UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended May 4, 2024

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____________ to _____________

Commission File Number: 001-33764

ULTA BEAUTY, INC.

(Exact name of Registrant as specified in its charter)

incorporation or organization)

Identification No.)

Delaware

(State or other jurisdiction of
incorporation or organization)

38-4022268

(I.R.S. Employer
Identification No.)

1000 Remington Blvd., Suite 120

Bolingbrook, Illinois

(Address of principal executive offices)

60440

(Zip code)

Registrant’s telephone number, including area code: (630) 410-4800

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ULTA	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐
Non- accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares of the registrant’s common stock, par value $0.01 per share, outstanding as of May 24, 2024 was 47,716,365 shares.

Table of Contents

ULTA BEAUTY, INC.

TABLE OF CONTENTS


Part I - Financial Information

Item 1. Financial Statements
Consolidated Balance Sheets		3
Consolidated Statements of Income		4
Consolidated Statements of Cash Flows		5
Consolidated Statements of Stockholders’ Equity		6
Notes to Consolidated Financial Statements		7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		14

Item 3. Quantitative and Qualitative Disclosures about Market Risk		22

Item 4. Controls and Procedures		22

Part II - Other Information		23

Item 1. Legal Proceedings		23

Item 1A. Risk Factors		23

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		23

Item 3. Defaults Upon Senior Securities		23

Item 4. Mine Safety Disclosures		23

Item 5. Other Information		24

Item 6. Exhibits		24

SIGNATURES		25

Table of Contents

Part I - Financial Information

Item 1.Financial Statements

Ulta Beauty, Inc.

Consolidated Balance Sheets


	May 4,		February 3,		April 29,
(In thousands, except per share data)	2024		2024		2023
Assets		(Unaudited)				(Unaudited)
Current assets:
Cash and cash equivalents	$	524,596	$	766,594	$	636,449
Receivables, net		203,463		207,939		190,282
Merchandise inventories, net		1,906,040		1,742,136		1,751,235
Prepaid expenses and other current assets		126,529		115,598		108,014
Prepaid income taxes		—		4,251		—
Total current assets		2,760,628		2,836,518		2,685,980

Property and equipment, net		1,195,658		1,182,335		1,019,978
Operating lease assets		1,561,767		1,574,530		1,559,560
Goodwill		10,870		10,870		10,870
Other intangible assets, net		434		510		1,015
Deferred compensation plan assets		45,718		43,516		37,002
Other long-term assets		56,864		58,732		61,314
Total assets	$	5,631,939	$	5,707,011	$	5,375,719

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	463,777	$	544,001	$	621,272
Accrued liabilities		332,692		382,468		308,583
Deferred revenue		398,729		436,591		357,217
Current operating lease liabilities		284,815		283,821		288,133
Accrued income taxes		92,711		11,310		58,695
Total current liabilities		1,572,724		1,658,191		1,633,900

Non-current operating lease liabilities		1,607,953		1,627,271		1,610,256
Deferred income taxes		89,556		85,921		57,490
Other long-term liabilities		60,963		56,300		56,005
Total liabilities		3,331,196		3,427,683		3,357,651

Commitments and contingencies (Note 6)

Stockholders' equity:
Common stock, $0.01 par value, 400,000 shares authorized; 48,688, 49,123, and 50,729 shares issued; 47,845, 48,324, and 49,932 shares outstanding; at May 4, 2024 (unaudited), February 3, 2024, and April 29, 2023 (unaudited), respectively		487		491		507
Treasury stock-common, at cost		(106,315)		(83,032)		(82,129)
Additional paid-in capital		1,091,822		1,075,104		1,040,378
Retained earnings		1,314,749		1,286,765		1,059,312
Total stockholders’ equity		2,300,743		2,279,328		2,018,068
Total liabilities and stockholders’ equity	$	5,631,939	$	5,707,011	$	5,375,719

See accompanying notes to consolidated financial statements.

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Income

(Unaudited)


	13 Weeks Ended
	May 4,		April 29,
(In thousands, except per share data)	2024		2023
Net sales	$	2,725,848	$	2,634,263
Cost of sales		1,656,068		1,579,406
Gross profit		1,069,780		1,054,857

Selling, general and administrative expenses		665,913		612,129
Pre-opening expenses		2,919		658
Operating income		400,948		442,070
Interest income, net		(6,900)		(7,348)
Income before income taxes		407,848		449,418
Income tax expense		94,735		102,367
Net income	$	313,113	$	347,051

Net income per common share:
Basic	$	6.51	$	6.92
Diluted	$	6.47	$	6.88

Weighted average common shares outstanding:
Basic		48,125		50,153
Diluted		48,381		50,469

See accompanying notes to consolidated financial statements.

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Cash Flows

(Unaudited)


	13 Weeks Ended
	May 4,		April 29,
(In thousands)	2024		2023
Operating activities
Net income	$	313,113	$	347,051
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		64,739		57,949
Non-cash lease expense		77,938		75,478
Deferred income taxes		3,635		2,144
Stock-based compensation expense		10,082		9,721
Loss on disposal of property and equipment		2,975		1,451
Change in operating assets and liabilities:
Receivables		4,476		9,140
Merchandise inventories		(163,904)		(147,784)
Prepaid expenses and other current assets		(10,931)		22,232
Income taxes		85,652		97,003
Accounts payable		(74,069)		62,257
Accrued liabilities		(43,846)		(98,515)
Deferred revenue		(37,862)		(37,460)
Operating lease liabilities		(83,500)		(78,562)
Other assets and liabilities		10,842		(17,204)
Net cash provided by operating activities		159,340

SEC Form 10-Q filed by Ulta Beauty Inc.