Ulta Beauty(ULTA) - 2026 Q1 - Quarterly Report

Financial Performance - Net sales for the 13 weeks ended May 3, 2025, were $2,848,367, an increase of 4.5$2,725,848 for the same period in 2024[80] - Comparable sales increased by 2.9% for the 13 weeks ended May 3, 2025, compared to a 1.6% increase for the same period in 2024[80] - Gross profit for the quarter was $1,114,219, up from$1,069,780 in the prior year, reflecting a gross margin improvement[80] - Operating income for the quarter was $401,777, slightly higher than$400,948 in the same quarter last year[80] - Net income for the 13 weeks ended May 3, 2025, was $305,052, compared to$313,113 for the same period in 2024, indicating a decrease of 2.6%[80] Expenses and Costs - Selling, general and administrative expenses rose to $710,613 from$665,913, reflecting increased operational costs[80] - Selling, general and administrative (SG&A) expenses increased by $44.7 million or 6.7$710.6 million, with SG&A as a percentage of net sales rising to 24.9%[84] - Net income decreased to $305.1 million for the 13 weeks ended May 3, 2025, down from$313.1 million in 2024, primarily due to increased SG&A expenses and income tax expense[88] Store Operations - The number of stores at the end of the period increased to 1,451 from 1,395 year-over-year[80] - The company opened six new stores during the 13 weeks ended May 3, 2025, compared to 12 new stores opened in the same period in 2024[99] Cash and Liquidity - Cash and cash equivalents were $454.6 million as of May 3, 2025, compared to$524.6 million on May 4, 2024[89] - Net cash provided by operating activities increased to $220.0 million for the 13 weeks ended May 3, 2025, compared to$159.3 million in 2024[95] - The company had no outstanding borrowings under its credit facility as of May 3, 2025, indicating strong liquidity management[105] Market Outlook and Strategy - The company anticipates that persistent inflation and macroeconomic pressures may negatively impact sales trends throughout fiscal 2025[68] - The long-term growth strategy includes expanding omnichannel capabilities and opening new stores to drive profitable growth[66] - The beauty market is expected to continue expanding, supported by ongoing consumer engagement with beauty products[67] Inventory Management - Merchandise inventories increased by $215.5 million or 11.3$2.1 billion as of May 3, 2025[98] Share Repurchase - The company repurchased 986,733 shares at a total cost of $362.1 million during the 13 weeks ended May 3, 2025[108]