Ulta Beauty, Inc 10-Q for FY2022 Q3

Ulta Beauty, Inc. (ULTA)

10-Q 2021-12-02 For: 2021-10-30

Added on April 04, 2026

About this 10-Q

Ulta Beauty, Inc filed this 10-Q on December 2, 2021, covering the quarter ended October 30, 2021 (FY2022 Q3).

Headline figures

Quarter ended October 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2B; up 28.6% from $1.55B a year earlier
Net income: $215.29M; up 187.8% from net income of $74.8M a year earlier
Diluted EPS: $3.94; up 198.5% from $1.32 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →



Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ULTA	The NASDAQ Global Select Market


Part I - Financial Information

Item 1. Financial Statements
Consolidated Balance Sheets		3
Consolidated Statements of Income		4
Consolidated Statements of Comprehensive Income		5
Consolidated Statements of Cash Flows		6
Consolidated Statements of Stockholders’ Equity		7
Notes to Consolidated Financial Statements		9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		19

Item 3. Quantitative and Qualitative Disclosures about Market Risk		28

Item 4. Controls and Procedures		29

Part II - Other Information		29

Item 1. Legal Proceedings		29

Item 1A. Risk Factors		29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		30

Item 3. Defaults Upon Senior Securities		30

Item 4. Mine Safety Disclosures		30

Item 5. Other Information		30

Item 6. Exhibits		31

SIGNATURES		32


	October 30,		January 30,		October 31,
(In thousands, except per share data)	2021		2021		2020
Assets		(Unaudited)				(Unaudited)
Current assets:
Cash and cash equivalents	$	605,053	$	1,046,051	$	560,902
Receivables, net		169,212		193,109		136,271
Merchandise inventories, net		1,916,343		1,168,215		1,439,098
Prepaid expenses and other current assets		105,584		107,402		99,810
Prepaid income taxes		37,501		—		8,928
Total current assets		2,833,693		2,514,777		2,245,009

Property and equipment, net		908,665		995,795		1,042,262
Operating lease assets		1,464,533		1,504,614		1,510,030
Goodwill		10,870		10,870		10,870
Other intangible assets, net		1,770		2,465		2,696
Deferred compensation plan assets		36,403		33,223		30,141
Other long-term assets		31,833		28,225		29,986
Total assets	$	5,287,767	$	5,089,969	$	4,870,994

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	747,451	$	477,052	$	478,501
Accrued liabilities		329,672		296,334		268,310
Deferred revenue		272,628		274,383		224,862
Current operating lease liabilities		274,365		253,415		252,171
Accrued income taxes		—		42,529		6,499
Total current liabilities		1,624,116		1,343,713		1,230,343

Non-current operating lease liabilities		1,565,921		1,643,386		1,661,750
Deferred income taxes		67,267		65,359		89,112
Other long-term liabilities		43,663		37,962		35,352
Total liabilities		3,300,967		3,090,420		3,016,557

Commitments and contingencies (Note 7)

Stockholders' equity:
Common stock, $0.01 par value, 400,000 shares authorized; 54,907, 56,952 and 57,024 shares issued; 54,170, 56,260 and 56,332 shares outstanding; at October 30, 2021 (unaudited), January 30, 2021, and October 31, 2020 (unaudited), respectively		549		569		570
Treasury stock-common, at cost		(53,312)		(37,801)		(37,704)
Additional paid-in capital		915,814		847,303		831,817
Retained earnings		1,123,749		1,189,422		1,059,840
Accumulated other comprehensive income (loss)		—		56		(86)
Total stockholders’ equity		1,986,800		1,999,549		1,854,437
Total liabilities and stockholders’ equity	$	5,287,767	$	5,089,969	$	4,870,994


	13 Weeks Ended				39 Weeks Ended
	October 30,		October 31,		October 30,		October 31,
(In thousands, except per share data)	2021		2020		2021		2020
Net sales	$	1,995,775	$	1,552,033	$	5,901,501	$	3,953,252
Cost of sales		1,206,301		1,006,514		3,560,276		2,775,121
Gross profit		789,474		545,519		2,341,225		1,178,131

Selling, general and administrative expenses		503,403		416,378		1,411,577		1,068,877
Impairment, restructuring and other costs		—		23,624		—		83,924
Pre-opening expenses		1,832		4,240		7,778		12,782
Operating income		284,239		101,277		921,870		12,548
Interest expense, net		413		1,383		1,196		5,272
Income before income taxes		283,826		99,894		920,674		7,276
Income tax expense		68,537		25,096		224,203		2,935
Net income	$	215,289	$	74,798	$	696,471	$	4,341

Net income per common share:
Basic	$	3.97	$	1.33	$	12.68	$	0.08
Diluted	$	3.94	$	1.32	$	12.60	$	0.08

Weighted average common shares outstanding:
Basic		54,291		56,327		54,921		56,355
Diluted		54,660		56,546		55,280		56,524


	13 Weeks Ended				39 Weeks Ended
	October 30,		October 31,		October 30,		October 31,
(In thousands)	2021		2020		2021		2020
Net income	$	215,289	$	74,798	$	696,471	$	4,341
Other comprehensive income:
Foreign currency translation adjustments		—		(116)		—		(86)
Comprehensive income	$	215,289	$	74,682	$	696,471	$	4,255


