Ulta Beauty, Inc. stock research
FY2025 Q1
Ulta Beauty (ULTA) Gross Margin — Quarter Ended May 3, 2025
Revenue and gross profit were both lower compared to the immediately preceding quarter, while cost of revenue decreased proportionally less, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were relatively stable, cost of revenue remained roughly consistent, and gross margin was nearly unchanged.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q1
Revenue and gross profit were both lower compared to the immediately preceding quarter, while cost of revenue decreased proportionally less, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were relatively stable, cost of revenue remained roughly consistent, and gross margin was nearly unchanged.
- The gross margin improved sequentially, reflecting a favorable relationship between revenue and cost of revenue during the current quarter. The most observable driver was the moderation in cost of revenue relative to revenue, leading to margin expansion.
- Compared to the preceding quarter, gross margin strengthened, while revenue and gross profit both decreased. Relative to the same quarter a year ago, gross margin was mixed with a slight weakening, as revenue and gross profit were slightly higher but cost of revenue grew at a similar pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.1%
Gross profit
$1.1B
Revenue
$2.8B
Cost of revenue
$1.7B
Quarter-over-quarter change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| May 3, 2025 | $2.8B | $1.1B | $1.7B | 39.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2025
+0.9 pts
Year-over-year change
May 4, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially, reflecting a favorable relationship between revenue and cost of revenue during the current quarter. The most observable driver was the moderation in cost of revenue relative to revenue, leading to margin expansion.
Compared to the preceding quarter, gross margin strengthened, while revenue and gross profit both decreased. Relative to the same quarter a year ago, gross margin was mixed with a slight weakening, as revenue and gross profit were slightly higher but cost of revenue grew at a similar pace.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion increased in the year-over-year comparison despite stable gross profit.