Ulta Beauty Inc
Q3 2024 Earnings
Did ULTA Beat Earnings? Q3 2024 Results
Ulta Beauty delivered a solid third quarter, with earnings per share of $5.07 beating the $4.95 consensus estimate by 2.42% and revenue of $2.49 billion edging past the $2.47 billion forecast while climbing 6.4% year over year, as strong consumer appetite for beauty products kept the top line moving in the right direction. The key driver was a 4.5% comparable sales increase, fueled by a 5.9% rise in transactions, though a 1.4% dip in average ticket and persistent margin pressure, including higher inventory shrink and elevated supply chain costs, weighed on profitability, pushing net income down to $249.48 million from $274.58 million a year ago. The quarter also brought a notable leadership shift, with longtime CFO Scott Settersten announcing his retirement and Paula Oyibo set to step into the role. Looking ahead, management narrowed its full-year net sales guidance to $11.10 billion to $11.15 billion, raised comparable sales growth expectations to 5.0% to 5.5%, and lifted diluted EPS guidance to $25.20 to $25.60.
- Comparable sales increased 4.5%, driven by 5.9% increase in transactions
- Loyalty program expanded to record 42.2 million members
- Strong new store performance with 12 net new stores in Q3
- Strong growth in other revenue
- Skincare and fragrance/bath categories gained share in product mix
“The third quarter represented another strong performance by the Ulta Beauty team, as sales, gross profit, and diluted EPS all exceeded our internal expectations. Our traffic trends remained healthy, our brand awareness increased, and we expanded our loyalty program to a record 42.2 million members.”
Ulta Beauty CEO, on the earnings call
Forward Guidance & Outlook
Ulta Beauty updated its fiscal 2023 outlook: net sales of $11.10 billion to $11.15 billion (narrowed from $11.05–$11.15 billion); comparable sales growth of 5.0% to 5.5% (raised from 4.5%–5.5%); 25–30 net new stores (no change); operating margin of 14.6% to 14.8% (no change); diluted EPS of $25.20 to $25.60 (raised from $25.10–$25.60); share repurchases of approximately $950 million (up from ~$900 million); capital expenditures of $400–$425 million (narrowed from $400–$475 million); and depreciation and amortization of $240–$245 million.
ULTA YoY Financials
Figures from SEC filings and company reports. Not investment advice.