Ulta Beauty, Inc. stock research
FY2024 Q4
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Feb 1, 2025
Revenue increased sequentially and decreased year-over-year, while gross profit grew relative to the prior quarter and remained unchanged from the same quarter last year. Cost of revenue rose from the previous quarter and was flat annually, resulting in a gross margin that weakened sequentially but improved compared to the year-ago period.
Gross margin takeaway
Quarter ended Feb 1, 2025 · FY2024 Q4
Revenue increased sequentially and decreased year-over-year, while gross profit grew relative to the prior quarter and remained unchanged from the same quarter last year. Cost of revenue rose from the previous quarter and was flat annually, resulting in a gross margin that weakened sequentially but improved compared to the year-ago period.
- The most observable margin driver is the relative stability of cost of revenue: year-over-year, cost of revenue was unchanged while revenue declined, which lifted gross margin. The company's business overview describes a large specialty retail operation with a broad product mix that underpins this cost structure.
- Compared to the preceding quarter, gross margin decreased as cost of revenue rose proportionally more than gross profit. Compared to the same quarter one year earlier, gross margin improved despite lower revenue, because cost of revenue did not decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.2%
Gross profit
$1.3B
Revenue
$3.5B
Cost of revenue
$2.2B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Feb 1, 2025 | $3.5B | $1.3B | $2.2B | 38.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2024
-1.5 pts
Year-over-year change
Feb 3, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relative stability of cost of revenue: year-over-year, cost of revenue was unchanged while revenue declined, which lifted gross margin. The company's business overview describes a large specialty retail operation with a broad product mix that underpins this cost structure.
Compared to the preceding quarter, gross margin decreased as cost of revenue rose proportionally more than gross profit. Compared to the same quarter one year earlier, gross margin improved despite lower revenue, because cost of revenue did not decline.
Monitor the trajectory of cost of revenue, which remained flat year-over-year despite a revenue decline, as any shift in this cost structure could affect future margins.