Net Sales of $1.6 billion compared to $1.7
billion in the year-ago quarter
Comparable Sales decreased (8.9%)
Net income of $74.8 million or $1.32 per
diluted share
Adjusted net income of $92.5 million or
$1.64 adjusted per diluted share
Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial
results for the thirteen-week period (“Third Quarter”) and
thirty-nine-week period (“First Nine Months”) ended October 31,
2020 compared to the same periods ended November 2, 2019. During
the third quarter of fiscal 2020, the Company recorded long-lived
asset impairment and restructuring related costs, primarily related
to the suspension of our Canadian expansion, which reduced reported
net income by $17.7 million or $0.32 per diluted share. A
reconciliation of non-GAAP financial measures to the respective
GAAP measures is included in this release.
“Today, we reported financial results that exceeded our
expectations as we continue to navigate a year of uncertainties
with agility and strength,” said Mary Dillon, chief executive
officer. “I am proud of how well our teams are responding and
leading throughout this difficult period, and I want to thank all
of our Ulta Beauty associates for their continued commitment to
serving our guests and taking care of each other during this
unprecedented time.”
“We know guests are changing how they shop beauty, but
importantly, their engagement with the category remains strong,”
continued Dillon. “As a well-loved brand curating all things
beauty, all in one place, we take great pride in our responsibility
to lead the industry and redefine beauty experiences for guests,
inclusive of safety measures. As the prevalence of COVID-19
increases across the country, we will continue to monitor closely
and adjust operations as needed to ensure the safe delivery of
beauty essentials.”
COVID-19 Response and
Impact
The Company’s financial results continue to be impacted by the
COVID-19 pandemic and efforts to contain it.
On March 19, 2020, Ulta Beauty temporarily closed all stores in
response to the spread of COVID-19. On April 19, 2020, the Company
introduced curbside pickup, and on May 11, 2020, the Company
started a phased store reopening process. By July 20, 2020, the
full fleet of Ulta Beauty stores was operational. By October 31,
2020, salon and brow services had resumed in almost all stores.
Reflecting operational limitations related to COVID-19 and the
partial resumption of services, the Company has reactivated more
than half of the furloughed associates. During the first nine
months of fiscal 2020, the Company incurred incremental operating
costs related to COVID-19 of approximately $160 million and
recorded a $51 million reduction of selling, general and
administrative (SG&A) expenses as a result of the employee
retention credits made available under the Coronavirus Aid, Relief
and Economic Security Act (CARES Act).
The Company began the fourth quarter with nearly all stores open
for retail. However, as COVID-19 prevalence increases,
market-specific government restrictions may also increase,
resulting in reduced operating hours, limitations on in-store
capacity, and in some cases, mandated store closures.
For the Third Quarter of Fiscal
2020
- Net sales decreased 7.8% to $1.6 billion compared to $1.7
billion in the third quarter of fiscal 2019 due to the impact of
COVID-19.
- Comparable sales (sales for stores open at least 14 months,
including stores temporarily closed due to COVID-19, and e-commerce
sales) decreased 8.9% compared to an increase of 3.2% in the third
quarter of fiscal 2019. In the third quarter of fiscal 2020,
transactions declined 15.4% and average ticket increased 7.6%.
- Gross profit decreased 12.5% to $545.5 million compared to
$623.4 million in the third quarter of fiscal 2019. As a percentage
of net sales, gross profit decreased to 35.1% compared to 37.1% in
the third quarter of fiscal 2019, primarily due to deleverage of
fixed costs due to lower sales and channel mix shifts. These
pressures were partially offset by higher merchandise margins
primarily due to lower promotional activity.
- SG&A expenses decreased 7.3% to $416.4 million compared to
$449.2 million in the third quarter of fiscal 2019. Lower store
payroll and benefits, store expenses, and marketing expenses were
partially offset by higher corporate overhead expenses and personal
protective equipment (PPE) and COVID-related expenses. As a
percentage of net sales, SG&A expenses increased to 26.8%
compared to 26.7% in the third quarter of fiscal 2019, due to lower
sales resulting from the impact of COVID-19.
- Impairment, restructuring and other costs of $23.6 million
includes $15.9 million related to the suspension of the planned
expansion to Canada, $5.7 million due to employee severance, and
$2.0 million lease termination costs related to the permanent
closure of 19 stores.
- Pre-opening expenses decreased to $4.2 million compared to $6.5
million in the third quarter of fiscal 2019. Real estate activity
in the third quarter of fiscal 2020 included 17 new stores and two
relocations compared to 31 new stores, three remodels, and two
relocations in the third quarter of fiscal 2019.
