BOLINGBROOK, Ill.–(BUSINESS WIRE)–Ulta Beauty, Inc. (NASDAQ: ULTA) at present introduced monetary outcomes for the primary quarter ended May 1, 2021.
May 1,
May 2,
May 4,
(Dollars in thousands and thousands)
2021
2020
2019
Net gross sales
$
1,938.5
$
1,173.2
$
1,743.0
Comparable gross sales
65.9%
(35.3)%
7.0%
Gross revenue (as a share of internet gross sales)
38.9%
25.9%
37.0%
Selling, common and administrative bills
$
443.9
$
380.9
$
403.1
Operating revenue (as a share of internet gross sales)
15.8%
(8.7)%
13.6%
Diluted earnings per share
$
4.10
$
(1.39)
$
3.26
New retailer openings, internet
26
10
22
“The Ulta Beauty group delivered an excellent begin to the yr, with gross sales and earnings exceeding fiscal 2020 and financial 2019 first quarter ranges,” stated Mary Dillon, chief government officer. “I wish to thank all our associates for his or her continued efforts to ship nice experiences and assist our enterprise in an setting that continues to be very dynamic.”
“We have emerged from 2020 with robust momentum in our gross sales developments, market share good points, and client sentiment,” stated Dave Kimbell, president. “As growing client confidence, the relief of restrictions, and a need for newness drive elevated engagement with the wonder class, our differentiated mannequin, mixed with our ongoing efforts to create significant visitor connections, place us effectively to steer by means of the class restoration.”
For the First Quarter of Fiscal 2021
Net gross sales elevated 65.2% to $1.9 billion in comparison with $1.2 billion within the first quarter of fiscal 2020. The internet gross sales enhance in the course of the first quarter of fiscal 2021 was primarily because of the favorable influence within the U.S. from enhancing client confidence, authorities stimulus funds and the easing of COVID-19 restrictions.
Comparable gross sales (gross sales for shops open at the very least 14 months, together with shops quickly closed on account of COVID-19, and e-commerce gross sales) elevated 65.9% in comparison with a lower of 35.3% within the first quarter of fiscal 2020, pushed by a 52.5% enhance in transactions and an 8.8% enhance in common ticket. Compared to the primary quarter of fiscal 2019, comparable gross sales elevated 7.0%.
Gross revenue elevated to $753.8 million in comparison with $303.6 million within the first quarter of fiscal 2020. As a share of internet gross sales, gross revenue elevated to 38.9% in comparison with 25.9% within the first quarter of fiscal 2020, primarily on account of leverage in fastened prices on account of increased gross sales; enchancment in merchandise margins; decrease salon bills; and favorable channel combine shifts.
Selling, common and administrative (“SG&A”) bills elevated to $443.9 million in comparison with $380.9 million within the first quarter of fiscal 2020, primarily on account of increased retailer payroll and advantages and better promoting. As a share of internet gross sales, SG&A bills decreased to 22.9% in comparison with 32.5% within the first quarter of fiscal 2020, pushed by a rise in internet gross sales.
There had been no impairment prices acknowledged within the first quarter of 2021 in comparison with $19.5 million within the first quarter of fiscal 2020.
Pre-opening bills of $4.6 million had been in line with the primary quarter of fiscal 2020.
Operating revenue was $305.3 million, or 15.8% of internet gross sales, in comparison with working lack of $101.5 million, or (8.7)% of internet gross sales, within the first quarter of fiscal 2020. Adjusted working loss for the primary quarter of fiscal 2020 was $81.9 million, or (7.0)% of internet gross sales.
Tax price elevated to 24.5% in comparison with 23.6% within the first quarter of fiscal 2020. The increased efficient tax price is primarily on account of a lower in the advantage of state tax credit.
Net revenue was $230.3 million in comparison with internet lack of $78.5 million within the first quarter of fiscal 2020. Adjusted internet loss for the primary quarter of fiscal 2020 was $63.6 million.
