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ULTA · Ulta Beauty

19 filings

10-K

ULTA 10-K Annual Reports

Ulta Beauty - 19 annual reports

Filing record · 2016–202610-K1110-Q328-K92

2026
Ulta Beauty Annual Report, Year Ended Jan 31, 2026
Ulta Beauty, Inc. reported fiscal 2025 (year ended January 31, 2026) net sales of $12.39 billion, up from $11.30 billion in fiscal 2024, with comparable sales increasing 5.4% driven by a 3.3% increase in average ticket and a 2.0% increase in transactions. Gross profit rose to $4.85 billion (39.1% of net sales versus 38.8%), but SG&A expenses grew to $3.30 billion, or 26.6% of net sales versus 24.9%, primarily due to higher incentive compensation, store payroll and benefits, and strategic investments. Operating income declined to $1.53 billion from $1.56 billion, and net income fell to $1.15 billion ($25.64 diluted EPS) from $1.20 billion ($25.34 in fiscal 2024, now $25.64 in fiscal 2025 per diluted share). The year included the acquisition of Space NK, a U.K. and Ireland luxury beauty retailer, for total net assets acquired of $399.2 million, including $213.8 million of goodwill. Ulta ended the year with 1,591 stores (1,505 in the U.S. and 86 Space NK stores), 67 new stores opened, and cash and cash equivalents of $424.2 million. Operating cash flow was $1.50 billion, capital expenditures were $434.8 million, and the company repurchased $898.5 million of common stock. As of January 31, 2026, $1.8 billion remained available under its $3.0 billion October 2024 share repurchase program. Management's strategy, Ulta Beauty Unleashed, is organized around three priorities: driving core business growth, scaling new accretive businesses (wellness, UB Marketplace, international expansion, and UB Media), and aligning the company's foundation for future success. The filing notes that the Ulta Beauty at Target shop-in-shop partnership will not be renewed when the current agreement concludes in August 2026. Management expects capital expenditures not to exceed $450 million in fiscal 2026 and anticipates continued inflationary and macroeconomic pressures.
Mar 26, 2026
2025
Ulta Beauty Annual Report, Year Ended Feb 1, 2025
Ulta Beauty, Inc. (ULTA) reported fiscal 2024 (ended February 1, 2025) net sales of $11.30 billion, up from $11.21 billion in fiscal 2023, which was a 53-week year. Comparable sales rose 0.7%, driven by a 1.1% increase in average ticket offset by a 0.4% decrease in transactions. Operating income declined to $1.56 billion from $1.68 billion, and net income fell to $1.20 billion ($25.34 diluted EPS) from $1.29 billion. The decline was driven by higher SG&A expenses, which rose to 24.9% of net sales from 24.0%, and a 30 basis point decline in gross profit margin to 38.8%. The filing attributes weaker sales trends to persistent inflationary and macroeconomic pressures on consumer spending. The company ended the year with $703.2 million in cash and no borrowings under its $800.0 million secured revolving credit facility. Operating cash flow was $1.34 billion, capital expenditures were $374.5 million, and the company repurchased $1.02 billion of common stock. As of February 1, 2025, $2.7 billion remained under the $3.0 billion share repurchase program authorized in October 2024. Management expects fiscal 2025 capital expenditures of up to $500 million. The company operated 1,445 stores at year-end, opening 66 new stores during fiscal 2024 and targeting more than 1,800 stores over the long term. Growth initiatives include the Ulta Beauty at Target shop-in-shops, the planned Mexico joint venture with Grupo Axo, and the Middle East franchise with Alshaya Group. The filing lists risks including macroeconomic conditions, tariffs, competition, cybersecurity, and dependence on top brand partners, which accounted for 54% of net sales.
