Gross Margin % is calculated as gross profit divided by its revenue. Ulta Beauty's Gross Profit for the
three
months ended in Jan. 2024 was USD1,341 Mil. Ulta Beauty's Revenue for the
three
months ended in Jan. 2024 was USD3,554 Mil. Therefore, Ulta Beauty's Gross Margin % for the quarter that ended in Jan. 2024 was 37.72%.
The historical rank and industry rank for Ulta Beauty's Gross Margin % or its related term are showing as below:
ULTA'
s Gross Margin % Range Over the Past 10 Years
Min: 31.68 Med: 35.93 Max: 39.62
Current: 39.09
During the past 13 years, the highestGross Margin % of Ulta Beauty was 39.62%. The lowest was 31.68%. And the median was 35.93%.
ULTA's Gross Margin % is ranked better than 54.84% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs ULTA: 39.09
Ulta Beauty had a gross margin of 37.72% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ulta Beauty was 2.60% per year.
Ulta Beauty Gross Margin % Historical Data
The historical data trend for Ulta Beauty's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, Ulta Beauty's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ulta Beauty Gross Margin % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
Ulta Beauty (NAS:ULTA) Gross Margin % 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 Beauty had a gross margin of 37.72% for the quarter that ended in Jan. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ulta Beauty Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ulta Beauty's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
With 1,355 stores at the end of fiscal 2022 and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the U.S. The firm offers makeup (42% of 2022 sales), fragrances, skin care, and hair care products (21% of 2022 sales), and bath and body items. Ulta offers private-label products and merchandise from more than 500 vendors. It also offers salon services, including hair, makeup, skin, and brow services, in all stores. Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
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