Diluted earnings per share was $4.10, together with a $0.03 profit on account of revenue tax accounting for share-based compensation, in comparison with diluted loss per share of $1.39 within the first quarter of fiscal 2020. Adjusted diluted loss per share for the primary quarter of fiscal 2020 was $1.13.
Balance Sheet
Cash and money equivalents on the finish of the primary quarter of fiscal 2021 totaled $947.5 million.
Merchandise inventories, internet on the finish of first quarter of fiscal 2021 elevated $13.0 million to $1.4 billion in comparison with $1.3 billion on the finish of the primary quarter of fiscal 2020. The enhance in stock was primarily pushed by 26 internet new shops and the opening of the Jacksonville, FL quick success middle, partially offset by decrease stock on account of increased than anticipated gross sales.
Share Repurchase Program
During the primary quarter of fiscal 2021, the Company repurchased 1,243,209 shares of its frequent inventory at a value of $392.3 million. As of May 1, 2021, $1.1 billion remained out there below the $1.6 billion share repurchase program introduced in March 2020.
Store Update
Real property exercise within the first quarter of fiscal 2021 included 28 new shops situated in Acworth, GA; Albertville, AL; Ames, IA; Bakersfield, CA; Beaumont, CA; Bradenton, FL; Canoga Park, CA; Cincinnati, OH; Easley, SC; Hadley, MA; Houston, TX; Ledgewood, NJ; Miami, FL; Mount Pleasant, MI; New York, NY; Novato, CA; Orange, CA; Panama City, FL; Salem, NH; Shallotte, NC; St. Johns, FL; Sumter, SC; Tampa, FL; Washington, PA; Watertown, MA; West Chester, OH; West Hartford, CT; and Wilmington, NC. In addition, the Company relocated one retailer and closed two shops.
The first quarter of fiscal 2021 ended with 1,290 shops totaling 13.6 million sq. ft, representing a 2.3% enhance in sq. footage in comparison with the primary quarter of fiscal 2020.
Fiscal 2021 Outlook
The Company has up to date its outlook for fiscal 2021.
Prior FY21 Outlook
Updated FY21 Outlook
Net gross sales
$7.2 billion to $7.3 billion
$7.7 billion to $7.8 billion
Comparable gross sales
15% to 17%
23% to 25%
New shops, internet
40
no change
Remodel and relocation initiatives
21
19
Operating margin
roughly 9%
roughly 11%
Diluted earnings per share
$8.85 to $9.30
$11.50 to $11.95
Share repurchases
roughly $850 million
no change
Effective tax price
24.8%
no change
Capital expenditures
$200 million to $250 million
$225 million to $250 million
Depreciation and amortization expense
$270 million to $280 million
no change
The Company’s outlook for fiscal 2021 assumes no materials will increase within the federal minimal wage and doesn’t embody assumptions for any influence associated to a resurgence of COVID-19.
Non-GAAP Financial Information
In this press launch, the Company offers info relating to adjusted working loss, adjusted internet loss, and adjusted diluted loss per share, which aren’t acknowledged phrases below U.S. typically accepted accounting rules (GAAP) and don’t purport to be options to working loss, internet loss, and diluted loss per share as measures of working efficiency. A reconciliation of adjusted working loss, adjusted internet loss, and adjusted diluted loss per share is offered on this launch. The Company believes the presentation of those non-GAAP monetary measures offers further info on comparisons between durations by excluding sure gadgets that have an effect on general comparability and offers buyers with enhanced visibility into its outcomes with respect to the influence of sure prices. Non-GAAP monetary measures ought to be thought of along with, and never as a substitute for, the Company’s reported outcomes ready in accordance with GAAP.