- Operating income decreased to $101.3 million, or 6.5% of net
sales, compared to $167.8 million, or 10.0% of net sales, in the
third quarter of fiscal 2019. Adjusted operating income was $124.9
million, or 8.0% of net sales.
- Tax rate increased to 25.1% compared to 23.1% in the third
quarter of fiscal 2019. The higher effective tax rate is primarily
due to less investment tax credits received.
- Net income was $74.8 million compared to $129.7 million in the
third quarter of fiscal 2019. Adjusted net income was $92.5 million
compared to $128.6 million in the third quarter of fiscal
2019.
- Diluted earnings per share was $1.32 compared to $2.25 in the
third quarter of fiscal 2019. Adjusted diluted earnings per share
was $1.64 compared to $2.23 in the third quarter of fiscal
2019.
For the First Nine Months of Fiscal 2020
- Net sales decreased 22.4% to $4.0 billion compared to $5.1
billion in first nine months of fiscal 2019 due to the impact of
COVID-19.
- Comparable sales decreased 23.8% compared to an increase of
5.4% in the first nine months of fiscal 2019. During the first nine
months of fiscal 2020, transactions declined 30.1% and average
ticket increased 9.0%.
- Gross profit decreased to $1.2 billion compared to $1.9 billion
in the first nine months of fiscal 2019. As a percentage of net
sales, gross profit decreased to 29.8% compared to 36.8% in the
first nine months of fiscal 2019, primarily due to deleverage of
fixed costs due to lower sales, channel mix shifts, and deleverage
of salon expenses due to lower sales. These pressures were
partially offset by lower promotional activity.
- SG&A expenses decreased to $1.1 billion compared to $1.2
billion in the first nine months of fiscal 2019. As a percentage of
net sales, SG&A expenses increased to 27.1% compared to 24.5%
in the first nine months of fiscal 2019, primarily due to higher
expenses related to strategic growth investments made in fiscal
2019, PPE and COVID-related expenses, and the deleverage of store
expenses due to lower sales resulting from the impact of COVID-19,
partially offset by leverage related to the store payroll and
benefits, including the employee retention credits made available
under the CARES Act.
- Impairment, restructuring and other costs of $83.9 million
includes $40.4 million due to the impairment of tangible long-lived
assets and operating lease assets associated with certain retail
stores, $21.9 million related to the permanent closure of 19
stores, $15.9 million related to the suspension of the planned
expansion to Canada, and $5.7 million due to employee
severance.
- Pre-opening expenses decreased to $12.8 million compared to
$15.7 million in the first nine months of fiscal 2019. Real estate
activity in the first nine months of fiscal 2020 included 28 new
stores and three relocations compared to 73 new stores, 12
remodels, and six relocations in first nine months of 2019.
- Operating income decreased to $12.5 million, or 0.3% of net
sales, compared to $613.3 million, or 12.0% of net sales, in the
first nine months of fiscal 2019. Adjusted operating income was
$97.9 million, or 2.5% of net sales.
- Tax rate increased to 40.3% compared to 21.8% in fiscal 2019.
The higher effective tax rate is primarily due to a near break-even
pre-tax operating income in fiscal 2020, less investment tax
credits received, and tax expense from the income tax accounting
for share-based compensation compared to a benefit in fiscal
2019.
- Net income was $4.3 million compared to $483.2 million in the
first nine months of fiscal 2019. Adjusted net income was $68.8
million compared to $469.0 million in the first nine months of
fiscal 2019.
- Diluted earnings per share was $0.08 compared to $8.27 in the
first nine months of fiscal 2019. Adjusted diluted earnings per
share was $1.22 compared to $8.03 in the first nine months of
fiscal 2019.
Balance Sheet
The Company ended the third quarter of fiscal 2020 with $560.9
million in cash and cash equivalents. During the first quarter of
fiscal 2020, as a precautionary measure reflecting economic
uncertainty due to COVID-19 and to enhance financial flexibility,
the Company drew down $800 million under its $1.0 billion credit
facility. The full amount of the drawdown was repaid in the third
quarter of fiscal 2020.
Merchandise inventories, net at the end of the third quarter of
fiscal 2020 totaled $1.4 billion compared to $1.6 billion at the
end of the third quarter of fiscal 2019. The decrease in total
inventory was primarily driven by the decline in sales due to
COVID-19 and lower holiday receipts, partially offset by an
increase due to 21 net new stores opened since November 2, 2019 and
the opening of the Jacksonville, FL fast fulfillment center.
