ULTA
$383.95
Ulta Beauty
($17.47)
(4.35%)
Earnings Details
2nd Quarter July 2021
Wednesday, August 25, 2021 4:05:00 PM
Tweet Share Watch
Summary

Ulta Beauty Beats

Ulta Beauty (ULTA) reported 2nd Quarter July 2021 earnings of $4.56 per share on revenue of $2.0 billion. The consensus earnings estimate was $2.49 per share on revenue of $1.7 billion. The Earnings Whisper number was $2.89 per share. Revenue grew 60.2% on a year-over-year basis.

The company said it expects fiscal year earnings of $14.50 to $14.70 per share on revenue of $8.10 billion to $8.30 billion. The company's previous guidance was earnings of $11.50 to $11.95 per share on revenue of $7.7 billion to $7.8 billion and the current consensus earnings estimate is $12.41 per share on revenue of $7.84 billion for the year ending January 31, 2022.

Ulta Salon Cosmetics & Fragrances, Inc. is a beauty retailer that provides one-stop shopping for mass and salon products and salon services in United States. Its brands includes Bare Minerals and Urban Decay prestige cosmetics.

Results
Reported Earnings
$4.56
Earnings Whisper
$2.89
Consensus Estimate
$2.49
Reported Revenue
$1.97 Bil
Revenue Estimate
$1.72 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Ulta Beauty Announces Record Second Quarter Results

Net Sales of $2.0 Billion Compared to $1.2 Billion in the Year-Ago Quarter

Comparable Sales Increased 56.3%

Net Income of $250.9 Million or $4.56 Per Diluted Share

BOLINGBROOK, Ill.--(BUSINESS WIRE)--Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“second quarter”) and twenty-six-week period (“first six months”) ended July 31, 2021 compared to the same periods ended August 1, 2020.

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

 

July 31,

 

August 1,

 

August 3,

(Dollars in millions)

 

2021

 

2020

 

2019

Net sales

 

$

1,967.2

 

$

1,228.0

 

$

1,666.6

Comparable sales

 

 

56.3%

 

 

(26.7)%

 

 

6.2%

Gross profit (as a percentage of net sales)

 

 

40.6%

 

 

26.8%

 

 

36.4%

Selling, general and administrative expenses

 

$

464.3

 

$

271.6

 

$

392.8

Operating income (as a percentage of net sales)

 

 

16.9%

 

 

1.1%

 

 

12.5%

Diluted earnings per share

 

$

4.56

 

$

0.14

 

$

2.76

New store openings, net

 

 

6

 

 

 

 

17

“The Ulta Beauty team delivered strong results for the second quarter. This performance reflects the recovery of the beauty category, investments and choices we’ve made over the last year to adapt to the market disruption and strengthen our leadership position, and the ongoing efforts of our associates to deliver great experiences for our guests,” said Dave Kimbell, chief executive officer. “Our value proposition is strong, and we are evolving and innovating to lead in the new beauty landscape, capture additional market share, and drive profitable growth.”