Conference Call Information
A convention name to debate first quarter of fiscal 2021 outcomes is scheduled for at present, May 27, 2021, at 4:30 p.m. Eastern Time / 3:30 p.m. Central Time. Investors and analysts keen on taking part within the name are invited to dial (877) 705‑6003. The convention name may even be webcast dwell at http://ir.ultabeauty.com. A replay of the webcast will stay out there for 90 days. A replay of the convention name will likely be out there till 11:59 p.m. ET on June 10, 2021 and may be accessed by dialing (844) 512‑2921 and getting into convention ID quantity 13718914.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the chances are lovely. Ulta Beauty is the most important U.S. magnificence retailer and the premier magnificence vacation spot for cosmetics, perfume, skincare merchandise, hair care merchandise and salon companies. In 1990, the Company reinvented the wonder retail expertise by providing a brand new means to buy magnificence – bringing collectively all issues magnificence, multi function place. Today, Ulta Beauty operates 1,290 retail shops throughout 50 states and likewise distributes its merchandise by means of its web site, which features a assortment of ideas, tutorials, and social content material. For extra info, go to www.ulta.com.
Ulta Beauty was just lately added to the Bloomberg Gender Equality Index, which tracks the monetary efficiency of public firms dedicated to supporting gender equality by means of coverage improvement, illustration and transparency. More details about Ulta Beauty’s company duty efforts may be discovered at http://ir.ultabeauty.com/Corporate-Responsibility/.
Forward‑Looking Statements
This press launch comprises forward-looking statements inside the that means of Section 21E of the Securities Exchange Act of 1934, as amended, and the protected harbor provisions of the Private Securities Litigation Reform Act of 1995, which mirror the corporate’s present views with respect to, amongst different issues, future occasions and monetary efficiency. These statements may be recognized by way of forward-looking phrases resembling “outlook,” “believes,” “expects,” “plans,” “estimates,” “targets,” “methods” or different comparable phrases. Any forward-looking statements contained on this press launch are based mostly upon the corporate’s historic efficiency and on present plans, estimates and expectations. The inclusion of this forward-looking info shouldn’t be thought to be a illustration by the corporate or some other person who the long run plans, estimates, targets, methods or expectations contemplated by the corporate will likely be achieved. Such forward-looking statements are topic to varied dangers and uncertainties, which embody, with out limitation:
The adverse impacts the COVID-19 pandemic has had, and can proceed to have, on the corporate’s enterprise, monetary situation, profitability, money flows and provide chain, in addition to client spending (together with future unsure impacts);
epidemics, pandemics like COVID-19 or pure disasters which have and will proceed to negatively influence the corporate’s gross sales;
adjustments within the general stage of client spending and volatility within the economic system, together with on account of the COVID-19 pandemic and/or authorities support packages;
a decline in working outcomes that has and should proceed to result in asset impairment and retailer closures costs;
the corporate’s potential to maintain its progress plans and efficiently implement its long-range strategic and monetary plan;
the corporate’s potential to gauge magnificence developments and react to altering client preferences in a well timed method;
the chance that the corporate could also be unable to compete successfully in its extremely aggressive markets;
the corporate’s potential to execute its Efficiencies for Growth price optimization program;
the chance that cybersecurity breaches and different disruptions might compromise the corporate’s info or outcome within the unauthorized disclosure of confidential info;
the opportunity of materials disruptions to the corporate’s info methods;
the chance that the capability of the corporate’s distribution and order success infrastructure and the efficiency of its distribution facilities and quick success facilities will not be satisfactory to assist its latest progress and anticipated future progress plans;
adjustments within the wholesale price of the corporate’s merchandise;
the chance that new retailer openings and present places could also be impacted by developer or co-tenant points;
the corporate’s potential to draw and retain key government personnel;
the corporate’s potential to efficiently execute its frequent inventory repurchase program or implement future frequent inventory repurchase packages; and
different threat elements detailed within the firm’s public filings with the Securities and Exchange Commission (the SEC), together with threat elements contained in its Annual Report on Form 10‑Ok for the fiscal yr ended January 30, 2021, as such could also be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.
