Ulta Beauty reports USD 3.5B sales for Q4 FY24

USA – Ulta Beauty, a U.S.-based retailer specializing in beauty and cosmetics, has reported its financial performance for the Q4 FY24 despite a 1.9% net sales drop to USD 3.5 billion.

The sales dip was attributed to the absence of an additional week of sales that benefited fiscal 2023. 

However, according to the company, the new store contributions and increased comparable sales provided some offset.

Kecia Steelman, president and chief executive officer at Ulta Beauty, stated, “The Ulta Beauty team delivered stronger-than-expected revenue, profitability, and diluted EPS in the fourth quarter.¨

“I am incredibly optimistic about the future of Ulta Beauty, as I believe we have the correct elements to drive our success – a strong business model, an ambitious long-term plan, and passionate associates who bring our brand to life for our guests every day.¨

Gross profit increased by 0.5% due to lower inventory shrinkage, favourable channel mix, and higher merchandise margin. 

However, higher supply chain costs, lower other revenue, and reduced store and supply chain fixed costs partially offset this increase.

Operating income was USD 516.3 million, compared to USD 517.1 million in Q4 FY23.

Net income slightly declined to USD 393.3 million from USD 394.4 million.

The tax rates in Q4 FY24 decreased by 0.4%.

For the full fiscal year 2024, net sales rose modestly by 0.8% to USD 11.3 billion, driven by new store contributions. 

Gross profit rose slightly to USD 4.39 billion from USD 4.38 billion, but its share of net sales dropped to 38.8% from 39.1% due to lower merchandise margins, higher supply chain costs, and store cost inefficiencies, partially offset by reduced inventory shrink and a favourable channel mix.

Operating income declined by 5.9%.

The net income dropped to USD 1.2 billion from USD 1.3 billion. 

The fiscal year also recorded a 0.4% increase in tax rates.

Ulta Beauty anticipates net sales will rise to USD 11.6 billion in Fiscal 2025.

The company projects interest income of around USD 6 million.

 Ulta Beauty operates 1,445 retail stores across 50 states in America.

The company offers various cosmetics, skincare, haircare products, fragrances, and salon services. 

Recently, the company announced a significant leadership transition, with Dave Kimbell stepping down as CEO after leading the company since 2021. 

Kimbell will remain in an advisory role until June 2025. 

Kecia Steelman, formerly the company’s President and Chief Operating Officer, has succeeded him and taken over as President and CEO.

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