For the Second Quarter of Fiscal 2021

  • Net sales increased 60.2% to $2.0 billion compared to $1.2 billion in the second quarter of fiscal 2020 due to the favorable impact from stronger consumer confidence and fewer COVID-19 restrictions, compared to the second quarter of fiscal 2020.
  • Comparable sales (sales for stores open at least 14 months, including stores temporarily closed due to COVID-19, and e-commerce sales) increased 56.3% compared to a decrease of 26.7% in the second quarter of fiscal 2020, driven by a 52.5% increase in transactions and a 2.5% increase in average ticket. Compared to the second quarter of fiscal 2019, comparable sales increased 13.1%.
  • Gross profit increased to $798.0 million compared to $329.0 million in the second quarter of fiscal 2020. As a percentage of net sales, gross profit increased to 40.6% compared to 26.8% in the second quarter of fiscal 2020, primarily due to leverage of fixed costs, improvement in merchandise margins, favorable channel mix shifts, and leverage of salon expenses.
  • Selling, general and administrative (SG&A) expenses increased to $464.3 million compared to $271.6 million in the second quarter of fiscal 2020. As a percentage of net sales, SG&A expenses increased to 23.6% compared to 22.1% in the second quarter of fiscal 2020, due to deleverage related to higher store payroll and benefits primarily due to less employee retention credits received under the CARES Act, and higher marketing expense, partially offset by leverage of corporate overhead and store expenses due to higher sales.
  • There were no impairment, restructuring and other costs in the second quarter of 2021 compared to $40.8 million in the second quarter of 2020.
  • Pre-opening expenses decreased to $1.4 million compared to $3.9 million in the second quarter of fiscal 2020.
  • Operating income increased to $332.3 million, or 16.9% of net sales, compared to $12.8 million, or 1.1% of net sales, in the second quarter of fiscal 2020. Adjusted operating income for the second quarter of fiscal 2020 was $54.9 million, or 4.5% of net sales.
  • Tax rate increased to 24.4% compared to 20.6% in the second quarter of fiscal 2020. The higher effective tax rate is primarily due to a decrease in the benefit of state tax credits as a result of an increase in pretax income.
  • Net income was $250.9 million compared to $8.1 million in the second quarter of fiscal 2020. Adjusted net income for the second quarter of fiscal 2020 was $41.5 million.
  • Diluted earnings per share was $4.56, including a $0.04 benefit due to income tax accounting for share-based compensation, compared to $0.14 in the second quarter of fiscal 2020. Adjusted diluted earnings per share for the second quarter of fiscal 2020 was $0.73.

For the First Six Months of Fiscal 2021

  • Net sales increased 62.7% to $3.9 billion compared to $2.4 billion in the first six months of fiscal 2020, primarily due to the favorable impact from improving consumer confidence, government stimulus payments, and the easing of COVID-19 restrictions, as compared to the first six months of fiscal 2020.
  • Comparable sales increased 60.9% compared to a decrease of 31.1% in the first six months of fiscal 2020, driven by a 52.5% increase in transactions and a 5.5% increase in average ticket. Compared to the first six months of fiscal 2019, comparable sales increased 10.0%.
  • Gross profit increased to $1.6 billion compared to $632.6 million in the first six months of fiscal 2020. As a percentage of net sales, gross profit increased to 39.7% compared to 26.3% in the first six months of fiscal 2020, primarily due to leverage of fixed costs, improvement in merchandise margins, leverage of salon expenses, and favorable channel mix shifts.
  • SG&A expenses increased to $908.2 million compared to $652.5 million in the first six months of fiscal 2020. As a percentage of net sales, SG&A expenses decreased to 23.3% compared to 27.2% in the first six months of fiscal 2020, due to leverage of corporate overhead and store expenses due to higher sales, partially offset by deleverage related to higher store payroll and benefits primarily due to less employee retention credits received under the CARES Act, and higher marketing expense.
  • There were no impairment, restructuring and other costs recognized in the first six months of fiscal 2021, compared to $60.3 million in the first six months of fiscal 2020.
  • Pre-opening expenses decreased to $5.9 million compared to $8.5 million in the first six months of fiscal 2020.
  • Operating income increased to $637.6 million, or 16.3% of net sales, compared to an operating loss of $88.7 million, or (3.7)% of net sales, in the first six months of fiscal 2020. Adjusted operating loss for the first six months of fiscal 2020 was $27.0 million, or (1.1)% of net sales.
  • Tax rate increased to 24.4% compared to 23.9% in the first six months of fiscal 2020. The higher effective tax rate is primarily due to a decrease in the benefit of state tax credits as a result of an increase in pretax income.
  • Net income was $481.2 million compared to a net loss of $70.5 million in the first six months of fiscal 2020. Adjusted net loss for the first six months of fiscal 2020 was $23.5 million.
  • Diluted earnings per share was $8.66, including a $0.07 benefit due to income tax accounting for share-based compensation, compared to a diluted loss per share of $1.25 in the first six months of fiscal 2020. Adjusted diluted loss per share for the first six months of fiscal 2020 was $0.42.

Balance Sheet

Cash and cash equivalents at the end of the second quarter of fiscal 2021 were $770.1 million.

Merchandise inventories, net at the end of the second quarter of fiscal 2021 totaled $1.44 billion compared to $1.37 billion at the end of the second quarter of fiscal 2020. The $75.14 million increase in inventory was primarily due to the addition of 32 net new stores opened since August 1, 2020, the opening of the Jacksonville, FL fast fulfillment center, and increased purchases to support strong demand.

