Ulta Beauty, Inc. stock research
FY2024 Q1
Ulta Beauty (ULTA) Gross Margin — Quarter Ended May 4, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin improved slightly from the previous quarter but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended May 4, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin improved slightly from the previous quarter but weakened relative to the same quarter last year.
- The improvement in gross margin from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. This suggests a favorable shift in the relationship between costs and sales.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin improved. Versus the same quarter last year, revenue was slightly higher while gross profit was stable, yet gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.2%
Gross profit
$1.1B
Revenue
$2.7B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| May 4, 2024 | $2.7B | $1.1B | $1.7B | 39.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2024
+1.5 pts
Year-over-year change
Apr 29, 2023
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. This suggests a favorable shift in the relationship between costs and sales.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin improved. Versus the same quarter last year, revenue was slightly higher while gross profit was stable, yet gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion drove the margin change this quarter.