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Ulta Salon Cosmetics & Fragrances, Inc. (NAS:ULTA)
Gross Profit
$941 Mil (TTM As of Jan. 2014)

Ulta Salon Cosmetics & Fragrances, Inc.'s gross profit for the three months ended in Jan. 2014 was $294 Mil. Ulta Salon Cosmetics & Fragrances, Inc.'s gross profit for the trailing twelve months (TTM) ended in Jan. 2014 was $941 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Ulta Salon Cosmetics & Fragrances, Inc.'s gross profit for the three months ended in Jan. 2014 was $294 Mil. Ulta Salon Cosmetics & Fragrances, Inc.'s revenue for the three months ended in Jan. 2014 was $868 Mil. Therefore, Ulta Salon Cosmetics & Fragrances, Inc.'s Gross Margin for the quarter that ended in Jan. 2014 was 33.82%.

Ulta Salon Cosmetics & Fragrances, Inc. had a gross margin of 33.82% for the quarter that ended in Jan. 2014 => Competition eroding margins

During the past 12 years, the highest Gross Margin of Ulta Salon Cosmetics & Fragrances, Inc. was 35.30%. The lowest was 26.34%. And the median was 31.10%.


Definition

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

Ulta Salon Cosmetics & Fragrances, Inc.'s Gross Profit for the fiscal year that ended in Jan. 2014 is calculated as

Gross Profit (A: Jan. 2014 )=Revenue - Cost of Goods Sold
=2670.573 - 1729.325
=941

Ulta Salon Cosmetics & Fragrances, Inc.'s Gross Profit for the quarter that ended in Jan. 2014 is calculated as

Gross Profit (Q: Jan. 2014 )=Revenue - Cost of Goods Sold
=868.082 - 574.521
=294

Ulta Salon Cosmetics & Fragrances, Inc. Gross Profit for the trailing twelve months (TTM) ended in Jan. 2014 was 203.949 (Apr. 2013 ) + 212.077 (Jul. 2013 ) + 231.661 (Oct. 2013 ) + 293.561 (Jan. 2014 ) = $941 Mil.

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

Ulta Salon Cosmetics & Fragrances, Inc.'s Gross Margin for the quarter that ended in Jan. 2014 is calculated as

Gross Margin (Q: Jan. 2014 )=Gross Profit (Q: Jan. 2014 ) / Revenue (Q: Jan. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=294 / 868.082
=33.82 %

* 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 & Fragrances, Inc. had a gross margin of 33.82% for the quarter that ended in Jan. 2014 => 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 & Fragrances, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross_Profit 0174235284328377484617784941

Ulta Salon Cosmetics & Fragrances, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Gross_Profit 149198171168185260204212232294
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