Share Repurchase Program

During the second quarter of fiscal 2021, the Company repurchased 746,367 shares of its common stock at a cost of $243.5 million. During the first six months of fiscal 2021, the Company repurchased 1,989,576 shares of its common stock at a cost of $635.8 million. As of July 31, 2021, $886.2 million remained available under the $1.6 billion share repurchase program announced in March 2020.

Store Update

Real estate activity in the second quarter of fiscal 2021 included 7 new stores located in Dyersburg, TN; Gig Harbor, WA; Little Rock, AR; Richmond, TX; Staten Island, NY; Sunnyvale, CA; and Troy, AL. In addition, the Company relocated one store, remodeled five stores, and closed one store. In the first six months of fiscal 2021, the Company opened 35 new stores, relocated two stores, remodeled five stores, and closed three stores.

The second quarter of fiscal 2021 ended with 1,296 stores and square footage of 13.6 million, representing a 2.7% increase in square footage compared to the second quarter of fiscal 2020.

Fiscal 2021 Outlook

Based on the results for the first six months of fiscal 2021 and revised expectations for consumer demand, the Company has increased its outlook for fiscal 2021.

The Company’s updated outlook for fiscal 2021 is as follows:

 

 

 

 

 

 

 

 

 

Prior FY21 Outlook

 

Updated FY21 Outlook

Net sales

 

 

$7.7 billion to $7.8 billion

 

$8.1 billion to $8.3 billion

Comparable sales

 

 

23% to 25%

 

30% to 32%

New stores, net

 

 

40

 

44

Remodel and relocation projects

 

 

19

 

18

Operating margin

 

 

approximately 11%

 

approximately 13%

Diluted earnings per share

 

 

$11.50 to $11.95

 

$14.50 to $14.70

Share repurchases

 

 

approximately $850 million

 

no change

Effective tax rate

 

 

24.8%

 

no change

Capital expenditures

 

 

$225 million to $250 million

 

no change

Depreciation and amortization expense

 

 

$270 million to $280 million

 

no change

The Company’s outlook for fiscal 2021 assumes no material increases in the federal minimum wage and does not include assumptions for any impact related to a resurgence of COVID-19.

Non-GAAP Financial Information

In this press release, the Company provides information regarding adjusted operating income (loss), adjusted net income (loss), and adjusted diluted earnings (loss) per share, which are not recognized terms under U.S. generally accepted accounting principles (GAAP) and do not purport to be alternatives to operating income (loss), net income (loss), and diluted earnings (loss) per share as measures of operating performance. A reconciliation of adjusted operating income (loss), adjusted net income (loss), and adjusted diluted earnings (loss) per share is provided in this release. The Company believes the presentation of these non-GAAP financial measures provides additional information on comparisons between periods by excluding certain items that affect overall comparability and provides investors with enhanced visibility into its results with respect to the impact of certain costs. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Conference Call Information

A conference call to discuss second quarter of fiscal 2021 results is scheduled for today, August 25, 2021, at 4:30 p.m. Eastern Time / 3:30 p.m. Central Time. Investors and analysts interested in participating in the call are invited to dial (877) 705-6003. The conference call will also be webcast live at http://ir.ultabeauty.com. 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 September 8, 2021 and can be accessed by dialing (844) 512-2921 and entering conference ID number 13721889.

About Ulta Beauty

At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest 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 1,296 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.

Ulta Beauty was recently added to the Bloomberg Gender Equality Index, which tracks the financial performance of public companies committed to supporting gender equality through policy development, representation and transparency. More information about Ulta Beauty’s corporate responsibility efforts can be found at www.ulta.com/investor/ESG.

