Ulta Beauty, Inc. stock research
FY2024 Q3
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Nov 2, 2024
Revenue was lower than the prior quarter but unchanged from a year ago. Gross profit was higher than both the prior quarter and the year-ago quarter, while cost of revenue was lower sequentially but similar year-over-year, resulting in a gross margin that improved from the prior quarter but weakened slightly compared with the same quarter last year.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2024 Q3
Revenue was lower than the prior quarter but unchanged from a year ago. Gross profit was higher than both the prior quarter and the year-ago quarter, while cost of revenue was lower sequentially but similar year-over-year, resulting in a gross margin that improved from the prior quarter but weakened slightly compared with the same quarter last year.
- The sequential improvement in gross margin was driven by a decline in cost of revenue alongside a smaller decline in revenue, leading to higher gross profit. Year-over-year, the slight weakening in margin reflected a modest increase in cost of revenue relative to revenue.
- Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.7%
Gross profit
$1.0B
Revenue
$2.5B
Cost of revenue
$1.5B
Quarter-over-quarter change
+1.4 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 |
|---|---|---|---|---|
| Feb 3, 2024 | $3.6B | $1.3B | $2.2B | 37.7% |
| May 4, 2024 | $2.7B | $1.1B | $1.7B | 39.2% |
| Aug 3, 2024 | $2.6B | $978.2M | $1.6B | 38.3% |
| Nov 2, 2024 | $2.5B | $1.0B | $1.5B | 39.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2024
+1.4 pts
Year-over-year change
Oct 28, 2023
-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 driven by a decline in cost of revenue alongside a smaller decline in revenue, leading to higher gross profit. Year-over-year, the slight weakening in margin reflected a modest increase in cost of revenue relative to revenue.
Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin was slightly lower.
Monitor merchandise inventory levels, as they are a significant component of working capital noted in the filing.