Mar 27, 2025
2024
Ulta Beauty Annual Report, Year Ended Feb 3, 2024
Ulta Beauty, Inc. reported fiscal 2023 (the 53-week year ended February 3, 2024) with net sales of $11.21 billion, up from $10.21 billion in fiscal 2022, and net income of $1.29 billion, compared with $1.24 billion a year earlier. Comparable sales rose 5.7%, driven by a 7.4% increase in transactions partly offset by a 1.5% decrease in average ticket. Gross profit margin declined to 39.1% from 39.6%, mainly due to 80 basis points of merchandise margin deleverage from higher promotional activity and category mix, and 40 basis points of inventory shrink deleverage. SG&A rose to 24.0% of net sales from 23.5%, reflecting corporate overhead investments and wage investments. The company ended the year with $766.6 million in cash and cash equivalents, no outstanding borrowings under its credit facility, and $1.48 billion in operating cash flow. It repurchased $1.01 billion of common stock during the year, and as of February 3, 2024, $99.9 million remained under the 2022 repurchase authorization. On March 12, 2024, the Board authorized a new $2.0 billion repurchase program, and on March 13, 2024, the company amended its revolving credit facility to $800.0 million with a maturity of March 13, 2029. Management expects fiscal 2024 capital expenditures of up to $490 million, primarily for new, remodeled and relocated stores and for information technology and supply chain investments. The company operated 1,385 stores across 50 states at year end, opened 33 stores and closed 3 during the year, and planned to open a second market fulfillment center in fiscal 2024. Management highlighted ongoing risks from inflation, elevated interest rates, labor and transportation cost pressures, and inventory shrink, which it said had been rising relative to historical levels.
Mar 26, 2024
2023
Ulta Beauty Annual Report, Year Ended Jan 28, 2023
Ulta Beauty, Inc. reported fiscal 2022 (ended January 28, 2023) net sales of $10.21 billion, up from $8.63 billion in fiscal 2021, with comparable sales increasing 15.6%. Gross profit rose to $4.04 billion, with gross margin of 39.6% versus 39.0% a year earlier, driven by fixed-cost leverage, other revenue growth and channel mix, partially offset by inventory shrink and merchandise margin deleverage. Operating income increased to $1.64 billion and net income rose to $1.24 billion, or $24.01 per diluted share, compared with $985.8 million a year earlier. The company operated 1,355 stores across 50 states at year-end and opened 47 new stores during the year. The balance sheet remained strong, with cash and cash equivalents of $737.9 million, no borrowings outstanding under its $1.0 billion secured revolving credit facility, and stockholders' equity of $1.96 billion. Cash provided by operating activities was $1.48 billion, while the company repurchased $900.0 million of common stock during the year and had $1.1 billion remaining under its 2022 share repurchase program. Management expects fiscal 2023 capital expenditures of up to $475 million, primarily for new, remodeled and relocated stores, information technology (including the Project SOAR ERP upgrade) and supply chain optimization. The filing highlights ongoing risks, including cost pressures from inflation, wages and shipping, rising shrink, reliance on top brand partners (top ten accounted for 56% of fiscal 2022 net sales), macroeconomic and consumer spending uncertainty, and cybersecurity exposure. Management states that inflation did not have a material impact on fiscal 2022 sales, but it expects inflationary cost pressures to continue in 2023.
Mar 24, 2023
2022
Ulta Beauty Annual Report, Year Ended Jan 29, 2022
Ulta Beauty, Inc. reported fiscal 2021 (year ended January 29, 2022) net sales of $8.63 billion, up from $6.15 billion in fiscal 2020, with comparable sales increasing 37.9% after a 17.9% decline the prior year. Gross profit rose to $3.37 billion, or 39.0% of net sales, compared with 31.7% a year earlier, driven by fixed-cost leverage, merchandise margin improvements and favorable channel mix. Net income increased to $985.8 million, or $17.98 per diluted share, from $175.8 million in fiscal 2020, and no impairment, restructuring or other costs were recognized in fiscal 2021. The company ended the year with 1,308 stores across 50 states, no borrowings under its $1.0 billion revolving credit facility, and cash and cash equivalents of $431.6 million, down from $1.05 billion. Management repurchased $1.52 billion of common stock during fiscal 2021, nearly exhausting the $1.6 billion 2020 program, and on March 7, 2022 the Board authorized a new $2.0 billion repurchase program. Management expects fiscal 2022 capital expenditures of $425 million, focused on new, remodeled and relocated stores, information technology (including the Project SOAR ERP upgrade) and supply chain optimization. The filing flags continuing risks, including inflationary cost pressures on payroll, benefits, transportation and supply chain, ongoing COVID-19 uncertainty that has limited salon services, and dependence on top ten brand partners, which accounted for approximately 54% of net sales in fiscal 2021 versus 56% in fiscal 2020. Inventory rose to $1.50 billion from $1.17 billion, which management attributed to new stores, new brand launches and accelerated receipts to mitigate supply chain disruptions.
