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Ulta Salon Cosmetics & Fragrance Inc (NAS:ULTA)
Gross Profit
$1,641 Mil (TTM As of Oct. 2016)

Ulta Salon Cosmetics & Fragrance Inc's gross profit for the three months ended in Oct. 2016 was $427 Mil. Ulta Salon Cosmetics & Fragrance Inc's gross profit for the trailing twelve months (TTM) ended in Oct. 2016 was $1,641 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 Oct. 2016 was $427 Mil. Ulta Salon Cosmetics & Fragrance Inc's revenue for the three months ended in Oct. 2016 was $1,131 Mil. Therefore, Ulta Salon Cosmetics & Fragrance Inc's Gross Margin for the quarter that ended in Oct. 2016 was 37.75%.

Ulta Salon Cosmetics & Fragrance Inc had a gross margin of 37.75% for the quarter that ended in Oct. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Ulta Salon Cosmetics & Fragrance Inc was 36.13%. 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 Oct. 2016 is calculated as

Gross Profit (Q: Oct. 2016 )=Revenue - Cost of Goods Sold
=1131.232 - 704.179
=427

Ulta Salon Cosmetics & Fragrance Inc Gross Profit for the trailing twelve months (TTM) ended in Oct. 2016 was 439.036 (Jan. 2016 ) + 390.43 (Apr. 2016 ) + 384.838 (Jul. 2016 ) + 427.053 (Oct. 2016 ) = $1,641 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 Oct. 2016 is calculated as

Gross Margin (Q: Oct. 2016 )=Gross Profit (Q: Oct. 2016 ) / Revenue (Q: Oct. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=427 / 1131.232
=37.75 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 37.75% for the quarter that ended in Oct. 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 local exchange's currency.

Ulta Salon Cosmetics & Fragrance Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross_Profit 2352843283774846177849411,1371,384

Ulta Salon Cosmetics & Fragrance Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
Gross_Profit 259282350303306336439390385427
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