Ulta Beauty, Inc. stock research
FY2023 Q4
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Feb 3, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but was stable compared to the same quarter last year.
Gross margin takeaway
Quarter ended Feb 3, 2024 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but was stable compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting gross profit expansion.
- Compared to the prior quarter, gross margin was lower as cost of revenue grew at a faster pace relative to revenue. Compared to the same quarter last year, gross margin was essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.7%
Gross profit
$1.3B
Revenue
$3.6B
Cost of revenue
$2.2B
Quarter-over-quarter change
-2.1 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 |
|---|---|---|---|---|
| Apr 29, 2023 | $2.6B | $1.1B | $1.6B | 40.0% |
| Jul 29, 2023 | $2.5B | $993.6M | $1.5B | 39.3% |
| Oct 28, 2023 | $2.5B | $992.1M | $1.5B | 39.9% |
| Feb 3, 2024 | $3.6B | $1.3B | $2.2B | 37.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
-2.1 pts
Year-over-year change
Jan 28, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting gross profit expansion.
Compared to the prior quarter, gross margin was lower as cost of revenue grew at a faster pace relative to revenue. Compared to the same quarter last year, gross margin was essentially unchanged.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin sustainability.