In This Article:
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Net Sales: Decreased 1.9% to $3.5 billion for the fourth quarter.
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Comparable Sales: Increased 1.5% for the 13-week period.
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Gross Margin: Increased 50 basis points to 38.2% for the quarter.
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SG&A Expenses: $816 million, $5 million lower than last year.
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Operating Profit: Approximately flat with last year, with an operating margin increase of 30 basis points to 14.8% of sales.
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Diluted EPS: Increased 4.7% to $8.46 for the quarter.
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Full-Year Net Sales: Increased 0.8% to $11.3 billion.
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Full-Year Comparable Sales: Increased 0.7%.
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Full-Year Gross Margin: Deleveraged 30 basis points to 38.8%.
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Full-Year Operating Profit: 13.9% of sales compared to 15% in fiscal 2023.
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Full-Year Diluted EPS: Decreased 2.7% to $25.34 per share.
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Cash and Cash Equivalents: $703 million at the end of the quarter.
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Inventory: Increased 13% to $2 billion.
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Cash from Operations: Generated more than $1.3 billion.
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Stock Buyback Program: Returned $1 billion in capital to shareholders.
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2025 Net Sales Outlook: Expected between $11.5 billion and $11.6 billion.
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2025 Operating Margin Outlook: Expected between 11.7% and 11.8% of net sales.
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2025 Diluted EPS Outlook: Expected between $22.50 and $22.90 per share.
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2025 CapEx: Planned between $425 million and $500 million.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ulta Beauty Inc (NASDAQ:ULTA) finished the year ahead of expectations, with strong revenue growth and better-than-expected performance across the P&L.
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The company successfully launched 40 new brands, including exclusive ones like XO Khloe and WYN BEAUTY, enhancing its assortment.
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Ulta Beauty Inc (NASDAQ:ULTA) expanded its accessibility by opening 60 net new stores and 100 new Ulta Beauty at Target shop-in-shop locations.
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The loyalty program grew by 3% to a record high of 44.6 million members, indicating strong customer engagement.
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The company initiated plans to expand internationally, including launching in Mexico and the Middle East in 2025.
Negative Points
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Ulta Beauty Inc (NASDAQ:ULTA) lost market share in the beauty category for the first time in 2024, highlighting increased competitive pressure.
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The in-store presentation and guest experience were not as strong as desired, indicating execution challenges.
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Operating profit is expected to decrease in the low-double-digit range in 2025 due to strategic investments and inflationary pressures.
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The company anticipates a transitional year in 2025, with flat to 1% comp sales growth, reflecting cautious guidance amidst consumer uncertainty.
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Gross margin is expected to deleverage in 2025, primarily due to store occupancy and supply chain costs, despite efforts to optimize costs.