The firm’s filings with the SEC can be found at www.sec.gov. Except to the extent required by the federal securities legal guidelines, the Company doesn’t undertake to publicly replace or revise its forward-looking statements, whether or not on account of new info, future occasions or in any other case.
Exhibit 1
Ulta Beauty, Inc.
Consolidated Statements of Operations
(In 1000’s, besides per share information)
13 Weeks Ended
May 1,
May 2,
2021
2020
(Unaudited)
(Unaudited)
Net gross sales
$
1,938,519
100.0
%
$
1,173,210
100.0
%
Cost of gross sales
1,184,731
61.1
%
869,605
74.1
%
Gross revenue
753,788
38.9
%
303,605
25.9
%
Selling, common and administrative bills
443,875
22.9
%
380,912
32.5
%
Impairment prices
—
0.0
%
19,542
1.7
%
Pre-opening bills
4,589
0.2
%
4,635
0.4
%
Operating revenue (loss)
305,324
15.8
%
(101,484
)
(8.7
)%
Interest expense, internet
358
0.0
%
1,272
0.1
%
Income (loss) earlier than revenue taxes
304,966
15.8
%
(102,756
)
(8.8
)%
Income tax expense (profit)
74,677
3.9
%
(24,247
)
(2.1
)%
Net revenue (loss)
$
230,289
11.9
%
$
(78,509
)
(6.7
)%
Net revenue (loss) per frequent share:
Basic
$
4.13
$
(1.39
)
Diluted
$
4.10
$
(1.39
)
Weighted common frequent shares excellent:
Basic
55,795
56,419
Diluted
56,172
56,419
Exhibit 2
Ulta Beauty, Inc.
Condensed Consolidated Balance Sheets
(In 1000’s)
May 1,
January 30,
May 2,
2021
2021
2020
(Unaudited)
(Unaudited)
Assets
Current belongings:
Cash and money equivalents
$
947,456
$
1,046,051
$
1,043,540
Short-term investments
—
—
110,000
Receivables, internet
154,342
193,109
88,691
Merchandise inventories, internet
1,353,565
1,168,215
1,340,566
Prepaid bills and different present belongings
108,393
107,402
97,041
Prepaid revenue taxes
—
—
48,982
Total present belongings
2,563,756
2,514,777
2,728,820
Property and tools, internet
960,440
995,795
1,148,341
Operating lease belongings
1,487,616
1,504,614
1,583,490
Goodwill
10,870
10,870
10,870
Other intangible belongings, internet
2,233
2,465
3,159
Deferred compensation plan belongings
34,279
33,223
25,388
Other long-term belongings
28,350
28,225
30,483
Total belongings
$
5,087,544
$
5,089,969
$
5,530,551
Liabilities and stockholders’ fairness
Current liabilities:
Accounts payable
$
552,837
$
477,052
$
466,043
Accrued liabilities
322,676
296,334
173,310
Deferred income
270,090
274,383
216,330
Current working lease liabilities
263,200
253,415
240,496
Accrued revenue taxes
113,960
42,529
—
Total present liabilities
1,522,763
1,343,713
1,096,179
Non-current working lease liabilities
1,613,309
1,643,386
1,748,245
Long-term debt
—
—
800,000
Deferred revenue taxes
66,483
65,359
95,276
Other long-term liabilities
40,272
37,962
36,892
Total liabilities
3,242,827
3,090,420
3,776,592
Commitments and contingencies
Total stockholders’ fairness
1,844,717
1,999,549
1,753,959
Total liabilities and stockholders’ fairness
$
5,087,544
$
5,089,969
$
5,530,551
Exhibit 3
Ulta Beauty, Inc.