Mar 25, 2022
2021
Ulta Beauty Annual Report, Year Ended Jan 30, 2021
Ulta Beauty, Inc. reported fiscal 2020 (ended January 30, 2021) results sharply affected by the COVID-19 pandemic. Net sales declined $1.2 billion, or 16.8%, to $6.2 billion from $7.4 billion, and comparable sales decreased 17.9%. Transactions fell 24.5% while average ticket rose 8.8%. Gross profit fell 27.3% to $1.9 billion, and gross margin contracted 450 basis points to 31.7%. Net income declined 75.1% to $175.8 million, or $3.11 per diluted share, versus $705.9 million in fiscal 2019. The company recorded $114.3 million of impairment, restructuring and other costs, including the permanent closure of 19 stores and the suspension of its planned Canadian expansion. The balance sheet strengthened over the year. Cash and cash equivalents rose to $1.05 billion from $392.3 million, and the company drew $800.0 million on its $1.0 billion revolving credit facility in March 2020 and repaid it in full on September 2, 2020. Operating cash flow was $810.4 million, and capital expenditures were reduced to $151.9 million from $298.5 million. The company had no borrowings outstanding at fiscal year-end. Share repurchases resumed in the fourth quarter after being suspended in April 2020, and $1.5 billion remained available under the $1.6 billion 2020 program. Management expects the beauty category to return to growth as consumers recover, but states that the full extent of the pandemic's impact remains uncertain. The company continues to pursue its six strategic priorities, including omnichannel operations, loyalty program growth, and its Efficiencies for Growth cost program. It also plans a long-term store footprint of 1,500 to 1,700 U.S. stores, versus 1,264 at year-end.
Mar 26, 2021
2020
Ulta Beauty Annual Report, Year Ended Feb 1, 2020
Ulta Beauty, Inc. reported net sales of $7.40 billion for fiscal 2019 (ended February 1, 2020), up from $6.72 billion in fiscal 2018, driven by 80 net new stores (1,254 stores across 50 states at year-end), a 5.0% comparable sales increase, and $23.4 million of higher other revenue. Gross profit rose to $2.68 billion, with gross margin improving to 36.2% from 35.9%, while SG&A increased to 23.8% of net sales from 22.9%, reflecting investments in growth and the Efficiencies for Growth program. Net income was $705.9 million, or $12.15 per diluted share, compared with $658.6 million in fiscal 2018. The balance sheet was strengthened by $392.3 million in cash and cash equivalents and $110.0 million in short-term investments, with no borrowings outstanding under the credit facility at year-end. Operating cash flow was $1.10 billion, and the company repurchased $681.0 million of common stock during the year. Adoption of ASC 842 added $1.54 billion of operating lease assets and $1.94 billion of lease liabilities to the balance sheet. The filing is dominated by COVID-19 disclosures. On March 17, 2020, Ulta announced the temporary closure of all U.S. stores, and management stated that the impact is too early to quantify. Management withdrew fiscal 2020 guidance, approved a new $1.6 billion share repurchase program, amended its credit facility to $1.0 billion maturing in 2025, and drew down $800 million under the facility as a precautionary measure. The company also noted that the cosmetics category in the overall U.S. market experienced mid-single digit declines through fiscal 2019.
