BOLINGBROOK, Ill.--(BUSINESS WIRE)--May 25, 2023--
Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“first quarter”) ended April 29, 2023.
|
|
|
|
|
|
|
|
| 13 Weeks Ended | ||||
|
| April 29, |
| April 30, | ||
(Dollars in millions, except per share data) | 2023 |
| 2022 | |||
Net sales |
| $ | 2,634.3 |
| $ | 2,345.9 |
Comparable sales |
|
| 9.3% |
|
| 18.0% |
Gross profit (as a percentage of net sales) |
|
| 40.0% |
|
| 40.1% |
Selling, general and administrative expenses |
| $ | 612.1 |
| $ | 501.0 |
Operating income (as a percentage of net sales) |
|
| 16.8% |
|
| 18.7% |
Diluted earnings per share |
| $ | 6.88 |
| $ | 6.30 |
New store openings, net |
|
| 4 |
|
| 10 |
“The year is off to a positive start as the Ulta Beauty team delivered revenue, operating margin, and diluted EPS consistent with our internal expectations. Store traffic remained healthy, member growth showed continued strength, we delivered growth across key categories, and we strengthened engagement with the Ulta Beauty brand,” said Dave Kimbell, chief executive officer. “While we expect the operating environment to continue evolving, we remain confident in the resilience of the beauty category and in our ability to drive share and profitable growth with our proven business model, a diverse, best-in-class assortment, an industry-leading loyalty program, and our world-class team.”
For the First Quarter of Fiscal 2023
Balance Sheet
Cash and cash equivalents at the end of the first quarter of fiscal 2023 totaled $636.4 million.
Merchandise inventories, net at the end of first quarter of fiscal 2023 increased to $1.75 billion compared to $1.57 billion at the end of the first quarter of fiscal 2022. The increase is due to inventory to support higher demand, product cost increases, 41 net new stores, new brand launches, and brand expansions.
Share Repurchase Program
During the first quarter of fiscal 2023, the Company repurchased 541,108 shares of its common stock at a cost of $285.8 million, including excise tax. As of April 29, 2023, $816.5 million remained available under the $2.0 billion share repurchase program announced in March 2022.
Store Update
Real estate activity in the first quarter of fiscal 2023 included five new stores located in Boulder, CO; Denton, TX; Seattle, WA; Surprise, AZ; and Warrensville Heights, OH. In addition, the Company closed one store, relocated one store, and remodeled two stores.
At the end of the first quarter of fiscal 2023 the Company operated 1,359 stores totaling 14.2 million square feet.
Fiscal 2023 Outlook
The Company has updated its outlook for fiscal 2023.
|
|
|
|
|
|
| Prior FY23 Outlook |
| Updated FY23 Outlook | ||
Net sales |
|
| $10.95 billion to $11.05 billion |
| $11.0 billion to $11.1 billion |
Comparable sales |
|
| 4% to 5% |
| no change |
New stores, net |
|
| 25-30 |
| no change |
Remodel and relocation projects |
|
| 20-30 |
| no change |
Operating margin |
|
| 14.7% to 15.0% |
| 14.5% to 14.8% |
Diluted earnings per share |
|
| $24.70 to $25.40 |
| no change |
Share repurchases |
|
| approximately $900 million |
| no change |
Interest income |
|
|
|
| approximately $17 million |
Effective tax rate |
|
| approximately 24.6% |
| approximately 23.9% |
Capital expenditures |
|
| $400 million to $475 million |
| no change |
Depreciation and amortization expense |
|
| $245 million to $250 million |
| no change |
Conference Call Information
A conference call to discuss first quarter of fiscal 2023 results is scheduled for today, May 25, 2023, at 4:30 p.m. Eastern Time / 3:30 p.m. CT. Investors and analysts interested in participating in the call are invited to dial (877) 704‑4453. The conference call will also be webcast live at https://www.ulta.com/investor. A replay of the webcast will remain available for 90 days. A replay of the conference call will be available until 11:59 p.m. ET on June 8, 2023 and can be accessed by dialing (844) 512‑2921 and entering conference ID number 13737585.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the Company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty, All in One Place ®. Today, Ulta Beauty operates 1,359 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. For more information, visit www.ulta.com.