Consolidated Statements of Cash Flows
(In 1000’s)
13 Weeks Ended
May 1,
May 2,
2021
2020
(Unaudited)
(Unaudited)
Operating actions
Net revenue (loss)
$
230,289
$
(78,509
)
Adjustments to reconcile internet revenue (loss) to internet money offered by working actions:
Depreciation and amortization
70,599
76,626
Non-cash lease expense
68,881
70,863
Long-lived asset impairment cost
—
19,542
Deferred revenue taxes
1,124
5,909
Stock-based compensation expense
8,978
6,182
Loss on disposal of property and tools
1,089
1,521
Change in working belongings and liabilities:
Receivables
38,767
50,646
Merchandise inventories
(185,350
)
(46,865
)
Prepaid bills and different present belongings
(991
)
6,526
Income taxes
71,431
(32,595
)
Accounts payable
76,580
46,965
Accrued liabilities
23,209
(63,927
)
Deferred income
(4,293
)
(21,205
)
Operating lease liabilities
(72,175
)
(68,976
)
Other belongings and liabilities
1,929
2,979
Net money offered by (utilized in) working actions
330,067
(24,318
)
Investing actions
Capital expenditures
(34,563
)
(41,474
)
Purchases of fairness investments
—
(5,386
)
Net money utilized in investing actions
(34,563
)
(46,860
)
Financing actions
Proceeds from long-term debt
—
800,000
Repurchase of frequent shares
(392,309
)
(72,981
)
Stock choices exercised
5,032
250
Purchase of treasury shares
(6,766
)
(3,002
)
Debt issuance prices
—
(1,799
)
Net money offered by (utilized in) financing actions
(394,043
)
722,468
Effect of trade price adjustments on money and money equivalents
(56
)
(75
)
Net enhance (lower) in money and money equivalents
(98,595
)
651,215
Cash and money equivalents at starting of interval
1,046,051
392,325
Cash and money equivalents at finish of interval
$
947,456
$
1,043,540
Exhibit 4
Ulta Beauty, Inc.
Store Update
Total shops open
Number of shops
Number of shops
Total shops
at starting of the
opened in the course of the
closed in the course of the
open at
Fiscal 2021
quarter
quarter
quarter
finish of the quarter
1st Quarter
1,264
28
2
1,290
Gross sq. ft for
Total gross sq.
shops opened or
Gross sq. ft for
Total gross sq.
ft at starting of
expanded in the course of the
shops closed
ft at finish of the
Fiscal 2021
the quarter
quarter
in the course of the quarter
quarter
1st Quarter
13,291,838
327,476
22,906
13,596,408
Exhibit 5
Ulta Beauty, Inc.
Sales by Category
The following desk units forth the approximate share of internet gross sales by major class:
13 weeks ended
May 1,
May 2,
2021
2020
Cosmetics (1)
45%
50%
Skincare
19%
17%
Haircare merchandise and styling instruments
19%
18%
Fragrance and tub
11%
7%
Services
3%
4%
Accessories and different (1)
3%
4%
100%
100%
_______________________
(1)
Certain gross sales departments had been reclassified between classes within the prior yr to evolve to present yr presentation.
Exhibit 6
Ulta Beauty, Inc.
Reconciliation of GAAP foundation to Adjusted working loss, Adjusted internet loss and
Adjusted diluted loss per share
(In 1000’s, besides per share information)
(Unaudited)
13 weeks ended
May 2,
2020
Operating loss
$
(101,484
)
Add: Store asset impairment
19,542
Adjusted working loss
$
(81,942
)
Net loss
$
(78,509
)
Add: Store asset impairment
19,542
Less: Income tax advantage of retailer asset impairment1
(4,612
)
Adjusted internet loss
$
(63,579
)
Diluted loss per share
$
(1.39
)
Add: Store asset impairment
0.35
Less: Income tax advantage of retailer asset impairment1
(0.09
)
Adjusted diluted loss per share
$
(1.13
)
1 The revenue tax profit for non-GAAP changes was calculated utilizing the Company’s efficient tax price.
