"We attribute the decline in comp store transactions to four factors... consumer behavior is starting to shift as consumers increasingly focus on value and become more cautious with their spending."
— Dave Kimbell, CEO
03Detailed Report
ULTA
Ulta Beauty Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
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Executive Summary
Ulta Beauty Inc reported a mixed financial performance for Q2 2024, highlighting challenges in a competitive retail landscape. The company's revenue reached $2.552 billion, a modest increase of 0.9% year-over-year, but comparable sales faced a decline of 1.2%. Management attributed this decline to increased competitive pressures and changing consumer behaviors focused on value. The operating profit margin fell to 12.9%, down from 15.5% in the previous year, reflecting the impact of promotional activities and inventory management issues related to their new ERP system. Despite these hurdles, Ulta continues to experience growth in its loyalty program and e-commerce channel, with strong sales for emerging brands and services.
In the earnings call, CEO Dave Kimbell emphasized the company’s commitment to strategic actions to strengthen its assortment and enhance customer engagement, noting the potential for recovery in an evolving competitive environment. As a result, Ulta Beauty remains focused on leveraging its loyal customer base, innovative products, and omnichannel strategy to navigate challenges and drive future growth.
Key Performance Indicators
Revenue
Increasing
2.55B
QoQ: -6.37% | YoY: 2.54%
Gross Profit
Decreasing
978.18M
38.30% margin
QoQ: -8.56% | YoY: -1.40%
Operating Income
Increasing
329.20M
QoQ: -18.49% | YoY: 0.60%
Net Income
Increasing
252.56M
QoQ: -19.34% | YoY: 1.23%
EPS
Increasing
5.32
QoQ: -18.28% | YoY: 4.52%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $2.552 billion, +0.9% YoY; Q1 2024 revenue was $2.726 billion, -6.37% QoQ.
- Net Income: $252.6 million, net income ratio of 9.9%.
- Operating Income: $329.2 million, with an operating margin of 12.9%, down from 15.5% YoY.
- EPS (Diluted): $5.30, down from $6.02 in Q2 2023.
- Cash Flow from Operations: $199.4 million.
- Loyalty Members: 43.9 million, up 5% YoY with increased engagement from platinum and diamond tiers.
- Current Ratio: 1.76, indicating good liquidity and ability to meet short-term liabilities.
- Debt-to-Equity Ratio: 0.82, reflecting manageable leverage levels compared to peers.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.55B
2.54%
-6.37%
Gross Profit
978.18M
-1.40%
-8.56%
Operating Income
329.20M
0.60%
-18.49%
Net Income
252.56M
1.23%
-19.34%
EPS
5.32
4.52%
-18.28%
Key Financial Ratios
Gross Profit Margin
Fair
38.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
12.90%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.90%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
4.40%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
10.80%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.76
Current ratio shows adequate liquidity to meet short-term obligations