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 negative impacts the COVID-19 pandemic has had, and will continue to have, on the company’s business, financial condition, profitability, cash flows and supply chain, as well as consumer spending (including future uncertain impacts);
  • epidemics, pandemics like COVID-19 or natural disasters that have and could continue to negatively impact the company’s sales;
  • changes in the overall level of consumer spending and volatility in the economy, including as a result of the COVID-19 pandemic and/or government aid programs;
  • a decline in operating results that has and may continue to lead to asset impairment and store closures charges;
  • the company’s ability to sustain its growth plans and successfully implement its long-range strategic and financial plan;
  • the company’s ability to gauge beauty trends and react to changing consumer preferences in a timely manner;
  • the possibility that the company may be unable to compete effectively in its highly competitive markets;
  • the company’s ability to execute its Efficiencies for Growth cost optimization program;
  • the possibility that cybersecurity breaches and other disruptions could compromise the company’s information or result in the unauthorized disclosure of confidential information;
  • the possibility of material disruptions to the company’s information systems;
  • the possibility that the capacity of the company’s distribution and order fulfillment infrastructure and the performance of its distribution centers and fast fulfillment centers may not be adequate to support its recent growth and expected future growth plans;
  • changes in the wholesale cost of the company’s products;
  • the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues;
  • the company’s ability to attract and retain key executive personnel;
  • the company’s ability to successfully execute its common stock repurchase program or implement future common stock repurchase programs; and
  • other risk factors detailed in the company’s public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10-K for the fiscal year ended January 30, 2021, as such may be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.

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 Operations

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

 

July 31,

 

August 1,

 

 

2021

 

2020

 

 

(Unaudited)

 

(Unaudited)

Net sales

 

$

1,967,207

 

100.0%

 

$

1,228,009

 

100.0%

Cost of sales

 

 

1,169,244

 

59.4%

 

 

899,002

 

73.2%

Gross profit

 

 

797,963

 

40.6%

 

 

329,007

 

26.8%

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

464,299

 

23.6%

 

 

271,587

 

22.1%

Impairment, restructuring and other costs

 

 

 

0.0%

 

 

40,758

 

3.3%

Pre-opening expenses

 

 

1,357

 

0.1%

 

 

3,907

 

0.3%

Operating income

 

 

332,307

 

16.9%

 

 

12,755

 

1.1%

Interest expense, net

 

 

425

 

0.0%

 

 

2,617

 

0.2%

Income before income taxes

 

 

331,882

 

16.9%

 

 

10,138

 

0.9%

Income tax expense

 

 

80,989

 

4.1%

 

 

2,086

 

0.2%

Net income

 

$

250,893

 

12.8%

 

$

8,052

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

4.59

 

 

 

$

0.14

 

 

Diluted

 

$

4.56

 

 

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

54,675

 

 

 

 

56,318

 

 

Diluted

 

 

55,014

 

 

 

 

56,497

 

 

Exhibit 2

Ulta Beauty, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

 

 

 

26 Weeks Ended

 

 

July 31,

 

August 1,

 

 

2021

 

2020

 

 

(Unaudited)

 

(Unaudited)

Net sales

 

$

3,905,726

 

100.0%

 

$

2,401,219

 

100.0%

Cost of sales

 

 

2,353,975

 

60.3%

 

 

1,768,607

 

73.7%

Gross profit

 

 

1,551,751

 

39.7%

 

 

632,612

 

26.3%

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

908,174

 

23.3%

 

 

652,499

 

27.2%

Impairment, restructuring and other costs

 

 

 

0.0%

 

 

60,300

 

2.5%

Pre-opening expenses

 

 

5,946

 

0.1%

 

 

8,542

 

0.3%

Operating income (loss)

 

 

637,631

 

16.3%

 

 

(88,729)

 

(3.7)%

Interest expense, net

 

 

783

 

0.0%

 

 

3,889

 

0.1%

Income (loss) before income taxes

 

 

636,848

 

16.3%

 

 

(92,618)

 

(3.8)%

Income tax expense (benefit)

 

 

155,666

 

4.0%

 

 

(22,161)

 

(0.9)%

Net income (loss)

 

$

481,182

 

12.3%

 

$

(70,457)

 

(2.9)%

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

8.71

 

 

 

$

(1.25)

 

 

Diluted

 

$

8.66

 

 

 

$

(1.25)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

55,235

 

 

 

 

56,369

 

 

Diluted

 

 

55,592

 

 

 

 

56,369

 

 

 

Exhibit 3

Ulta Beauty, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

July 31,

 

January 30,

 

August 1,

 

 

2021

 

2021

 

2020

 

 

(Unaudited)

 

 

 

 

(Unaudited)

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

770,144

 

$

1,046,051

 

$

1,157,318

Receivables, net

 

 

154,416

 

 

193,109

 

 