Mar 27, 2020
2019
Ulta Beauty Annual Report, Year Ended Feb 2, 2019
Ulta Beauty, Inc. reported fiscal 2018 (52 weeks ended February 2, 2019) net sales of $6.72 billion, up from $5.88 billion in fiscal 2017, with net sales increasing $832.1 million, or 14.1%. Comparable sales rose 8.1%, driven by a 5.1% increase in retail stores and salon services and a 35.4% increase in e-commerce. Net income increased $103.3 million, or 18.6%, to $658.6 million, and diluted EPS was $10.94 versus $8.96 in fiscal 2017. Gross profit margin rose to 35.9% from 35.6%, while SG&A expenses rose to 22.9% of net sales from 21.9%, reflecting new revenue recognition accounting (ASC 606) and investments in store labor and growth initiatives. The company ended the year with 1,174 stores across 50 states, after opening 107 and closing 7, and with 31.8 million active Ultamate Rewards loyalty members who generated more than 95% of net sales. Management expects to open approximately 70 to 80 new stores per year and sees long-term potential for 1,500 to 1,700 U.S. stores. Expected capital expenditures for fiscal 2019 are approximately $390 million, and the company plans to fund them from operations. Cash and cash equivalents were $409.3 million at year-end, with no borrowings under its $400 million credit facility. Shareholder returns were significant: the company repurchased $616.2 million of common stock in fiscal 2018, and on March 14, 2019 announced a new $875.0 million share repurchase program. The company also announced a three-year Efficiencies for Growth cost program targeting savings of $150 million to $200 million. Management's risk factors highlight dependence on discretionary consumer spending, competition, vendor concentration (top ten vendors were approximately 62% of fiscal 2018 net sales), and distribution capacity as the store base grows.
Apr 2, 2019
2018
Ulta Beauty Annual Report, Year Ended Feb 3, 2018
Ulta Beauty, Inc. (filing name; Ulta Beauty is the company's name in this 10-K for the fiscal year ended February 3, 2018) reported fiscal 2017 net sales of $5,884.5 million, up $1,029.8 million, or 21.2%, from $4,854.7 million in fiscal 2016. The fiscal year included 53 weeks, with the extra week contributing approximately $108.8 million in net sales. Total comparable sales increased 11.0%, driven by a 7.1% increase in retail and salon services and a 59.9% increase in e-commerce. E-commerce sales reached $568.7 million, or 9.7% of total net sales. Operating income rose to $785.3 million from $654.8 million, and net income increased 35.5% to $555.2 million, or $8.96 per diluted share. Income tax expense was $231.6 million, reflecting an effective tax rate of 29.4% that benefited from Tax Reform. The company expects its fiscal 2018 effective tax rate to be significantly lower. The company operated 1,074 stores in 48 states and the District of Columbia at year-end, opening 102 new stores and remodeling 11 during fiscal 2017. Management expects to open approximately 100 new stores per year for the next several years and sees a long-term potential of 1,400 to 1,700 U.S. stores. Cash flow from operations was $779.4 million, and capital expenditures were $440.7 million, with about $375 million budgeted for fiscal 2018. The company had no borrowings outstanding under its $400.0 million revolving credit facility. Under the 2017 share repurchase program, the company bought back $367.6 million of stock during fiscal 2017, and on March 15, 2018 it authorized a new $625.0 million program. Key risks cited include consumer discretionary spending sensitivity, intense competition, dependence on top vendors (about 64% of net sales from the top ten vendor partners), distribution capacity as the company adds a sixth distribution center in Fresno, and cybersecurity exposure. The auditor, Ernst & Young LLP, issued unqualified opinions on the financial statements and on internal control over financial reporting.
