].

Exhibit 99.1 ULTA BEAUTY ANNOUNCES FIRST QUARTER FISCAL 2024 RESULTS Net Sales of $2.7 Billion Compared to $2.6 Billion in the Year-Ago Quarter Comparable Sales Increased 1.6% Net Income of $313.1 Million or $6.47 Per Diluted Share Company Updates Fiscal 2024 Guidance "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 marketpl ...

Ulta Beauty, Inc. (ULTA) is likely to register top-line growth when it reports first-quarter fiscal 2024 earnings on May 30. The Zacks Consensus Estimate for revenues is pegged at $2.72 billion, which suggests an increase of 3.2% 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 decreased by 1 cent in the past seven days to $6.23 per share. This indicates a decline of 9.5% from the year-ago quarter's rep ...

This focus on a single niche has resonated with many shoppers. Ulta did $11.2 billion in revenue last year, up from $10.2 billion a year prior. Ten years ago, it was only doing $3 billion in annual revenue. With a $112 billion beauty-products market in the United States, the company still has a long runway to steal market share from legacy operators like department stores and mass merchandisers. As long as it keeps up its superior customer offering, I think it can do just that. Comp sales slow, but that's n ...

There are multiple paths to good returns for shareholders. Shares of cosmetics retail chain Ulta Beauty (ULTA 1.50%) are down more than 30% from all-time highs. But this is not a business in decline at all. And it's quite easy to prove. Ulta Beauty had zero long-term debt as of February 2024. As investing great Peter Lynch used to say, "It's very hard to go bankrupt when you don't have any debt." To this I'll add that it's even harder to go bankrupt when a company is also profitable. And Ulta is very profit ...

The investment community will be paying close attention to the earnings performance of Ulta Beauty in its upcoming release. The company is slated to reveal its earnings on May 30, 2024. In that report, analysts expect Ulta Beauty to post earnings of $6.24 per share. This would mark a year-over-year decline of 9.3%. Alongside, our most recent consensus estimate is anticipating revenue of $2.73 billion, indicating a 3.47% upward movement from the same quarter last year. For the full year, the Zacks Consensus ...