Kecia Steelman, President and CEO, said,
“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.”
Fourth Quarter 2024
Net sales decreased 1.9% to $3.5 billion compared to $3.6 billion, primarily due to the benefit of an extra week of sales in fiscal 2023, partially offset by new store contributions and increased comparable sales. Net sales in the 53rd week of fiscal 2023 were approximately $181.9 million.
Operating income was $516.3 million, or 14.8% of net sales, compared to $517.1 million, or 14.5% of net sales. Gross profit was $1.33 billion compared to $1.34 billion in 2023.
Gross profit in 2024 increased to 38.2% compared to 37.7%, mostly due to lower inventory shrink, favorable channel mix, and higher merchandise margin, partially offset by higher supply chain costs, lower other revenue, and deleverage of store and supply chain fixed costs.
Full Fiscal Year 2024
Net sales increased 0.8% to $11.3 billion compared to $11.2 billion, primarily due to new store contributions, partially offset by the benefit of the 53rd week of sales in fiscal 2023.
Net income was $1.2 billion compared to $1.3 billion. Gross profit was $4.39 billion compared to $4.38 billion in 2023. As a percentage of net sales, gross profit decreased to 38.8% compared to 39.1%, mostly due to lower merchandise margin, deleverage of store fixed costs, and higher supply chain costs, partially offset by lower inventory shrink and favorable channel mix.
Steelman added,
“I am incredibly optimistic about the future of Ulta Beauty, as I believe we have the right 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. Fiscal 2025 will be a pivotal year as we make purposeful investments to fuel our future growth and move quickly to optimize our business. While it will take time to see the impact of these efforts, we are confident these investments will help reignite our momentum and unlock sustained growth and long-term value for our shareholders.”
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