Ulta Beauty Inc (ULTA) Q3 2024 Earnings Report

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Ulta Beauty Inc

ULTA

$601.50 12.65%

Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Specialty Retail

Q3 2024

Published: Dec 5, 2024

Earnings Highlights

Revenue of $2.53B down 28.8% year-over-year
EPS of $5.14 decreased by 36.5% from previous year
Gross margin of 39.7%
Net income of 242.18M
"We are starting to see benefit from actions we are taking to reinforce our market position and improve our performance. - Dave Kimbell" - Dave Kimbell

ULTA

Ulta Beauty Inc

Period Q3 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Ulta Beauty Inc reported Q3 2024 results demonstrating resilience with a 1.7% increase in net sales to $2.5 billion and a 0.6% rise in comparable sales. Despite facing headwinds from a competitive landscape, particularly in the prestige beauty segment, management expressed optimism over improved market share trends, with flat market share reported for the quarter. The company's strategic focus on product innovation, expanding its loyalty program to 44.4 million active members, and enhancing marketing efforts were highlighted as contributing factors to their performance. Continued investments in technology and customer engagement were also outlined as part of their longer-term growth strategies.

Key Performance Indicators

Revenue

Decreasing

2.53B

QoQ: -0.86% | YoY: -28.82%

Gross Profit

Decreasing

1.01B

39.75% margin

QoQ: 2.81% | YoY: -24.98%

Operating Income

Decreasing

318.50M

QoQ: -3.25% | YoY: -38.77%

Net Income

Decreasing

242.18M

QoQ: -4.11% | YoY: -38.59%

EPS

Decreasing

5.16

QoQ: -3.01% | YoY: -36.53%

Revenue Trend

Margin Analysis

Financial Highlights

Key Financial Metrics:

- Revenue: $2.53 billion (up 1.7% YoY, down 0.86% QoQ)
- Net Income: $242.18 million (down 38.59% YoY, down 4.11% QoQ)
- EPS: $5.14 (up 1.4% YoY)
- Gross Margin: 39.7% (down 20 basis points YoY)
- Operating Margin: 12.6% (down 50 basis points YoY)
- Inventory: increased 1.9% to $2.4 billion

Management noted, "We are navigating a number of headwinds, including the normalization of the US beauty category...and elevated competition, particularly in prestige beauty." This indicates the company is aware of market dynamics affecting performance. Incremental improvements in comp sales growth from both stores and e-commerce channels further reinforce their adaptive strategies to enhance performance under challenging conditions.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	2.53B	-28.82%	-0.86%
Gross Profit	1.01B	-24.98%	2.81%
Operating Income	318.50M	-38.77%	-3.25%
Net Income	242.18M	-38.59%	-4.11%
EPS	5.16	-36.53%	-3.01%

Key Financial Ratios

Gross Profit Margin

Fair

39.70%

Gross profit margin is moderate, room for improvement in cost management

Operating Profit Margin

Fair

12.60%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

9.57%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Fair

4.06%

Return on assets is acceptable but below top-tier companies

Return on Equity

Fair

10.40%

Return on equity is acceptable but below top-tier companies

Current Ratio

Healthy

1.63

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Elevated

0.92

Debt-to-equity shows significant leverage, monitor debt levels

P/E Ratio

Fair Value

18.29x

P/E ratio in line with market averages

Price to Book

High Premium

7.61x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q3 2024	2,530.10	5.14	-28.8%	View
Q2 2024	2,552.09	5.30	+2.5%	View
Q1 2024	2,725.85	6.47	+7.8%	View
Q4 2023	3,554.30	8.08	+34.9%	View

Ulta Beauty Inc (ULTA) Q3 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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