Thu, Aug 29, 8:10 PM (138 days ago)
For the second quarter ended August 3, 2024, Ulta Beauty reported net sales of $2,552,087, a modest increase of 0.9% from the prior year. However, comparable sales decreased by 1.2%, attributed to a drop in transactions. Gross profit fell by 1.6% to $978,177, with margins declining to 38.3% due to lower merchandise margins and fixed cost deleverage. SG&A expenses rose 7.3% to $644,821, raising their percentage of sales to 25.3%. Net income was $252,556, down from $300,102, reflecting increased expenses and declining gross profit. Cash and equivalents decreased significantly to $413,962 from $766,594, primarily due to share repurchases totaling $501,768. The company maintains a robust liquidity position with no outstanding borrowings under its credit facility. Despite macroeconomic pressures impacting consumer spending, Ulta remains focused on strategic investments and operational excellence to drive future growth. The ongoing share repurchase program and expansion of store locations are expected to support long-term financial health amid current uncertainties.