Ulta Beauty (ULTA) Q3 2024 Earnings
How Did ULTA Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: −4.49%.
Did ULTA Beat Earnings? Q3 2024 Results
Yes. Ulta Beauty reported Q3 2024 earnings of $5.14 a share on Dec 5, 2024, beating the $4.52 consensus estimate by 13.6%. Revenue was $2.5B against a $2.5B estimate.
Ulta Beauty delivered a stronger-than-expected third quarter of fiscal 2024, beating Wall Street on both revenue and earnings as new store contributions helped offset modest comparable-sales growth. GAAP diluted EPS of $5.14 topped the $4.52 consensus by 13.63%, edging past the $5.07 posted a year ago even as net income slipped to $242.18 million from $249.48 million, with an aggressive share buyback program, including $267.00 million worth of repurchases during the quarter alone, providing the per-share lift. Net sales rose 1.6% year-over-year to $2.53 billion, ahead of the $2.50 billion consensus, though comparable sales grew a modest 0.6%, well below the 4.5% pace of the prior-year period. The stock surged roughly 12% following the release, with several analysts lifting price targets on renewed confidence in the beauty sector. Management raised its full-year outlook, tightening the net sales range to $11.10 billion to $11.20 billion and lifting diluted EPS guidance to $23.20 to $23.75, signaling cautious but improving momentum heading into the holiday season.
- New store contributions drove net sales growth of 1.7%
- Comparable sales increased 0.6%, driven by 0.5% increase in transactions and 0.1% increase in average ticket
- Favorable channel mix and lower inventory shrink partially offset gross margin pressures
- Lower incentive compensation partially offset SG&A deleverage
- Skincare category gained share, rising to 23% of sales from 22%; fragrance rose to 10% from 9%
“The Ulta Beauty team delivered better-than-expected sales and profitability reflecting improved sales trends and strong financial discipline. I am proud of the progress we've made and encouraged by early signs that our efforts to reinforce our market position and drive improved performance are gaining traction. As we look to the remainder of fiscal 2024, we are focused on executing with excellence across our key initiatives to deliver in a dynamic environment.”
Ulta Beauty CEO, on the earnings call
What Was Ulta Beauty's Outlook in Q3 2024?
For fiscal 2024, Ulta Beauty raised its full-year guidance: net sales of $11.1 billion to $11.2 billion (narrowed from $11.0–$11.2 billion), comparable sales of (1%) to 0% (improved from (2%) to 0%), operating margin of 12.9% to 13.1% (raised from 12.7%–13.0%), diluted EPS of $23.20 to $23.75 (raised from $22.60–$23.50), capital expenditures of $400 million to $425 million (tightened from $400–$450 million), share repurchases of approximately $1 billion (unchanged), 60–65 net new stores (unchanged), 40–45 remodel/relocation projects (unchanged), interest income of $13–$14 million, effective tax rate of approximately 24%, and depreciation and amortization of $265–$270 million.
ULTA YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $2.5B | $2.5B | +1.7% |
| Gross Profit | $1.0B | $992.1M | +1.4% |
| Operating Income | $318.5M | $330.7M | −3.7% |
| Net Income | $242.2M | $249.5M | −2.9% |
Figures from SEC filings and company reports. Not investment advice.