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Ulta Salon Cosmetics & Fragrance Inc (NAS:ULTA)
Gross Profit
$1,550 Mil (TTM As of Jul. 2016)

Ulta Salon Cosmetics & Fragrance Inc's gross profit for the three months ended in Jul. 2016 was $385 Mil. Ulta Salon Cosmetics & Fragrance Inc's gross profit for the trailing twelve months (TTM) ended in Jul. 2016 was $1,550 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Ulta Salon Cosmetics & Fragrance Inc's gross profit for the three months ended in Jul. 2016 was $385 Mil. Ulta Salon Cosmetics & Fragrance Inc's revenue for the three months ended in Jul. 2016 was $1,069 Mil. Therefore, Ulta Salon Cosmetics & Fragrance Inc's Gross Margin for the quarter that ended in Jul. 2016 was 35.99%.

Ulta Salon Cosmetics & Fragrance Inc had a gross margin of 35.99% for the quarter that ended in Jul. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Ulta Salon Cosmetics & Fragrance Inc was 35.86%. The lowest was 30.23%. And the median was 34.00%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Ulta Salon Cosmetics & Fragrance Inc's Gross Profit for the fiscal year that ended in Jan. 2016 is calculated as

Gross Profit (A: Jan. 2016 )=Revenue - Cost of Goods Sold
=3924.116 - 2539.783
=1,384

Ulta Salon Cosmetics & Fragrance Inc's Gross Profit for the quarter that ended in Jul. 2016 is calculated as

Gross Profit (Q: Jul. 2016 )=Revenue - Cost of Goods Sold
=1069.215 - 684.377
=385

Ulta Salon Cosmetics & Fragrance Inc Gross Profit for the trailing twelve months (TTM) ended in Jul. 2016 was 335.638 (Oct. 2015 ) + 439.036 (Jan. 2016 ) + 390.43 (Apr. 2016 ) + 384.838 (Jul. 2016 ) = $1,550 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Ulta Salon Cosmetics & Fragrance Inc's Gross Margin for the quarter that ended in Jul. 2016 is calculated as

Gross Margin (Q: Jul. 2016 )=Gross Profit (Q: Jul. 2016 ) / Revenue (Q: Jul. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=385 / 1069.215
=35.99 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ulta Salon Cosmetics & Fragrance Inc had a gross margin of 35.99% for the quarter that ended in Jul. 2016 => Competition eroding margins


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Ulta Salon Cosmetics & Fragrance Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross_Profit 2352843283774846177849411,1371,384

Ulta Salon Cosmetics & Fragrance Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
Gross_Profit 246259282350303306336439390385
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