Apr 3, 2018
2017
Ulta Beauty Annual Report, Year Ended Jan 28, 2017
Ulta Beauty, Inc. (formerly Ulta Salon, Cosmetics & Fragrance, Inc.) reported fiscal 2016 (year ended January 28, 2017) net sales of $4,854.7 million, up from $3,924.1 million in fiscal 2015, an increase of $930.6 million, or 23.7%. Total comparable sales rose 15.8%, with retail and salon comparable sales up 13.4% and e-commerce comparable sales up 56.2%. Net income increased 28.0% to $409.8 million, and diluted earnings per share were $6.52, compared with $4.98 in fiscal 2015. Gross margin expanded to 36.0% of net sales from 35.3%, while SG&A rose to 22.1% of net sales from 22.0%. The company operated 974 stores across 48 states and the District of Columbia at year-end, after opening 104 new stores and closing four. Management expects to open approximately 100 stores per year for the next several years, with a long-term potential of 1,400 to 1,700 U.S. stores. E-commerce represented approximately 7% of sales, and the company targets about 10% of total sales by the end of fiscal 2019. Operating cash flow was $634.7 million, capital expenditures were $373.7 million, and the company repurchased $344.3 million of common shares. It had no borrowings outstanding under its $200 million secured revolving credit facility at year-end. The filing also reflects the holding company reorganization completed on January 29, 2017, under which Ulta Beauty, Inc. became successor to the former public company. On March 9, 2017, the Board authorized a new $425 million share repurchase program. Approximately 23 million active Ultamate Rewards members generated more than 90% of annual net sales, a key dependency highlighted in the filing.
Mar 28, 2017
2016
Ulta Beauty Annual Report, Year Ended Jan 30, 2016
Ulta Salon, Cosmetics & Fragrance, Inc. reported fiscal 2015 (ended January 30, 2016) net sales of $3,924.1 million, up from $3,241.4 million in fiscal 2014, with net income of $320.0 million, or $4.98 per diluted share, compared with $257.1 million in fiscal 2014. Comparable sales rose 11.8%, driven by a 10.0% increase in retail and salon comparable sales and a 47.5% increase in e-commerce. The company opened 103 stores in fiscal 2015 (100 net of closings), ending the year with 874 stores in 48 states, and reported gross margin of 35.3% and operating income of $506.3 million. Cash flow from operations was $375.9 million, and capital expenditures were $299.2 million, with no borrowings outstanding under its $200 million credit facility. The company expects to open about 100 new stores per year for the next several years and has a long-term goal of growing e-commerce to roughly 10% of total sales from about 6% today. Capital expenditures are budgeted at approximately $391 million for fiscal 2016, and a fifth distribution center in Dallas, Texas is expected to open in 2016. Shareholder returns were also a focus: the company repurchased $167.4 million of stock in fiscal 2015 and, on March 10, 2016, authorized a new $425 million repurchase program that includes a $200 million accelerated share repurchase agreement. Key risks cited in the filing include exposure to discretionary consumer spending, competition from larger retailers with greater resources, reliance on distribution center performance and information systems, and dependence on vendor partners, whose top ten accounted for about 50% of net sales. The company also noted that it has no long-term supply agreements with vendors and that its e-commerce growth could partly cannibalize store sales.
Mar 30, 2016
2015
Ulta Beauty Annual Report, Year Ended Jan 31, 2015
Ulta Salon, Cosmetics & Fragrance, Inc. (now Ulta Beauty, Inc.) reported fiscal 2014 (year ended January 31, 2015) net sales of $3,241.4 million, up 21.4% from $2,670.6 million in fiscal 2013, and net income of $257.1 million, up 26.8% from $202.8 million. Total comparable sales increased 9.9%, driven by a 8.1% increase in retail and salon comparable sales and a 56.4% increase in e-commerce comparable sales. Operating income rose to $410.4 million, with gross margin of 35.1% and SG&A at 22.0% of net sales. Diluted EPS was $3.98, compared with $3.15 in the prior year. The company operated 774 stores in 47 states at year-end, after opening 100 new stores in fiscal 2014. Management expects to open approximately 100 new stores per year for the next several years, with a long-term potential of more than 1,200 stores in the United States. The company plans to build two additional distribution centers, in Greenwood, Indiana (expected 2015) and Dallas, Texas (expected 2016), and projects fiscal 2015 capital expenditures of approximately $297 million. Cash and cash equivalents were $389.1 million, plus $150.2 million of short-term investments, and the company had no borrowings outstanding under its $200 million secured revolving credit facility. The company's loyalty program, with approximately fifteen million active members, generates more than 80% of annual total net sales. Key risks disclosed include economic conditions affecting discretionary spending, competition, distribution capacity, dependence on vendors (top ten vendors represented approximately 50% of net sales), and a pending California wage-and-hour class action. On March 12, 2015, the Board authorized a $100 million increase to the 2014 Share Repurchase Program, bringing available authorization to approximately $360.1 million after the increase, and no cash dividends were declared in fiscal 2014 or 2013.
