Ulta Beauty Inc. (ULTA): Analyzing Financial Health

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Ulta Beauty Inc. (NASDAQ: ULTA), a chain of cosmetics stores, released its maiden financial quarter results last week. The company’s success has been fueled by more social engagement; not only has traffic climbed, but so has the typical customer’s check.


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Ulta Beauty’s revenue increased by 21% year over year to $2.3 billion in the quarter ending April 30. The surge in traffic was fueled in part by pent-up demand as a result of the coronavirus limitations. The average check has grown by more than 7%.

Increased costs were a factor, but so was the usual aspect of stationery businesses – customers are more likely to make impulsive purchases. The increase in indicators inside the organization is explained by the economic recovery and the fact that individuals are attending more large events and want to look well. Overall, year-over-year like-for-like sales climbed by 18%.

Ulta Beauty’s profitability rose as well, with a gross margin of 40.1 percent, up from 38.9% the year before, and an operating margin of 18.7 percent, up from 15.8 percent. Overall, the retailer’s net income increased by 44 percent to $331.4 million, while profits per share increased by 54 percent to $6.3.

Ulta Beauty raised its full-year profits target to $19.2- $20.1 per share from $18.2- $18.7 per share following a successful quarter. The firm’s management expects that the recovering social activity will continue to benefit the company, resulting in robust sales of various types of cosmetics, both beauty, and color.

ULTA stock has traded in a 5-day range of $330.80 to $425.39, resulting in a total return of +23.91%. Meanwhile, during the previous month of trading, this stock has moved in a range of $330.80 to $425.39, a change of +5.54 percent. This stock’s price has moved by +12.43% in the last three months, moving in the range of $330.80 to $438.63.

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