Ulta Beauty, Inc. stock research
FY2023 Q2
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Jul 29, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly versus both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2023 Q2
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly versus both the preceding quarter and the same quarter last year.
- The decline in gross profit relative to revenue was the primary observable factor behind the margin weakening. Cost of revenue decreased at a slower pace than revenue, compressing the margin.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter a year ago, revenue was higher but gross profit was lower, resulting in a weaker gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.3%
Gross profit
$993.6M
Revenue
$2.5B
Cost of revenue
$1.5B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-1.1 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% |
| Jul 29, 2023 | $2.5B | $993.6M | $1.5B | 39.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
-0.8 pts
Year-over-year change
Jul 30, 2022
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit relative to revenue was the primary observable factor behind the margin weakening. Cost of revenue decreased at a slower pace than revenue, compressing the margin.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter a year ago, revenue was higher but gross profit was lower, resulting in a weaker gross margin.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.