Average inventory per store decreased 12.5% compared to the third
quarter of fiscal 2019.
Share Repurchase Program
As of October 31, 2020, $1.58 billion remained available under
the $1.6 billion share repurchase program announced in March 2020.
On April 2, 2020, the Company announced its repurchase program had
been suspended to preserve financial flexibility in the early
stages of the COVID-19 pandemic. While no shares were repurchased
in the third quarter, the Company may resume its stock repurchase
program in the fourth quarter of fiscal 2020.
Store Update
During the third quarter of fiscal 2020, the Company opened 17
stores located in Camarillo, CA; Chester, NJ; Easton, MD;
Farmingdale, NY; Flagstaff, AZ; Fort Worth, TX; Germantown, MD;
Lewisville, TX; Mission Hills, CA; Nashville, TN; Newtown, PA;
Southbury, CT; Springfield, MO; Stafford, VA; Toms River, NJ;
Valparaiso, IN; and Wayne, NJ. The Company ended the third quarter
of fiscal 2020 with 1,262 stores and square footage of 13,263,615.
In addition, the Company closed 19 stores during the third quarter
of fiscal 2020.
Fiscal 2020 Outlook
“Ulta Beauty is well positioned for
this gift giving season as consumers continue to seek moments of
joy, connection and self-care, and we are encouraged with early
holiday sales trends in November. However, the operating
environment continues to be dynamic. While it is difficult to
predict future impacts of the pandemic on demand this holiday
season, we have increased our sales expectations for the fourth
quarter and now anticipate comparable store sales will decline in
the range of 12% to 14%,” continued Dillon. "We know this holiday
season will be like no other, but our team is ready and excited to
help our guests see the joy of the season.”
The Company withdrew guidance for
fiscal 2020 on March 17, 2020 and is not providing an earnings
outlook at this time. However, the Company is providing the
following updated assumptions for fiscal 2020:
- The Company continues to expect to open approximately 30 new
stores and execute approximately five relocation projects. Although
plans for fiscal 2021 have not been finalized, the Company
continues to expect to open at least 30 new stores in fiscal 2021.
The Company will continue to evaluate these plans based on demand
and location economics, including committed costs incurred;
- The Company expects to incur between $180 million and $190
million in PPE and COVID-19 related operating costs, excluding
approximately $51 million reduction of SG&A expenses as a
result of the employee retention credits made available under the
CARES Act;
- The Company now expects to incur between $30 million and $40
million in conjunction with the decision to suspend its planned
expansion to Canada; and
- The Company anticipates capital expenditures will be between
$150 million and $160 million, compared to the previous expectation
of between $180 million and $200 million.
Non-GAAP Financial
Information
In this press release, the Company
provides information regarding adjusted operating income, adjusted
net income, and adjusted diluted earnings per share, which are not
recognized terms under U.S. generally accepted accounting
principles (GAAP) and do not purport to be alternatives to
operating income, net income, and diluted earnings per share as
measures of operating performance. A reconciliation of adjusted
operating income, adjusted net income, and adjusted diluted
earnings per share is provided in this release. The Company
believes the presentation of these non-GAAP financial measures
provides additional information on comparisons between periods by
excluding certain items that affect overall comparability and
provides investors with enhanced visibility into its results with
respect to the impact of certain costs. Non-GAAP financial measures
should be considered in addition to, and not as an alternative for,
the Company’s reported results prepared in accordance with
GAAP.
Conference Call
Information
A conference call to discuss third
quarter of fiscal 2020 results is scheduled for today, December 3,
2020, at 5:00 p.m. Eastern Time / 4:00 p.m. Central Time. Investors
and analysts interested in participating in the call are invited to
dial (877) 705‑6003. The conference call will also be webcast live
at http://ir.ultabeauty.com. A replay of the webcast will remain
available for 90 days. A replay of the conference call will be
available until 11:59 p.m. ET on December 17, 2020 and can be
accessed by dialing (844) 512‑2921 and entering conference ID
number 13712959.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful.
Ulta Beauty is the largest U.S. beauty retailer and the premier
beauty destination for cosmetics, fragrance, skin care products,
hair care products and salon services. In 1990, the Company
reinvented the beauty retail experience by offering a new way to
shop for beauty – bringing together all things beauty, all in one
place. Today, Ulta Beauty has grown to become the top national
retailer offering the complete beauty experience.