127,992

Merchandise inventories, net

 

 

1,443,685

 

 

1,168,215

 

 

1,368,543

Prepaid expenses and other current assets

 

 

108,145

 

 

107,402

 

 

102,713

Prepaid income taxes

 

 

18,544

 

 

 

 

42,622

Total current assets

 

 

2,494,934

 

 

2,514,777

 

 

2,799,188

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

909,507

 

 

995,795

 

 

1,077,825

Operating lease assets

 

 

1,470,166

 

 

1,504,614

 

 

1,548,239

Goodwill

 

 

10,870

 

 

10,870

 

 

10,870

Other intangible assets, net

 

 

2,001

 

 

2,465

 

 

2,927

Deferred compensation plan assets

 

 

36,396

 

 

33,223

 

 

28,789

Other long-term assets

 

 

30,711

 

 

28,225

 

 

29,283

Total assets

 

$

4,954,585

 

$

5,089,969

 

$

5,497,121

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

535,257

 

$

477,052

 

$

398,011

Accrued liabilities

 

 

313,372

 

 

296,334

 

 

201,754

Deferred revenue

 

 

265,462

 

 

274,383

 

 

216,545

Current operating lease liabilities

 

 

267,442

 

 

253,415

 

 

245,019

Accrued income taxes

 

 

 

 

42,529

 

 

Total current liabilities

 

 

1,381,533

 

 

1,343,713

 

 

1,061,329

 

 

 

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

 

1,585,539

 

 

1,643,386

 

 

1,718,549

Long-term debt

 

 

 

 

 

 

800,000

Deferred income taxes

 

 

64,535

 

 

65,359

 

 

94,272

Other long-term liabilities

 

 

43,165

 

 

37,962

 

 

52,178

Total liabilities

 

 

3,074,772

 

 

3,090,420

 

 

3,726,328

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

1,879,813

 

 

1,999,549

 

 

1,770,793

Total liabilities and stockholders’ equity

 

$

4,954,585

 

$

5,089,969

 

$

5,497,121

 

Exhibit 4

Ulta Beauty, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

26 Weeks Ended

 

 

July 31,

 

August 1,

 

 

2021

 

2020

 

 

(Unaudited)

 

 

(Unaudited)

Operating activities

 

 

 

 

 

 

Net income (loss)

 

$

481,182

 

$

(70,457)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

139,577

 

 

154,029

Non-cash lease expense

 

 

137,521

 

 

132,808

Long-lived asset impairment charge

 

 

 

 

59,997

Deferred income taxes

 

 

(824)

 

 

4,905

Stock-based compensation expense

 

 

19,097

 

 

14,595

Loss on disposal of property and equipment

 

 

1,703

 

 

2,273

Change in operating assets and liabilities:

 

 

 

 

 

 

Receivables

 

 

38,693

 

 

11,345

Merchandise inventories

 

 

(275,470)

 

 

(74,842)

Prepaid expenses and other current assets

 

 

(741)

 

 

854

Income taxes

 

 

(61,074)

 

 

(26,235)

Accounts payable

 

 

59,360

 

 

(18,486)

Accrued liabilities

 

 

17,858

 

 

(32,901)

Deferred revenue

 

 

(8,921)

 

 

(20,990)

Operating lease liabilities

 

 

(146,892)

 

 

(137,383)

Other assets and liabilities

 

 

344

 

 

16,477

Net cash provided by operating activities

 

 

401,413

 

 

15,989

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Short-term investments, net

 

 

 

 

110,000

Capital expenditures

 

 

(57,305)

 

 

(77,090)

Acquisitions, net of cash acquired

 

 

 

 

(1,220)

Purchases of equity investments

 

 

 

 

(5,386)

Net cash provided by (used in) investing activities

 

 

(57,305)

 

 

26,304

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

Proceeds from long-term debt

 

 

 

 

800,000

Repurchase of common shares

 

 

(635,793)

 

 

(72,981)

Stock options exercised

 

 

22,808

 

 

577

Purchase of treasury shares

 

 

(6,974)

 

 

(3,065)

Debt issuance costs

 

 

 

 

(1,861)

Net cash provided by (used in) financing activities

 

 

(619,959)

 

 

722,670

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(56)

 

 

30

Net increase (decrease) in cash and cash equivalents

 