Apr 1, 2015
2014
Ulta Beauty Annual Report, Year Ended Feb 1, 2014
Ulta Salon, Cosmetics & Fragrance, Inc. reported net sales of $2,670.6 million for fiscal 2013 (the 52 weeks ended February 1, 2014), up from $2,220.3 million in fiscal 2012, with net income of $202.8 million, or $3.15 per diluted share, compared with $172.5 million, or $2.68 per diluted share, the prior year. The company operated 675 stores in 46 states at year-end after opening 127 new stores, and its comparable store sales increased 7.9%, with retail and salon comparable store sales up 6.1% and e-commerce comparable store sales up 76.6%. Gross margin was 35.2% versus 35.3% a year earlier, as SG&A rose to 22.3% of net sales from 22.0%, reflecting planned investments in supply chain, e-commerce and store labor. The balance sheet remained unlevered, with cash and cash equivalents of $419.5 million at year-end and no borrowings outstanding under the $200 million secured revolving credit facility, which was extended to December 2018. Operating cash flow was $327.7 million and capital expenditures were $226.0 million. The company repurchased $37.3 million of stock during the year and had $112.7 million remaining under its $150 million repurchase program. Management plans to open about 100 new stores in fiscal 2014, budgets roughly $265 million in capital expenditures, and is embarking on a multi-year supply chain project that includes a fourth distribution center expected to open in 2015. Management expects to share its long-term growth plan and financial targets in the fall of 2014. The filing also highlights risks including economic sensitivity of discretionary beauty spending, competition, dependence on a top ten vendor group that represented approximately 51% of net sales, the pending California wage-and-hour class action, and rising store opening costs.
Apr 2, 2014
2013
Ulta Beauty Annual Report, Year Ended Feb 2, 2013
Ulta Salon, Cosmetics & Fragrance, Inc. reported fiscal 2012 (53 weeks ended February 2, 2013) net sales of $2,220.3 million, up from $1,776.2 million in fiscal 2011, with net income of $172.5 million, or $2.68 per diluted share, compared to $120.3 million, or $1.90 per diluted share, a year earlier. The company operated 550 stores in 45 states at year-end after opening 102 new stores during the year. Comparable store sales increased 8.8%, primarily driven by a 6.5% increase in store traffic, and operating income rose to $280.0 million from $196.2 million, with operating margin reaching 12.6% of net sales versus 11.0% in fiscal 2011. Management changes and capital allocation were notable in the filing. President and CEO Carl S. Rubin resigned in February 2013, and director Dennis K. Eck is serving as Interim Chief Executive Officer until a permanent replacement is found. Scott M. Settersten was named permanent Chief Financial Officer in March 2013. The Board authorized a stock repurchase program of up to $150 million on March 18, 2013, and the company paid a $1.00 per share special cash dividend totaling $62.5 million in May 2012. The company had no borrowings outstanding under its $200 million secured revolving credit facility at fiscal year-end. The company identified ongoing risks including concentration among its top ten vendors, which accounted for approximately 53% of net sales in fiscal 2012, reliance on power-center locations and their anchor-store traffic, and the planned expansion toward approximately 1,200 U.S. stores. The filing also notes that management expects comparable store sales growth in the long term of 4% to 6%, below the 8.8% achieved in fiscal 2012, and it states that the company does not expect the 8.8% increase to continue.