Forward‑Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect the company’s current views with respect to, among other things, future events and financial performance. These statements can be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “plans,” “estimates,” “targets,” “strategies” or other comparable words. Any forward-looking statements contained in this press release are based upon the company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the company or any other person that the future plans, estimates, targets, strategies or expectations contemplated by the company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation:
The company’s filings with the SEC are available at www.sec.gov. Except to the extent required by the federal securities laws, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Exhibit 1 | |||||||||||||
Ulta Beauty, Inc. | |||||||||||||
Consolidated Statements of Income | |||||||||||||
(In thousands, except per share data) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||
|
| 13 Weeks Ended | |||||||||||
|
| April 29, |
| April 30, | |||||||||
|
| 2023 |
| 2022 | |||||||||
|
| (Unaudited) |
| (Unaudited) | |||||||||
Net sales |
| $ | 2,634,263 |
|
| 100.0 | % |
| $ | 2,345,901 |
| 100.0 | % |
Cost of sales |
|
| 1,579,406 |
|
| 60.0 | % |
|
| 1,404,875 |
| 59.9 | % |
Gross profit |
|
| 1,054,857 |
|
| 40.0 | % |
|
| 941,026 |
| 40.1 | % |
|
|
|
|
|
|
|
|
|
|
| |||
Selling, general and administrative expenses |
|
| 612,129 |
|
| 23.2 | % |
|
| 500,970 |
| 21.4 | % |
Pre-opening expenses |
|
| 658 |
|
| 0.0 | % |
|
| 2,348 |
| 0.1 | % |
Operating income |
|
| 442,070 |
|
| 16.8 | % |
|
| 437,708 |
| 18.7 | % |
Interest (income) expense, net |
|
| (7,348 | ) |
| (0.3 | %) |
|
| 401 |
| 0.0 | % |
Income before income taxes |
|
| 449,418 |
|
| 17.1 | % |
|
| 437,307 |
| 18.6 | % |
Income tax expense |
|
| 102,367 |
|
| 3.9 | % |
|
| 105,912 |
| 4.5 | % |
Net income |
| $ | 347,051 |
|
| 13.2 | % |
| $ | 331,395 |
| 14.1 | % |
|
|
|
|
|
|
|
|
|
|
| |||
Net income per common share: |
|
|
|
|
|
|
|
|
|
| |||
Basic |
| $ | 6.92 |
|
|
|
| $ | 6.34 |
|
| ||
Diluted |
| $ | 6.88 |
|
|
|
| $ | 6.30 |
|
| ||
|
|
|
|
|
|
|
|
|
|
| |||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
| |||
Basic |
|
| 50,153 |
|
|
|
|
| 52,250 |
|
| ||
Diluted |
|
| 50,469 |
|
|
|
|
| 52,582 |
|
|
Exhibit 2 | |||||||||
Ulta Beauty, Inc. | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| April 29, |
| January 28, |
| April 30, | |||
|
| 2023 |
| 2023 |
| 2022 | |||
|
| (Unaudited) |
|
|
|
| (Unaudited) | ||
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 636,449 |
| $ | 737,877 |
| $ | 654,486 |
Receivables, net |
|
| 190,282 |
|
| 199,422 |
|
| 192,754 |
Merchandise inventories, net |
|
| 1,751,235 |
|
| 1,603,451 |
|
| 1,570,552 |
Prepaid expenses and other current assets |
|
| 108,014 |
|
| 130,246 |
|
| 114,075 |
Prepaid income taxes |
|
| — |
|
| 38,308 |
|
| — |
Total current assets |
|
| 2,685,980 |
|
| 2,709,304 |
|
| 2,531,867 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
| 1,019,978 |
|
| 1,009,273 |
|
| 909,543 |
Operating lease assets |
|
| 1,559,560 |
|
| 1,561,263 |
|
| 1,488,040 |
Goodwill |
|
| 10,870 |
|
| 10,870 |
|
| 10,870 |
Other intangible assets, net |
|
| 1,015 |
|
| 1,312 |
|
| 1,307 |
Deferred compensation plan assets |
|
| 37,002 |
|
| 35,382 |
|
| 35,978 |
Other long-term assets |
|
| 61,314 |
|
| 43,007 |
|
| 34,431 |
Total assets |
| $ | 5,375,719 |
| $ | 5,370,411 |
| $ | 5,012,036 |
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 621,272 |
| $ | 559,527 |
| $ | 585,500 |
Accrued liabilities |
|
| 308,583 |
|
| 444,278 |
|
| 305,000 |
Deferred revenue |
|
| 357,217 |
|
| 394,677 |
|
| 324,694 |
Current operating lease liabilities |
|
| 288,133 |
|
| 283,293 |
|
| 276,440 |
Accrued income taxes |
|
| 58,695 |
|
| — |
|
| 108,113 |
Total current liabilities |
|
| 1,633,900 |
|
| 1,681,775 |
|
| 1,599,747 |
|
|
|
|
|
|
|
|
|
|
Non-current operating lease liabilities |
|
| 1,610,256 |
|
| 1,619,883 |
|
| 1,568,356 |
Deferred income taxes |
|
| 57,490 |
|
| 55,346 |
|
| 40,702 |
Other long-term liabilities |
|
| 56,005 |
|
| 53,596 |
|
| 57,611 |
Total liabilities |