Ulta Beauty brings possibilities to life through the power of
beauty each and every day in our stores and online with more than
25,000 products from approximately 500 well-established and
emerging beauty brands across all categories and price points,
including Ulta Beauty’s own private label. Ulta Beauty also offers
a full-service salon in every store featuring hair, skin, brow, and
make-up services.
Ulta Beauty is recognized for its commitment to personalized
service, fun and inviting stores and our industry-leading Ultamate
Rewards loyalty program. Ulta Beauty operates retail stores across
50 states and also distributes its products through its website,
which includes a collection of tips, tutorials, and social content.
For more information, visit www.ulta.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, which reflect the
company’s current views with respect to, among other things, future
events and financial performance. These statements can be
identified by the use of forward-looking words such as “outlook,”
“believes,” “expects,” “plans,” “estimates,” “targets,”
“strategies” or other comparable words. Any forward-looking
statements contained in this press release are based upon the
company’s historical performance and on current plans, estimates
and expectations. The inclusion of this forward-looking information
should not be regarded as a representation by the company or any
other person that the future plans, estimates, targets, strategies
or expectations contemplated by the company will be achieved. Such
forward-looking statements are subject to various risks and
uncertainties, which include, without limitation:
- The negative impacts the coronavirus (COVID-19) has had, and
will continue to have, on the company’s business, financial
condition, profitability, cash flows and supply chain, as well as
consumer spending (including future uncertain impacts);
- epidemics, pandemics like COVID-19 or natural disasters that
have and could continue to negatively impact the company’s
sales;
- changes in the overall level of consumer spending and
volatility in the economy, including as a result of the COVID-19
pandemic;
- a decline in operating results that has and may continue to
lead to asset impairment and store closures charges;
- the company’s ability to sustain its growth plans and
successfully implement its long-range strategic and financial
plan;
- the company’s ability to gauge beauty trends and react to
changing consumer preferences in a timely manner;
- the possibility that the company may be unable to compete
effectively in its highly competitive markets;
- the company’s ability to execute its Efficiencies for Growth
cost optimization program;
- the possibility that cybersecurity breaches and other
disruptions could compromise the company’s information or result in
the unauthorized disclosure of confidential information;
- the possibility of material disruptions to the company’s
information systems;
- the possibility that the capacity of the company’s distribution
and order fulfillment infrastructure and the performance of its
newly opened and to be opened distribution centers may not be
adequate to support its recent growth and expected future growth
plans;
- changes in the wholesale cost of the company’s products;
- the possibility that new store openings and existing locations
may be impacted by developer or co-tenant issues;
- the company’s ability to attract and retain key executive
personnel;
- the company’s ability to successfully execute its common stock
repurchase program or implement future common stock repurchase
programs; and
- other risk factors detailed in the company’s public filings
with the Securities and Exchange Commission (the SEC), including
risk factors contained in its Annual Report on Form 10-K for the
fiscal year ended February 1, 2020, as such were amended and
supplemented in the Company’s Quarterly Report of Form 10-Q for the
quarterly period ended May 2, 2020, and which may be further
amended or supplemented in its subsequently filed Quarterly Reports
on Form 10-Q.
The company’s filings with the SEC are available at www.sec.gov.
Except to the extent required by the federal securities laws, the
Company does not undertake to publicly update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
Exhibit 1
Ulta Beauty, Inc.
Consolidated Statements of
Operations
(In thousands, except per
share data)
13 Weeks Ended
October 31,
November 2,
2020
2019
(Unaudited)
(Unaudited)
Net sales
$
1,552,033
100.0
%
$
1,682,514
100.0
%
Cost of sales
1,006,514
64.9
%
1,059,081
62.9
%
Gross profit
545,519
35.1
%
623,433
37.1
%
Selling, general and administrative
expenses
416,378
26.8
%
449,198
26.7
%
Impairment, restructuring and other
costs
23,624
1.5
%
—
0.0
%
Pre-opening expenses
4,240
0.3
%
6,455
0.4
%
Operating income
101,277
6.5
%
167,780
10.0
%
Interest expense (income), net
1,383
0.1
%
(900
)
(0.1
%)
Income before income taxes
99,894
6.4
%
168,680
10.1
%
Income tax expense
25,096
1.6
%
38,933
2.3
%
Net income
$
74,798
4.8
%
$
129,747
7.7
%
Net income per common share:
Basic
$
1.33
$
2.25
Diluted
$
1.32
$
2.25
Weighted average common shares
outstanding:
Basic
56,327
57,568
Diluted
56,546
57,763
Exhibit 2
Ulta Beauty, Inc.