Apr 3, 2013
2012
Ulta Beauty Annual Report, Year Ended Jan 28, 2012
Ulta Salon, Cosmetics & Fragrance, Inc. reported fiscal 2011 (52 weeks ended January 28, 2012) net sales of $1,776.2 million, up from $1,454.8 million in fiscal 2010, with net income rising to $120.3 million from $71.0 million. Diluted earnings per share were $1.90 versus $1.16. Operating income was $196.2 million, and operating margin improved to 11.0% of net sales from 8.2%, driven by a 10.9% comparable store sales increase and gross margin expansion to 34.7% from 33.3%. The company ended the year with 449 stores in 43 states after opening 61 new stores, and cash and cash equivalents of $253.7 million with no borrowings outstanding under its $200 million credit facility. The company stated that it does not expect the 10.9% comparable store sales increase to continue, and its long-term comparable store sales target is 3% to 5%. Management's long-term goal is to grow to over 1,000 U.S. stores. The filing also disclosed a $1.00 per share special cash dividend (about $62 million, payable May 15, 2012) and a CFO succession plan, as CFO Gregg R. Bodnar intends to step down for family reasons once a successor is identified. Key risks highlighted include reliance on top ten vendors, which represented approximately 53% of net sales; dependence on power center traffic; execution risk in new store and distribution center expansion; and a principal stockholder holding approximately 18% of outstanding common stock. The company also faces a newly filed California wage-and-hour class action.
Mar 28, 2012
2011
Ulta Beauty Annual Report, Year Ended Jan 29, 2011
Ulta Salon, Cosmetics & Fragrance, Inc. reported net sales of $1,454.8 million for fiscal 2010 (ended January 29, 2011), up from $1,222.8 million in fiscal 2009, with net sales increasing $232.0 million, or 19.0%. Comparable store sales rose 11.0%, driven primarily by an 8.6% increase in store traffic. Gross profit increased 28.6% to $484.1 million, and gross margin rose to 33.3% of net sales from 30.8%. Operating income was $118.9 million compared with $68.2 million, and net income was $71.0 million, or $1.16 per diluted share, versus $39.4 million, or $0.66 per diluted share, in fiscal 2009. The company opened 47 new stores during fiscal 2010, ending the year with 389 stores in 40 states, and noted it does not expect the 11.0% comparable store sales increase to continue, citing a long-term target of 3% to 5%. The company ended fiscal 2010 with cash and cash equivalents of $111.2 million, up from $4.0 million a year earlier, and no borrowings outstanding under its $200 million secured revolving credit facility, which it entered into with Wells Fargo on August 31, 2010. Net cash provided by operating activities was $176.5 million, and capital expenditures were $97.1 million. The company's long-term growth targets include reaching over 1,000 U.S. stores and annual net income growth of 25% to 30%, based on comparable store sales increases of 3% to 5%. The filing identifies risks including reduced consumer discretionary spending, dependence on vendors (the top ten vendors represent approximately 48% of net sales), reliance on two distribution facilities with a third planned for fiscal 2012, and a principal stockholder holding approximately 18% of outstanding common stock. Two California employment class actions were settled, and the filing states that the settlement amounts are not material.
Mar 30, 2011
2010
Ulta Beauty Annual Report, Year Ended Jan 30, 2010
Ulta Salon, Cosmetics & Fragrance, Inc. reported net sales of $1,222.8 million for fiscal 2009 (ended January 30, 2010), up from $1,084.6 million in fiscal 2008, with net income of $39.4 million, or $0.66 per diluted share, compared with $25.3 million in fiscal 2008. The company describes itself as the largest beauty retailer offering one-stop shopping for prestige, mass and salon products and salon services in the United States. It operated 346 stores in 38 states at year-end after opening 37 stores and remodeling 6 in fiscal 2009, and it reduced its new store program for 2009 because of the economic downturn. Comparable store sales rose 1.4% for the year after a 0.2% increase in fiscal 2008, with positive comparable store sales in the third and fourth quarters of 2009. Balance sheet and cash flow improved meaningfully. Net cash provided by operating activities was $172.8 million, compared with $75.2 million in fiscal 2008, and the company had no outstanding borrowings under its $200 million credit facility at January 30, 2010, versus $106.0 million a year earlier. Gross profit as a percentage of net sales rose to 30.5% from 30.2%, while SG&A expenses decreased to 24.4% of net sales from 24.6%. Management stated that its long-term target for new store growth is 15% to 20%, that it sees potential for more than 1,000 stores in the United States, and that its growth depends on its store expansion, prestige brand offerings and e-commerce. Key risks highlighted in the filing include sensitivity of discretionary spending to the economy, competition from department stores, specialty and mass retailers, dependence on vendors (the top ten vendors represented approximately 46% of net sales), a pending California class action over the classification of store and salon managers, and concentration of ownership, with principal stockholders controlling approximately 35% of outstanding common stock. The company has never declared cash dividends and its credit agreement restricts them.
