Ulta Beauty (ULTA) Q4 2024 Earnings
How Did ULTA Stock React to Q4 2024 Earnings?
S&P 500 over the same 30 days: −4.48%.
Did ULTA Beat Earnings? Q4 2024 Results
Yes. Ulta Beauty reported Q4 2024 earnings of $8.46 a share on Mar 13, 2025, beating the $7.15 consensus estimate by 18.4%. Revenue was $3.5B against a $3.5B estimate.
Ulta Beauty closed out fiscal 2024 on a stronger-than-expected note, posting Q4 GAAP diluted EPS of $8.46, well ahead of the $7.15 consensus estimate by 18.37%, while revenue of $3.49 billion edged past the $3.47 billion Wall Street forecast by 0.59%. The headline revenue decline of 1.9% year over year was largely a calendar artifact, as the prior-year period included a 53rd week that contributed roughly $181.90 million in sales; on a comparable-store basis, sales actually rose 1.5%, driven by a 3.0% increase in average ticket. Gross margin expanded 50 basis points to 38.2%, aided by lower inventory shrink and favorable merchandise mix, helping lift operating income to $516.32 million. Despite the solid quarter, investors are watching the road ahead carefully, as management guided fiscal 2025 EPS to $22.50 to $22.90, well below fiscal 2024 levels, reflecting intentional investments CEO Kecia Steelman described as necessary to reignite growth, even as she acknowledged those efforts will take time to yield results.
- Comparable sales increase of 1.5% driven by 3.0% increase in average ticket
- Lower inventory shrink improved gross margin
- Favorable channel mix contributed to gross margin expansion
- Higher merchandise margin in Q4
- New store contribution from 60 net new stores opened during fiscal 2024
- Fragrance category grew to 17% of Q4 sales from 15% year-over-year
“The Ulta Beauty team delivered stronger-than-expected revenue, profitability, and diluted EPS in the fourth quarter. I am incredibly proud of our team's collective impact on the business and the care they showed our guests throughout the holiday season, positioning us to finish fiscal 2024 ahead of our expectations.”
Ulta Beauty CEO, on the earnings call
What Was Ulta Beauty's Outlook in Q4 2024?
For fiscal 2025, Ulta Beauty expects net sales of $11.5 billion to $11.6 billion, comparable sales growth of 0% to 1%, approximately 60 net new stores, operating margin of 11.7% to 11.8%, and diluted EPS of $22.50 to $22.90. The company plans approximately $900 million in share repurchases, capital expenditures of $425 million to $500 million, depreciation and amortization of $290 million to $300 million, interest income of approximately $6 million, and an effective tax rate of approximately 24.5%. Management characterized fiscal 2025 as a pivotal year with purposeful investments to fuel future growth.
ULTA YoY Financials
| Metric | Q4 2024 | Q4 2023 | Year over year |
|---|---|---|---|
| Revenue | $3.5B | $3.6B | −1.9% |
| Gross Profit | $1.3B | $1.3B | −0.5% |
| Operating Income | $516.3M | $520.2M | −0.7% |
| Net Income | $393.3M | $394.4M | −0.3% |
Figures from SEC filings and company reports. Not investment advice.