Consolidated Statements of
Operations
(In thousands, except per
share data)
39 Weeks Ended
October 31,
November 2,
2020
2019
(Unaudited)
(Unaudited)
Net sales
$
3,953,252
100.0
%
$
5,092,150
100.0
%
Cost of sales
2,775,121
70.2
%
3,217,971
63.2
%
Gross profit
1,178,131
29.8
%
1,874,179
36.8
%
Selling, general and administrative
expenses
1,068,877
27.1
%
1,245,174
24.5
%
Impairment, restructuring and other
costs
83,924
2.1
%
—
0.0
%
Pre-opening expenses
12,782
0.3
%
15,667
0.3
%
Operating income
12,548
0.3
%
613,338
12.0
%
Interest expense (income), net
5,272
0.1
%
(4,617
)
(0.1
%)
Income before income taxes
7,276
0.2
%
617,955
12.1
%
Income tax expense
2,935
0.1
%
134,729
2.6
%
Net income
$
4,341
0.1
%
$
483,226
9.5
%
Net income per common share:
Basic
$
0.08
$
8.31
Diluted
$
0.08
$
8.27
Weighted average common shares
outstanding:
Basic
56,355
58,123
Diluted
56,524
58,396
Exhibit 3
Ulta Beauty, Inc.
Condensed Consolidated Balance
Sheets
(In thousands)
October 31,
February 1,
November 2,
2020
2020
2019
(Unaudited)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
560,902
$
392,325
$
208,843
Short-term investments
—
110,000
—
Receivables, net
136,271
139,337
112,888
Merchandise inventories, net
1,439,098
1,293,701
1,616,920
Prepaid expenses and other current
assets
99,810
103,567
118,343
Prepaid income taxes
8,928
16,387
40,474
Total current assets
2,245,009
2,055,317
2,097,468
Property and equipment, net
1,042,262
1,205,524
1,233,412
Operating lease assets
1,510,030
1,537,565
1,529,524
Goodwill
10,870
10,870
10,870
Other intangible assets, net
2,696
3,391
3,622
Deferred compensation plan assets
30,141
27,849
26,269
Other long-term assets
29,986
23,356
27,683
Total assets
$
4,870,994
$
4,863,872
$
4,928,848
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
478,501
$
414,009
$
594,993
Accrued liabilities
268,310
246,088
249,112
Deferred revenue
224,862
237,535
190,188
Current operating lease liabilities
252,171
239,629
222,627
Accrued income taxes
6,499
—
—
Total current liabilities
1,230,343
1,137,261
1,256,920
Non-current operating lease
liabilities
1,661,750
1,698,718
1,706,806
Deferred income taxes
89,112
89,367
83,856
Other long-term liabilities
35,352
36,432
34,110
Total liabilities
3,016,557
2,961,778
3,081,692
Commitments and contingencies
Total stockholders’ equity
1,854,437
1,902,094
1,847,156
Total liabilities and stockholders’
equity
$
4,870,994
$
4,863,872
$
4,928,848
Exhibit 4
Ulta Beauty, Inc.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
39 Weeks Ended
October 31,
November 2,
2020
2019
(Unaudited)
(Unaudited)
Operating activities
Net income
$
4,341
$
483,226
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
226,386
219,207
Non-cash lease expense
196,354
219,220
Long-lived asset impairment charge
69,932
—
Deferred income taxes
(255
)
(8
)
Stock-based compensation expense
22,979
19,108
Loss on disposal of property and
equipment
5,219
4,821
Change in operating assets and
liabilities:
Receivables
3,066
5,812
Merchandise inventories
(145,397
)
(402,591
)
Prepaid expenses and other current
assets
3,007
(5,487
)
Income taxes
13,958
(23,477
)
Accounts payable
62,337
190,977
Accrued liabilities
24,582
23,109
Deferred revenue
(12,673
)
(8,866
)
Operating lease liabilities
(212,665
)
(198,181
)
Other assets and liabilities
(2,126
)
30,636
Net cash provided by operating
activities
259,045
557,506
Investing activities
Short-term investments, net
110,000
—
Capital expenditures
(116,745
)
(241,136
)
Acquisitions, net of cash acquired
(1,220
)
—
Purchases of equity investments
(5,665
)
(43,757
)
Net cash used in investing activities
(13,630
)
(284,893
)
Financing activities
Proceeds from long-term debt
800,000
—
Payments on long-term debt
(800,000
)
—
Repurchase of common shares
(72,981
)
(506,868
)
Stock options exercised
1,346
43,211
Purchase of treasury shares
(3,256
)
(9,364
)
Debt issuance costs
(1,861
)
—
Net cash used in financing activities
(76,752
)
(473,021
)
Effect of exchange rate changes on cash
and cash equivalents
(86
)
—
Net increase (decrease) in cash and cash
equivalents
168,577
(200,408
)
Cash and cash equivalents at beginning of
period
392,325
409,251
Cash and cash equivalents at end of
period
$
560,902
$
208,843
Exhibit 5
Ulta Beauty, Inc.