Mar 31, 2010
2009
Ulta Beauty Annual Report, Year Ended Jan 31, 2009
Ulta Salon, Cosmetics & Fragrance, Inc. reported net sales of $1,084.6 million for fiscal 2008 (ended January 31, 2009), up from $912.1 million in fiscal 2007, driven mainly by 62 net new stores and a 0.2% comparable store sales increase. Comparable store sales decelerated through the year, with a 5.5% decrease in the fourth quarter. Gross profit rose to $327.9 million, but gross margin fell to 30.2% from 31.1%, and net income was $25.3 million, essentially flat versus $25.3 million in fiscal 2007. Diluted EPS was $0.43 versus $0.48 a year earlier. The company ended the year with 311 stores in 36 states and $106.0 million of outstanding borrowings under its $200 million secured revolving credit facility. Management said it reduced its 2009 new store program to approximately 35 stores, representing expected square footage growth of approximately 11%, citing a decline in suitable commercial real estate, and expects comparable store sales to be negatively affected in fiscal 2009. Cash provided by operating activities was $75.2 million, and capital expenditures were $110.9 million. The filing also highlights ongoing risk, including a consolidated securities class action related to the company's IPO. The court denied the defendants' motion to dismiss on March 19, 2009, and the company says it cannot reasonably estimate potential losses. Principal stockholders control approximately 44% of common stock, and the company does not expect to pay dividends in the foreseeable future.
Apr 2, 2009
2008
Ulta Beauty Annual Report, Year Ended Feb 2, 2008
Ulta Salon, Cosmetics & Fragrance, Inc. reported net sales of $912.1 million for fiscal 2007 (ended February 2, 2008), up from $755.1 million in fiscal 2006, driven by the opening of 53 new stores and a 6.4% comparable store sales increase. Gross profit rose to $283.6 million, with gross margin flat at 31.1% of net sales, while selling, general and administrative expenses increased to $225.2 million and pre-opening expenses rose to $11.8 million. Operating income was $46.7 million and net income was $25.3 million, though net income available to common stockholders was $14.1 million after $11.2 million of preferred stock dividends. The company operated 249 stores in 31 states at year-end. The company completed its initial public offering on October 30, 2007, selling 7,666,667 shares at $18.00 per share for net proceeds of $123.6 million. Proceeds were used to pay $93.0 million of accumulated preferred dividends in arrears, redeem $4.8 million of Series III preferred stock, and reduce borrowings by $25.8 million. Cash flow from operations fell to $46.9 million, while capital expenditures rose to $101.9 million, and total debt was $74.8 million at year-end. Management's growth plan targets more than 1,000 stores over the next 10 years and includes a second distribution facility in Phoenix, Arizona, expected to begin shipping in late April 2008. Investors should weigh the company's growth against several risks disclosed in the filing: a putative consolidated securities class action related to the IPO prospectus, in which the company says it cannot reasonably estimate potential losses; reliance on its top ten vendors, which represented approximately 45% of net sales; and the expectation that the $50 million accordion option on its credit facility will be needed during fiscal 2008. The company also expects a significant amount of shares to become eligible for sale after the lock-up expires on or about April 21, 2008.
Apr 16, 2008