Ulta Beauty Inc (ULTA)

Gross profit margin

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Gross profit (ttm)	US$ in thousands	4,381,099	4,253,039	4,223,789	4,158,341	4,044,507	3,859,337	3,685,994	3,555,793	3,368,555	3,112,253	2,868,298	2,399,342	1,949,159	1,985,016	2,062,930	2,339,822	2,681,064	2,615,038	2,563,883	2,493,445
Revenue (ttm)	US$ in thousands	11,207,300	10,879,770	10,729,630	10,496,930	10,208,570	9,711,190	9,368,180	9,038,280	8,630,900	8,100,210	7,656,460	6,917,260	6,151,950	6,259,170	6,389,650	6,828,250	7,398,070	7,216,870	7,094,370	6,915,980
Gross profit margin		39.09%	39.09%	39.37%	39.61%	39.62%	39.74%	39.35%	39.34%	39.03%	38.42%	37.46%	34.69%	31.68%	31.71%	32.29%	34.27%	36.24%	36.24%	36.14%	36.05%

February 3, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,381,099K ÷ $11,207,300K
= 39.09%

Ulta Beauty Inc's gross profit margin has shown fluctuations over the past 20 quarters, ranging from a low of 31.68% in January 2021 to a high of 39.74% in October 2022. The company's gross profit margin has generally been stable around the high 30% range, indicating the ability to effectively manage direct costs related to producing or purchasing the goods it sells.

There was a noticeable improvement in the gross profit margin trend from the second quarter of 2021 onwards, with margins consistently above 37%. This improvement suggests that Ulta Beauty has been successful in controlling its cost of goods sold and/or increasing the pricing of its products.

It is important to note the significant increase in gross profit margin from the first quarter of 2021 to the second quarter of 2021, which indicates a positive change in the company's profitability. However, the decline in gross profit margin in the first quarter of 2024 compared to the earlier quarters might warrant further investigation into factors affecting the company's profitability during that period.

Overall, Ulta Beauty's gross profit margin performance reflects its ability to efficiently manage costs and generate profits from its core operations.