2020 Store Update
Total stores open
Number of stores
Number of stores
Total stores
at beginning of the
opened during the
closed during the
open at
Fiscal 2020
quarter
quarter
quarter
end of the quarter
1st Quarter
1,254
11
1
1,264
2nd Quarter
1,264
0
0
1,264
3rd Quarter
1,264
17
19
1,262
Gross square feet for
Total gross square
stores opened or
Gross square feet for
Total gross square
feet at beginning of
expanded during the
stores closed
feet at end of the
Fiscal 2020
the quarter
quarter
during the quarter
quarter
1st Quarter
13,193,076
111,894
10,363
13,294,607
2nd Quarter
13,294,607
0
0
13,294,607
3rd Quarter
13,294,607
173,077
204,069
13,263,615
Exhibit 6
Ulta Beauty, Inc.
Reconciliation of GAAP basis
to Adjusted operating income, Adjusted net income and Adjusted
diluted earnings per share
(In thousands, except per
share data)
(Unaudited)
13 weeks ended
39 weeks ended
October 31,
November 2,
October 31,
November 2,
2020
2019
2020
2019
Operating income
$
101,277
$
167,780
$
12,548
$
613,338
Add: Store asset impairment
—
—
40,428
—
Add: Store closures and other costs1
2,030
—
23,302
—
Add: Suspension of Canadian expansion
15,886
—
15,886
—
Add: Severance
5,708
—
5,708
—
Adjusted operating income
$
124,901
$
167,780
$
97,872
$
613,338
Net income
$
74,798
$
129,747
$
4,341
$
483,226
Add: Store asset impairment
—
—
40,428
—
Less: Income tax benefit of store asset
impairment
—
—
(9,905
)
—
Add: Store closures1
2,030
—
23,302
—
Less: Income tax benefit of store
closures2
(510
)
—
(5,709
)
—
Add: Suspension of Canadian expansion
15,886
—
15,886
—
Less: Income tax benefit of suspension of
Canadian expansion2
(3,987
)
—
(3,892
)
—
Add: Severance
5,708
—
5,708
—
Less: Income tax benefit of severance2
(1,433
)
—
(1,398
)
—
Less: Stock compensation and other tax
credits
—
(1,138
)
—
(14,222
)
Adjusted net income
$
92,492
$
128,609
$
68,761
$
469,004
Diluted earnings per share
$
1.32
$
2.25
$
0.08
$
8.27
Add: Store asset impairment
—
—
0.72
—
Less: Income tax benefit of store asset
impairment
—
—
(0.18
)
—
Add: Store closures and other costs1
0.04
—
0.41
—
Less: Income tax benefit of store closures
and other costs2
(0.01
)
—
(0.10
)
—
Add: Suspension of Canadian expansion
0.28
—
0.28
—
Less: Income tax benefit of suspension of
Canadian expansion2
(0.07
)
—
(0.07
)
—
Add: Severance
0.10
—
0.10
—
Less: Income tax benefit of severance2
(0.02
)
—
(0.02
)
—
Less: Stock compensation and other tax
credits
—
(0.02
)
—
(0.24
)
Adjusted diluted earnings per share:
$
1.64
$
2.23
$
1.22
$
8.03
1
Store closures and other costs includes
$1,400 related to inventory write-offs, for the 39 weeks ended
October 31, 2020. There were no inventory write-offs included in
store closures and other costs for the 13 weeks ended October 31,
2020.
2
The income tax benefit for non-GAAP
adjustments was calculated using the Company's blended tax rate
before discrete items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201203005983/en/
Investor Contacts: Kiley Rawlins, CFA Vice President, Investor
Relations krawlins@ulta.com (331) 757-2206
Patrick Flaherty Senior Manager, Investor Relations
pflaherty@ulta.com (331) 253-3521
Media Contact: Eileen Ziesemer Vice President, Public Relations
eziesemer@ulta.com (708) 305-4479
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