 

(275,907)

 

 

764,993

Cash and cash equivalents at beginning of period

 

 

1,046,051

 

 

392,325

Cash and cash equivalents at end of period

 

$

770,144

 

$

1,157,318

 

Exhibit 5

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 2021

 

quarter

 

quarter

 

quarter

 

end of the quarter

1st Quarter

 

1,264

 

28

 

2

 

1,290

2nd Quarter

 

1,290

 

7

 

1

 

1,296

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2021

 

the quarter

 

quarter

 

during the quarter

 

quarter

1st Quarter

 

13,291,838

 

327,476

 

22,906

 

13,596,408

2nd Quarter

 

13,596,408

 

62,511

 

10,760

 

13,648,159

 

Exhibit 6

Ulta Beauty, Inc.

Sales by Category

 

The following tables set forth the approximate percentage of net sales by primary category:

 

 

 

 

 

 

 

13 weeks ended

 

 

July 31,

 

August 1,

 

 

2021

 

2020

Cosmetics (1)

 

43%

 

45%

Skincare (1)

 

17%

 

18%

Haircare products and styling tools (1)

 

21%

 

21%

Fragrance and bath

 

12%

 

9%

Services

 

4%

 

3%

Accessories and other (1)

 

3%

 

4%

 

 

100%

 

100%

 

 

 

 

 

 

 

26 weeks ended

 

 

July 31,

 

August 1,

 

 

2021

 

2020

Cosmetics (1)

 

44%

 

47%

Skincare (1)

 

18%

 

18%

Haircare products and styling tools (1)

 

20%

 

19%

Fragrance and bath

 

11%

 

8%

Services

 

4%

 

4%

Accessories and other (1)

 

3%

 

4%

 

 

100%

 

100%

 

(1) Certain sales departments were reclassified between categories in the prior year to conform to current year presentation.

Exhibit 7

Ulta Beauty, Inc.

Reconciliation of GAAP basis to Adjusted operating income (loss), Adjusted net income (loss)

and Adjusted diluted earnings (loss) per share

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

13 weeks ended

 

26 weeks ended

 

 

August 1,

 

August 1,

 

 

2020

 

2020

Operating income (loss)

 

$

12,755

 

$

(88,729)

Add: Store asset impairment

 

 

20,886

 

 

40,428

Add: Store closures

 

 

19,872

 

 

19,872

Add: Store closures - inventory write-off

 

 

1,400

 

 

1,400

Adjusted operating income (loss)

 

$

54,913

 

$

(27,029)

 

 

 

 

 

 

 

Net income (loss)

 

$

8,052

 

$

(70,457)

Add: Store asset impairment

 

 

20,886

 

 

40,428

Less: Income tax benefit of store asset impairment1

 

 

(4,303)

 

 

(9,662)

Add: Store closures

 

 

19,872

 

 

19,872

Less: Income tax benefit of store closures1

 

 

(4,094)

 

 

(4,749)

Add: Store closures - inventory write-off

 

 

1,400

 

 

1,400

Less: Income tax benefit of store closures - inventory write-off1

 

 

(288)

 

 

(335)

Adjusted net income (loss)

 

$

41,525

 

$

(23,503)

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

$

0.14

 

$

(1.25)

Add: Store asset impairment

 

 

0.37

 

 

0.72

Less: Income tax benefit of store asset impairment1

 

 

(0.08)

 

 

(0.17)

Add: Store closures

 

 

0.35

 

 

0.35

Less: Income tax benefit of store closures1

 

 

(0.07)

 

 

(0.09)

Add: Store closures - inventory write-off

 

 

0.03

 

 

0.03

Less: Income tax benefit of store closures - inventory write-off1

 

 

(0.01)

 

 

(0.01)

Adjusted diluted earnings (loss) per share

 

$

0.73

 

$

(0.42)

 

1 The income tax benefit for non-GAAP adjustments was calculated using the Company's blended tax rate before discrete items.

 

Investor Contacts:
Kiley Rawlins, CFA
Vice President, Investor Relations
krawlins@ulta.com
(331) 757-2206

Media Contact:
Eileen Ziesemer
Vice President, Public Relations
eziesemer@ulta.com
(708) 305-4479

Source: Ulta Beauty, Inc.