Ulta Beauty, Inc. (NASDAQ: ULTA ) reported a 3.5% increase in net sales reaching $2.
7 billion in the first quarter of 2024, with comparable sales growing by 1.6%. Despite a challenging environment, the company showed resilience with an operating profit of 14.
7% of sales and a diluted earnings per share (EPS) of $6.47. Adjusting expectations for the year, Ulta Beauty aims to maintain its market leadership through enhanced strategies and expects the beauty category to grow in the mid-single-digit range.
Key Takeaways Ulta Beauty's net sales rose to $2.7 billion, a 3.5% increase, with comparable sales up by 1.
6%. Operating profit reached 14.7% of sales, and diluted EPS was reported at $6.
47. The company's full-year outlook includes net sales between $11.5 billion and $11.
6 billion, with a comp sales growth forecast of 2% to 3%. Gross margin declined to 39.2% due to lower merchandise margins and increased inventory shrink.
Selling, general, and administrative (SG&A) expenses rose by 8.8%, mainly due to higher corporate overhead and store-related costs. Ulta Beauty plans to repurchase $1 billion of its stock within the year.
The company's app contributed to 57% of e-commerce sales, marking a significant increase from the previous year. Ulta Beauty is advancing personalization efforts with new marketing technology set to activate later this year. Company Outlook Anticipates operating margin to be between 13.
7% and 14% of net sales. Diluted EPS for the full year is expected to be in.
