Financial News

Net Sales Increase 0.8% for Ulta Beauty in FY 2024

In Q4 2024, net sales decreased 1.9% to $3.5 billion compared to $3.6 billion, primarily due to the benefit of an extra week of sales in fiscal 2023.

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By: Lianna Albrizio

Associate Editor

Photo: Shutterstock

Ulta Beauty saw a slight increase in net sales for FY 2024 compared to FY 2023 with revenue climbing 0.8% to $11.3 billion from $11.2 billion, primarily due to new store contribution, officials said.

Comparable sales increased 0.7% compared to an increase of 5.7%, driven by a 1.1% increase in average ticket and a 0.4% decrease in transactions.

Gross profit was $4.39 billion compared to $4.38 billion. As a percentage of net sales, gross profit decreased to 38.8% compared to 39.1%, primarily due to lower merchandise margin, deleverage of store fixed costs, and higher supply chain costs, partially offset by lower inventory shrink and favorable channel mix.

In Q4 2024, net sales decreased 1.9% to $3.5 billion compared to $3.6 billion, primarily due to the benefit of an extra week of sales in fiscal 2023, partially offset by new store contribution and increased comparable sales. Net sales in the 53rd week of fiscal 2023 were approximately $181.9 million.

Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 1.5% compared to an increase of 2.5%, driven by a 3.0% increase in average ticket and a 1.4% decrease in transactions.

“The Ulta Beauty team delivered stronger-than-expected revenue, profitability and diluted EPS in the fourth quarter,” said Kecia Steelman, president and chief executive officer. I am incredibly proud of our team’s collective impact on the business and the care they showed our guests throughout the holiday season, positioning us to finish fiscal 2024 ahead of our expectations.”

Steelman said she’s “incredibly optimistic” about the retailer’s future. She said its strong business model, passionate associates and ambitious long-term plan constitute the right elements to drive success.

Fiscal 2025 Outlook

Ulta Beauty says 2025 will be a “pivotal year” making “purposeful investments” to fuel future growth and speedily optimize its business. Officials anticipate net sales to increase from $11.5 billion to $11.6 billion in Fiscal 2025.

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