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Ulta Beauty Annual Report, Year Ended Jan 28, 2012

Filing Date
Filed March 28, 2012
Period End
January 28, 2012
Security
ULTA
One revenue dollarkept$0.07
In the record · 2016–202610-K1110-Q328-K92

ULTA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 92 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Apr ’19Apr ’19
  2. Leadership change8-K · Jan ’22Jan ’22
  3. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed March 28, 2012. Cited figures are marked; the original filing is the authoritative source.

Ulta Salon, Cosmetics & Fragrance, Inc. reported fiscal 2011 (52 weeks ended January 28, 2012) net sales of $1,776.2 milliona, 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 $1.90b 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 $1.00c 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%d 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.

02—Key points

Key Highlights

  1. Net sales rose 22.1% to $1,776.2 million in fiscal 2011, with comparable store sales up 10.9%, primarily on a 10.1% increase in store traffic.
  2. Net income increased 69.3% to $120.3 million; diluted EPS was $1.90 versus $1.16 in fiscal 2010.
  3. Gross profit margin expanded to 34.7% of net sales from 33.3%, and operating margin improved to 11.0% from 8.2%.
  4. Opened 61 new stores in fiscal 2011, ending the year with 449 stores in 43 states; the average investment per new store was approximately $0.9 million.
  5. Cash and cash equivalents were $253.7 million at year-end, up from $111.2 million, with no borrowings under the $200 million revolving credit facility.
  6. Board declared a $1.00 per share special cash dividend (approximately $62 million), payable May 15, 2012.
  7. Top ten vendors accounted for approximately 53% of net sales, and the CFO announced a succession plan.

03—One dollar

Follow one dollar

Of each $1.00 of revenue in FY2012, Ulta Beauty kept $0.07.

  1. Revenue$1.78B100.0%
  2. Cost of revenue−$1.16B65.3%
  3. Gross profit$616.8M34.7%
  4. Operating costs−$420.6M23.7%
  5. Operating income$196.2M11.0%
  6. Interest, other & tax−$75.9M4.3%
  7. Net income$120.3M6.8%
Computed from 10-KFY2012filed March 28, 2012Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

Where FY2012 revenue went

$1.78B
  • Cost of revenue: $1.16B, 65% of revenue
  • SG&A: $410.7M, 23% of revenue
  • Net income: $120.3M, 6.8% of revenue
  • Other operating costs: $10.0M, 0.6% of revenue
  • Interest, other & tax: $75.9M, 4.3% of revenue

Kept 6.8% as net incomeOther operating costs $10.0M · 0.6%

Full revenue history →

04—Financials

Financial Highlights

Figures from 10-KFY2012filed March 28, 2012
Revenue$1.78B34.7% Gross MarginNet Income$120.26M6.8% Net MarginEPS (Diluted)$1.90Free Cash Flow$92.25M

Financial Statements

FY2012 against FY2011

Line itemFY2012FY2011Change
Revenue$1.78B$1.45B+22.1%
Cost of Revenue$1.16B$970.75M+19.4%
Gross Profit$616.84M$484.08M+27.4%
SG&A Expenses$410.66M$358.11M+14.7%
Operating Income$196.19M$118.88M+65.0%
Interest Expense$587K$755K−22.3%
Net Income$120.26M$71.03M+69.3%
EPS (Basic)$1.96$1.20+63.3%
EPS (Diluted)$1.90$1.16+63.8%
Shares Outstanding (Basic)61.26M58.96M+3.9%
Shares Outstanding (Diluted)63.33M61.29M+3.3%

05—Questions

Frequently Asked Questions

  1. How did Ulta perform financially in fiscal 2011?

    Net sales grew to $1,776.2 million from $1,454.8 million, operating income rose to $196.2 million from $118.9 million, and net income reached $120.3 million from $71.0 million. Diluted EPS was $1.90 compared with $1.16.

  2. Does management expect the 10.9% comparable store sales growth to continue?

    No. The company stated that it does not expect the fiscal 2011 comparable store sales increase of 10.9% to continue, and its long-term annual target is 3% to 5%.

  3. What is Ulta's store expansion plan?

    Ulta opened 61 new stores in fiscal 2011 and expects to keep growing, with a long-term potential of over 1,000 U.S. stores. The company also plans a third distribution center in Chambersburg, Pennsylvania, expected to open in fiscal 2012.

  4. What are the main dividend and leadership developments?

    The board declared a $1.00 per share special cash dividend totaling about $62 million, payable May 15, 2012. On March 8, 2012, the company also announced a CFO succession plan because Gregg R. Bodnar intends to step down for family-related relocation once a successor is found.

  5. What are the key concentration risks for investors?

    The top ten vendors represented approximately 53% of net sales, and the company has no long-term supply agreements with vendors. A principal stockholder owns or controls approximately 18% of outstanding common stock and has significant influence over corporate matters.

06—Continue

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