0001403568false00014035682024-05-302024-05-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 30, 2024

ULTA BEAUTY, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-33764

38-4022268

(State or Other Jurisdiction
of Incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

1000 Remington Blvd., Suite 120, Bolingbrook, Illinois 60440

(Address of Principal Executive Offices and zip code) 

(630) 410-4800

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 C.F.R. §230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 C.F.R. §240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 C.F.R. §240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 C.F.R. §240.13e-4(c))

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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company      

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      

Item 2.02 Results of Operations and Financial Condition.

On May 30, 2024, Ulta Beauty, Inc. issued a press release regarding its consolidated financial results for the first quarter ended May 4, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The exhibits listed in the Exhibit Index below are being furnished herewith.

Exhibit
   No.  

    

Description

99.1

Press release issued by Ulta Beauty, Inc. on May 30, 2024 announcing consolidated financial results for the first quarter ended May 4, 2024.

104

Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ULTA BEAUTY, INC.

Date: May 30, 2024

By:

/s/ Jodi J. Caro

Jodi J. Caro

General Counsel, Chief Risk & Compliance Officer

3

Exhibit 99.1

Graphic

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

Bolingbrook, IL – May 30, 2024 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“first quarter”) ended May 4, 2024.

13 Weeks Ended

May 4,

April 29,

(Dollars in millions, except per share data)

2024

2023

Net sales

$

2,725.8

$

2,634.3

Comparable sales (1)

1.6%

9.3%

Gross profit (as a percentage of net sales)

39.2%

40.0%

Selling, general and administrative expenses

$

665.9

$

612.1

Operating income (as a percentage of net sales)

14.7%

16.8%

Diluted earnings per share

$

6.47

$

6.88

New store openings, net

10

4

(1)Comparable sales are calculated based on the comparable 13 calendar weeks in the current and prior year.

“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 marketplace, and thoughtfully manage expenses across the enterprise,” said Dave Kimbell, chief executive officer. “We have a clear plan to accelerate our momentum and continue delivering a best-in-class assortment and engaging experiences for our guests. I remain confident in our differentiated model, the resilience of the beauty category, and our ability to execute against our plans, but we have adjusted our annual guidance as we anticipate the dynamics we faced in the first quarter to continue for the balance of the year.”

First Quarter of Fiscal 2024 Compared to First Quarter of Fiscal 2023

Net sales increased 3.5% to $2.7 billion compared to $2.6 billion, primarily due to increased comparable sales, new store contribution, and growth in other revenue.
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 1.6% compared to the first quarter of fiscal 2023, driven by a 1.3% increase in transactions and a 0.3% increase in average ticket.

Gross profit increased 1.4% to $1.07 billion compared to $1.05 billion. As a percentage of net sales, gross profit decreased to 39.2% compared to 40.0%, primarily due to lower merchandise margins and higher inventory shrink, partially offset by growth in other revenue.
Selling, general and administrative (“SG&A”) expenses increased 8.8% to $665.9 million compared to $612.1 million. As a percentage of net sales, SG&A expenses increased to 24.4% compared to 23.2%, primarily due to higher corporate overhead for strategic investments, higher store payroll and benefits, and higher store expenses.
Operating income was $400.9 million, or 14.7% of net sales, compared to $442.1 million, or 16.8% of net sales.
The tax rate increased to 23.2% compared to 22.8% primarily due to a reduced benefit from income tax accounting for stock-based compensation.
Net income was $313.1 million compared to $347.1 million.
Diluted earnings per share was $6.47, including a $0.10 benefit due to income tax accounting for stock-based compensation, compared to $6.88, including a $0.14 benefit due to income tax accounting for stock-based compensation.

Balance Sheet

Cash and cash equivalents at the end of the first quarter of fiscal 2024 totaled $524.6 million.

Merchandise inventories, net at the end of first quarter of fiscal 2024 increased to $1.9 billion compared to $1.8 billion at the end of the first quarter of fiscal 2023. The increase was primarily due to inventory to support new brand launches, 36 net new stores, and an increase in distribution center inventory primarily due to the opening of the market fulfillment center in Greer, SC.

Share Repurchase Program

During the first quarter of fiscal 2024, the Company repurchased 588,004 shares of its common stock at a cost of $285.1 million. As of May 4, 2024, $1.8 billion remained available under the $2.0 billion share repurchase program announced in March 2024.

Store Update

During the first quarter of fiscal 2024, we opened 12 new stores, closed two stores, and relocated one store. At the end of the first quarter of fiscal 2024 the Company operated 1,395 stores totaling 14.6 million square feet.











Fiscal 2024 Outlook

The Company has updated its outlook for fiscal 2024.

