Ulta Beauty, Inc. stock research
FY2023 Q1
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Apr 29, 2023
Revenue decreased from the prior quarter, but gross profit declined less than proportionally, resulting in an improved gross margin. Compared to the same quarter last year, revenue was higher while gross margin was slightly lower.
Gross margin takeaway
Quarter ended Apr 29, 2023 · FY2023 Q1
Revenue decreased from the prior quarter, but gross profit declined less than proportionally, resulting in an improved gross margin. Compared to the same quarter last year, revenue was higher while gross margin was slightly lower.
- The sequential improvement in gross margin was the strongest observable driver, as cost of revenue fell at a faster rate than revenue.
- Gross margin improved from the immediately preceding quarter but was marginally weaker than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.0%
Gross profit
$1.1B
Revenue
$2.6B
Cost of revenue
$1.6B
Quarter-over-quarter change
+2.5 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 28, 2023 | $3.2B | $1.2B | $2.0B | 37.6% |
| Apr 29, 2023 | $2.6B | $1.1B | $1.6B | 40.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
+2.5 pts
Year-over-year change
Apr 30, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest observable driver, as cost of revenue fell at a faster rate than revenue.
Gross margin improved from the immediately preceding quarter but was marginally weaker than the same quarter one year earlier.
Monitor merchandise inventory levels, which are a significant component of working capital and can affect cost of revenue.