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Ulta Salon Cosmetics & Fragrances Inc (NAS:ULTA)
Gross Profit
$1,137 Mil (TTM As of Jan. 2015)

Ulta Salon Cosmetics & Fragrances Inc's gross profit for the three months ended in Jan. 2015 was $350 Mil. Ulta Salon Cosmetics & Fragrances Inc's gross profit for the trailing twelve months (TTM) ended in Jan. 2015 was $1,137 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. 2015 was $350 Mil. Ulta Salon Cosmetics & Fragrances Inc's revenue for the three months ended in Jan. 2015 was $1,048 Mil. Therefore, Ulta Salon Cosmetics & Fragrances Inc's Gross Margin for the quarter that ended in Jan. 2015 was 33.38%.

Ulta Salon Cosmetics & Fragrances Inc had a gross margin of 33.38% for the quarter that ended in Jan. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Ulta Salon Cosmetics & Fragrances Inc was 35.30%. The lowest was 26.34%. And the median was 31.13%.


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. 2015 is calculated as

Gross Profit (A: Jan. 2015 )=Revenue - Cost of Goods Sold
=3241.369 - 2104.582
=1,137

Ulta Salon Cosmetics & Fragrances Inc's Gross Profit for the quarter that ended in Jan. 2015 is calculated as

Gross Profit (Q: Jan. 2015 )=Revenue - Cost of Goods Sold
=1047.641 - 697.904
=350

Ulta Salon Cosmetics & Fragrances Inc Gross Profit for the trailing twelve months (TTM) ended in Jan. 2015 was 245.953 (Apr. 2014 ) + 259.342 (Jul. 2014 ) + 281.755 (Oct. 2014 ) + 349.737 (Jan. 2015 ) = $1,137 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. 2015 is calculated as

Gross Margin (Q: Jan. 2015 )=Gross Profit (Q: Jan. 2015 ) / Revenue (Q: Jan. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=350 / 1047.641
=33.38 %

* 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 33.38% for the quarter that ended in Jan. 2015 => 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Gross_Profit 1742352843283774846177849411,137

Ulta Salon Cosmetics & Fragrances Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
Gross_Profit 185260204212232294246259282350
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