Prior FY24 Outlook

Updated FY24 Outlook

Net sales

$11.7 billion to $11.8 billion

$11.5 billion to $11.6 billion

Comparable sales

4% to 5%

2% to 3%

New stores, net

60-65

no change

Remodel and relocation projects

40-45

no change

Operating margin

14.0% to 14.3%

13.7% to 14.0%

Diluted earnings per share

$26.20 to $27.00

$25.20 to $26.00

Share repurchases

approximately $1 billion

no change

Interest income

approximately $11 million

approximately $13 million

Effective tax rate

approximately 24.3%

approximately 24%

Capital expenditures

$415 million to $490 million

no change

Depreciation and amortization expense

$275 million to $280 million

$270 million to $275 million

Conference Call Information

A conference call to discuss first quarter of fiscal 2024 results is scheduled for today, May 30, 2024, at 4:30 p.m. Eastern Time / 3:30 p.m. CT. Investors and analysts who are interested in participating in the call are invited to dial (877) 704-4453. Participants may also listen to a real-time audio webcast of the conference call by visiting the Investor Relations section of the Company’s website located at https://www.ulta.com/investor. A replay will be made available online approximately two hours following the live call for a period of 30 days.

About Ulta Beauty

At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the Company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty. All in One Place®. Today, Ulta Beauty operates 1,395 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. For more information, visit www.ulta.com.


Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect the company’s current views with respect to, among other things, future events and financial performance. These statements can be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “plans,” “estimates,” “targets,” “strategies” or other comparable words. Any forward-looking statements contained in this press release are based upon the company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the company or any other person that the future plans, estimates, targets, strategies or expectations contemplated by the company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation:

macroeconomic conditions, including inflation, elevated interest rates and recessionary concerns, as well as continuing labor cost pressures, and transportation and shipping cost pressures, have had, and may continue to have, a negative impact on our business, financial condition, profitability, and cash flows (including future uncertain impacts);
changes in the overall level of consumer spending and volatility in the economy, including as a result of macroeconomic conditions and geopolitical events;
our ability to sustain our growth plans and successfully implement our long-range strategic and financial plan;
the ability to execute our operational excellence priorities, including continuous improvement, Project SOAR (the replacement of our enterprise resource planning platform), and supply chain optimization;
our ability to gauge beauty trends and react to changing consumer preferences in a timely manner;
the possibility that we may be unable to compete effectively in our highly competitive markets;
the possibility of significant interruptions in the operations of our distribution centers, fast fulfillment centers, and market fulfillment centers;
the possibility that cybersecurity or information security breaches and other disruptions could compromise our information or result in the unauthorized disclosure of confidential information;
the possibility of material disruptions to our information systems, including our Ulta.com website and mobile applications;
the failure to maintain satisfactory compliance with applicable privacy and data protection laws and regulations;
changes in the good relationships we have with our brand partners, our ability to continue to obtain sufficient merchandise from our brand partners, and/or our ability to continue to offer permanent or temporary exclusive products of our brand partners;
our ability to effectively manage our inventory and protect against inventory shrink;
changes in the wholesale cost of our products and/or interruptions at our brand partners’ or third-party vendors’ operations;
epidemics, pandemics or natural disasters, which could negatively impact sales;
the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues;

our ability to attract and retain key executive personnel;
the impact of climate change on our business operations and/or supply chain;
our ability to successfully execute our common stock repurchase program or implement future common stock repurchase programs;
a decline in operating results which could lead to asset impairment and store closure charges; and
other risk factors detailed in the Company’s public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10-K for the fiscal year ended February 3, 2024, as such may be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.

The Company’s filings with the SEC are available at www.sec.gov. Except to the extent required by the federal securities laws, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contacts:

Kiley Rawlins, CFA

Vice President, Investor Relations

krawlins@ulta.com

Media Contact:

Crystal Carroll

Senior Director, Public Relations

ccarroll@ulta.com


Exhibit 1

Ulta Beauty, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

13 Weeks Ended

May 4,

April 29,

2024

2023

(Unaudited)

(Unaudited)

Net sales

$

2,725,848

100.0%

$

2,634,263

100.0%

Cost of sales

    

1,656,068

    

60.8%

1,579,406

    

60.0%

Gross profit

1,069,780

39.2%

1,054,857

40.0%

Selling, general and administrative expenses

665,913

24.4%

612,129

23.2%

Pre-opening expenses

2,919

0.1%

658

0.0%

Operating income

400,948

14.7%

442,070

16.8%

Interest income, net

(6,900)

(0.3%)

(7,348)

(0.3%)

Income before income taxes

407,848

15.0%

449,418

17.1%

Income tax expense

94,735

3.5%

102,367

3.9%

Net income

$

313,113

11.5%

$

347,051

13.2%

Net income per common share:

Basic

$

6.51

$

6.92

Diluted

$

6.47

$

6.88

Weighted average common shares outstanding:

Basic

48,125

50,153

Diluted

48,381

50,469


Exhibit 2

Ulta Beauty, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

May 4,

February 3,

April 29,

2024

2024

2023

(Unaudited)

(Unaudited)

Assets

    

    

    

Current assets:

Cash and cash equivalents

$

524,596

$

766,594

$

636,449

Receivables, net

203,463

207,939

190,282

Merchandise inventories, net

1,906,040

1,742,136

1,751,235

Prepaid expenses and other current assets

126,529

115,598

108,014

Prepaid income taxes

4,251

Total current assets

2,760,628

2,836,518

2,685,980

Property and equipment, net

1,195,658

1,182,335

1,019,978

Operating lease assets

1,561,767

1,574,530

1,559,560

Goodwill

10,870

10,870

10,870

Other intangible assets, net

434

510

1,015

Deferred compensation plan assets

45,718

43,516

37,002

Other long-term assets

56,864

58,732

61,314

Total assets

$

5,631,939

$

5,707,011

$

5,375,719

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

463,777

$

544,001

$

621,272

Accrued liabilities

332,692

382,468

308,583

Deferred revenue

398,729

436,591

357,217

Current operating lease liabilities

284,815

283,821

288,133

Accrued income taxes

92,711

11,310

58,695

Total current liabilities

1,572,724

1,658,191

1,633,900

Non-current operating lease liabilities

1,607,953

1,627,271

1,610,256

Deferred income taxes

89,556

85,921

57,490

Other long-term liabilities

60,963

56,300

56,005

Total liabilities

3,331,196

3,427,683

3,357,651

Commitments and contingencies

Total stockholders’ equity

2,300,743

2,279,328

2,018,068

Total liabilities and stockholders’ equity

$

5,631,939

$

5,707,011

$

5,375,719


Exhibit 3

Ulta Beauty, Inc.

Consolidated Statements of Cash Flows

(In thousands)

13 Weeks Ended

May 4,

April 29,

2024

2023

(Unaudited)

(Unaudited)

Operating activities

Net income

$

313,113

$

347,051

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

64,739

57,949

Non-cash lease expense

77,938

75,478

Deferred income taxes

3,635

2,144

Stock-based compensation expense

10,082

9,721

Loss on disposal of property and equipment

2,975

1,451

Change in operating assets and liabilities:

Receivables

4,476

9,140

Merchandise inventories

(163,904)

(147,784)

Prepaid expenses and other current assets

(10,931)

22,232

Income taxes

85,652

97,003

Accounts payable

(74,069)

62,257

Accrued liabilities

(43,846)

(98,515)

Deferred revenue

(37,862)

(37,460)

Operating lease liabilities

(83,500)

(78,562)

Other assets and liabilities

10,842

(17,204)

Net cash provided by operating activities

159,340

304,901

Investing activities

Capital expenditures

(91,024)

(109,766)

Other investments

(2,563)

(314)

Net cash used in investing activities

(93,587)

(110,080)

Financing activities

Repurchase of common shares

(289,431)

(283,517)

Stock options exercised

8,913

8,927

Purchase of treasury shares

(23,283)

(21,659)

Debt issuance costs

(3,950)

Net cash used in financing activities

(307,751)

(296,249)

Net decrease in cash and cash equivalents

(241,998)

(101,428)

Cash and cash equivalents at beginning of period

766,594

737,877

Cash and cash equivalents at end of period

$

524,596

$

636,449


Exhibit 4

Ulta Beauty, Inc.

Store Update

    

Total stores open

Number of stores

Number of stores

Total stores

at beginning of the

opened during the

closed during the

open at

Fiscal 2024

quarter

    

quarter

    

quarter

    

end of the quarter

1st Quarter

1,385

12

2

1,395

Gross square feet for

    

Total gross square

stores opened or

Gross square feet for

Total gross square

feet at beginning of

expanded during the

stores closed

feet at end of the

Fiscal 2024

the quarter

    

quarter

    

during the quarter

    

quarter

1st Quarter

14,515,593

114,786

15,615

14,614,764


Exhibit 5

Ulta Beauty, Inc.

Sales by Category

The following table sets forth the approximate percentage of net sales by primary category:

13 Weeks Ended

    

May 4,

   

April 29,

2024

2023

Cosmetics

42%

44%

Skincare

23%

22%

Haircare

19%

19%

Fragrance

10%

9%

Services

4%

4%

Other

2%

2%

100%

100%

Certain sales departments were reclassified between categories in the prior year to conform to current year presentation, including moving the bath category from Fragrance to Skincare.


v3.24.1.1.u2
Document and Entity Information
May 30, 2024
Document and Entity Information [Abstract]  
Document Type 8-K
Document Period End Date May 30, 2024
Entity File Number 001-33764
Entity Registrant Name ULTA BEAUTY, INC.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 38-4022268
Entity Address, Address Line One 1000 Remington Blvd.
Entity Address, Adress Line Two Suite 120
Entity Address, State or Province IL
Entity Address, City or Town Bolingbrook
Entity Address, Postal Zip Code 60440
City Area Code 630
Local Phone Number 410-4800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol ULTA
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001403568
Amendment Flag false

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