Ulta Beauty(ULTA) - 2024 Q4 - Annual Results

Financial Performance - Net sales increased 10.2% to $3.6 billion compared to $3.2 billion in the year-ago quarter, driven by increased comparable sales and an extra week of sales[1][6] - Comparable sales increased 2.5% in Q4 2023, driven by a 4.5% increase in transactions and a 1.9% decrease in average ticket[6] - Net income increased 15.7% to $394.4 million, with diluted earnings per share rising 21.0% to $8.08[1][6] - Gross profit increased 10.6% to $1.3 billion, with gross profit margin improving to 37.7% from 37.6%[6] - Operating income increased 15.5% to $517.1 million, representing 14.5% of net sales[6] - Net sales for the 14 weeks ended February 3, 2024, were $3.55 billion, a 10.1% increase compared to $3.23 billion in the same period last year[24] - Gross profit for the 14 weeks ended February 3, 2024, was $1.34 billion, representing 37.7% of net sales, up from 37.6% in the prior year[24] - Net income for the 14 weeks ended February 3, 2024, was $394.37 million, an 11.1% increase compared to $340.75 million in the same period last year[24] - Net sales for the 53 weeks ended February 3, 2024, were $11.21 billion, a 9.8% increase compared to $10.21 billion in the prior year[26] - Gross profit for the 53 weeks ended February 3, 2024, was $4.38 billion, representing 39.1% of net sales, down from 39.6% in the prior year[26] - Net income for the 53 weeks ended February 3, 2024, was $1.29 billion, a 3.9% increase compared to $1.24 billion in the prior year[26] Inventory and Store Operations - Merchandise inventories increased 8.6% to $1.7 billion, primarily due to new brand launches and store openings[8] - The company plans to open 60-65 new stores and complete 40-45 remodel and relocation projects in fiscal 2024[17] - Total stores open at the end of the 4th quarter of fiscal 2023 were 1,385, with 13 new stores opened and 2 stores closed during the quarter[32] - Total gross square feet at the end of the 4th quarter of fiscal 2023 were 14,515,593, with 132,464 square feet added and 22,736 square feet lost during the quarter[32] Sales by Category - Cosmetics accounted for 39% of net sales in the 14 weeks ended February 3, 2024, down from 40% in the same period last year[30] - Skincare accounted for 18% of net sales in the 14 weeks ended February 3, 2024, up from 16% in the same period last year[30] Strategic Initiatives and Outlook - The company announced a joint venture with Axo to launch Ulta Beauty in Mexico in 2025[3] - Fiscal 2024 outlook projects net sales of $11.7 billion to $11.8 billion and comparable sales growth of 4% to 5%[17] Share Repurchases - Share repurchases totaled $1.0 billion in fiscal 2023, with a new $2.0 billion repurchase authorization approved[11][13]