|
| 3,357,651 |
|
| 3,410,600 |
|
| 3,266,416 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
| 2,018,068 |
|
| 1,959,811 |
|
| 1,745,620 |
Total liabilities and stockholders’ equity |
| $ | 5,375,719 |
| $ | 5,370,411 |
| $ | 5,012,036 |
Exhibit 3 | ||||||||
Ulta Beauty, Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
|
|
|
|
|
|
| ||
|
| 13 Weeks Ended | ||||||
|
| April 29, |
| April 30, | ||||
|
| 2023 |
| 2022 | ||||
|
| (Unaudited) |
| (Unaudited) | ||||
Operating activities |
|
|
|
|
|
| ||
Net income |
| $ | 347,051 |
|
| $ | 331,395 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
| ||
Depreciation and amortization |
|
| 57,949 |
|
|
| 62,839 |
|
Non-cash lease expense |
|
| 75,478 |
|
|
| 72,192 |
|
Deferred income taxes |
|
| 2,144 |
|
|
| 1,009 |
|
Stock-based compensation expense |
|
| 9,721 |
|
|
| 10,356 |
|
Loss on disposal of property and equipment |
|
| 1,451 |
|
|
| 1,002 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
| ||
Receivables |
|
| 9,140 |
|
|
| 40,928 |
|
Merchandise inventories |
|
| (147,784 | ) |
|
| (71,334 | ) |
Prepaid expenses and other current assets |
|
| 22,232 |
|
|
| (3,261 | ) |
Income taxes |
|
| 97,003 |
|
|
| 101,236 |
|
Accounts payable |
|
| 62,257 |
|
|
| 42,586 |
|
Accrued liabilities |
|
| (98,515 | ) |
|
| (57,214 | ) |
Deferred revenue |
|
| (37,460 | ) |
|
| (28,885 | ) |
Operating lease liabilities |
|
| (78,562 | ) |
|
| (79,936 | ) |
Other assets and liabilities |
|
| (17,204 | ) |
|
| 3,390 |
|
Net cash provided by operating activities |
|
| 304,901 |
|
|
| 426,303 |
|
|
|
|
|
|
|
| ||
Investing activities |
|
|
|
|
|
| ||
Capital expenditures |
|
| (109,766 | ) |
|
| (71,076 | ) |
Other investments |
|
| (314 | ) |
|
| (797 | ) |
Net cash used in investing activities |
|
| (110,080 | ) |
|
| (71,873 | ) |
|
|
|
|
|
|
| ||
Financing activities |
|
|
|
|
|
| ||
Repurchase of common shares |
|
| (283,517 | ) |
|
| (132,834 | ) |
Stock options exercised |
|
| 8,927 |
|
|
| 6,502 |
|
Purchase of treasury shares |
|
| (21,659 | ) |
|
| (5,172 | ) |
Net cash used in financing activities |
|
| (296,249 | ) |
|
| (131,504 | ) |
|
|
|
|
|
|
| ||
Net (decrease) increase in cash and cash equivalents |
|
| (101,428 | ) |
|
| 222,926 |
|
Cash and cash equivalents at beginning of period |
|
| 737,877 |
|
|
| 431,560 |
|
Cash and cash equivalents at end of period |
| $ | 636,449 |
|
| $ | 654,486 |
|
Exhibit 4 | ||||||||
Ulta Beauty, Inc. | ||||||||
Store Update | ||||||||
|
|
|
|
|
|
|
|
|
|
| Total stores open |
| Number of stores |
| Number of stores |
| Total stores |
|
| at beginning of the |
| opened during the |
| closed during the |
| open at |
Fiscal 2023 |
| quarter |
| quarter |
| quarter |
| end of the quarter |
1 st Quarter |
| 1,355 |
| 5 |
| 1 |
| 1,359 |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross square feet for |
|
|
|
|
|
| Total gross square |
| stores opened or |
| Gross square feet for |
| Total gross square |
|
| feet at beginning of |
| expanded during the |
| stores closed |
| feet at end of the |
Fiscal 2023 |
| the quarter |
| quarter |
| during the quarter |
| quarter |
1 st Quarter |
| 14,200,403 |
| 54,495 |
| 9,984 |
| 14,244,914 |
Exhibit 5 | ||||
Ulta Beauty, Inc. | ||||
Sales by Category | ||||
The following table sets forth the approximate percentage of net sales by primary category: | ||||
|
| 13 Weeks Ended | ||
|
| April 29, |
| April 30, |
| 2023 |
| 2022 | |
Cosmetics |
| 44% |
| 44% |
Skincare |
| 19% |
| 18% |
Haircare products and styling tools |
| 18% |
| 20% |
Fragrance and bath |
| 12% |
| 12% |
Services |
| 4% |
| 3% |
Accessories and other |
| 3% |
| 3% |
|
| 100% |
| 100% |
View source version on businesswire.com:https://www.businesswire.com/news/home/20230525005601/en/
CONTACT: Investor Contacts:
Kiley Rawlins, CFA
Vice President, Investor Relations
krawlins@ulta.comMedia Contact:
Eileen Ziesemer
Vice President, Public Relations
eziesemer@ulta.com
(708) 305-4479
KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: COSMETICS RETAIL SPECIALTY
SOURCE: Ulta Beauty, Inc.
Copyright Business Wire 2023.
PUB: 05/25/2023 04:05 PM/DISC: 05/25/2023 04:04 PM
http://www.businesswire.com/news/home/20230525005601/en