				Treasury -							Accumulated
	Common Stock			Common Stock			Additional				Other		Total
	Issued			Treasury			Paid-In		Retained		Comprehensive		Stockholders'
(In thousands)	Shares	Amount		Shares	Amount		Capital		Earnings		Income		Equity
Balance – January 30, 2021	56,952	$	569	(692)	$	(37,801)	$	847,303	$	1,189,422	$	56	$	1,999,549
Net income	—		—	—		—		—		230,289		—		230,289
Stock-based compensation	—		—	—		—		8,978		—		—		8,978
Foreign currency translation adjustments	—		—	—		—		—		—		(56)		(56)
Stock options exercised and other awards	94		1	—		—		5,031		—		—		5,032
Purchase of treasury shares	—		—	(21)		(6,766)		—		—		—		(6,766)
Repurchase of common shares	(1,243)		(12)	—		—		—		(392,297)		—		(392,309)
Balance – May 1, 2021	55,803	$	558	(713)	$	(44,567)	$	861,312	$	1,027,414	$	—	$	1,844,717
Net income	—		—	—		—		—		250,893		—		250,893
Stock-based compensation	—		—	—		—		10,119		—		—		10,119
Stock options exercised and other awards	104		1	—		—		17,775		—		—		17,776
Purchase of treasury shares	—		—	(1)		(208)		—		—		—		(208)
Repurchase of common shares	(747)		(8)	—		—		—		(243,476)		—		(243,484)
Balance – July 31, 2021	55,160	$	551	(714)	$	(44,775)	$	889,206	$	1,034,831	$	—	$	1,879,813
Net income	—		—	—		—		—		215,289		—		215,289
Stock-based compensation	—		—	—		—		19,120		—		—		19,120
Stock options exercised and other awards	87		1	—		—		7,488		—		—		7,489
Purchase of treasury shares	—		—	(23)		(8,537)		—		—		—		(8,537)
Repurchase of common shares	(340)		(3)	—		—		—		(126,371)		—		(126,374)
Balance – October 30, 2021	54,907	$	549	(737)	$	(53,312)	$	915,814	$	1,123,749	$	—	$	1,986,800


	Number of		Number of
Location	stores	Location	stores
Alabama	24	Montana	6
Alaska	3	Nebraska	5
Arizona	30	Nevada	15
Arkansas	11	New Hampshire	8
California	162	New Jersey	43
Colorado	26	New Mexico	7
Connecticut	18	New York	52
Delaware	3	North Carolina	39
Florida	90	North Dakota	3
Georgia	40	Ohio	45
Hawaii	4	Oklahoma	21
Idaho	9	Oregon	16
Illinois	55	Pennsylvania	45
Indiana	24	Rhode Island	3
Iowa	11	South Carolina	22
Kansas	13	South Dakota	3
Kentucky	15	Tennessee	28
Louisiana	18	Texas	119
Maine	3	Utah	14
Maryland	27	Vermont	1
Massachusetts	23	Virginia	30
Michigan	49	Washington	35
Minnesota	19	West Virginia	7
Mississippi	10	Wisconsin	20
Missouri	25	Wyoming	3
		Total	1,302


Period	Total number of shares purchased (1)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (2)	Approximate dollar value of shares that may yet be purchased under plans or programs (in thousands) (2)
August 1, 2021 to August 28, 2021	123,265	$	361.72	123,047	$	841,646
August 29, 2021 to September 25, 2021	106,816		377.96	106,507		801,390
September 26, 2021 to October 30, 2021	134,233		372.13	111,114		759,782
13 weeks ended October 30, 2021	364,314		370.32	340,668		759,782


			Incorporated by Reference
Exhibit Number	Description of document	Filed Herewith	Form	Exhibit Number	File Number	Filing Date

3.1	Certificate of Incorporation of Ulta Beauty, Inc.		8-K	3.1	001-33764	1/30/2017
3.2	Bylaws of Ulta Beauty, Inc., as amended through June 3, 2020		8-K	3.2	001-33764	6/8/2020
31.1	Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002	X
31.2	Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002	X
32	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101.INS	Inline XBRL Instance	X
101.SCH	Inline XBRL Taxonomy Extension Schema	X
101.CAL	Inline XBRL Taxonomy Extension Calculation	X
101.LAB	Inline XBRL Taxonomy Extension Labels	X
101.PRE	Inline XBRL Taxonomy Extension Presentation	X
101.DEF	Inline XBRL Taxonomy Extension Definition	X
104	Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).


	ULTA BEAUTY, INC.

	By:	/s/ David C. Kimbell
		David C. Kimbell Chief Executive Officer and Director

	By:	/s/ Scott M. Settersten
		Scott M. Settersten Chief Financial Officer, Treasurer and Assistant Secretary


	39 Weeks Ended
	October 30,		October 31,
(In thousands)	2021		2020
Operating activities
Net income	$	696,471	$	4,341
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		204,734		226,386
Non-cash lease expense		206,017		196,354
Long-lived asset impairment charge		—		69,932
Deferred income taxes		1,908		(255)
Stock-based compensation expense		38,217		22,979
Loss on disposal of property and equipment		3,357		5,219
Change in operating assets and liabilities:
Receivables		23,897		3,066
Merchandise inventories		(748,128)		(145,397)
Prepaid expenses and other current assets		1,818		3,007
Income taxes		(80,027)		13,958
Accounts payable		266,104		62,337
Accrued liabilities		24,482		24,582
Deferred revenue		(1,755)		(12,673)
Operating lease liabilities		(222,451)		(212,665)
Other assets and liabilities		213		(2,126)
Net cash provided by operating activities		414,857		259,045

Investing activities
Proceeds from short-term investments		—		110,000
Capital expenditures		(108,418)		(116,745)
Acquisitions, net of cash acquired		—		(1,220)
Purchases of equity investments		—		(5,665)
Net cash used in investing activities		(108,418)		(13,630)

Financing activities
Proceeds from long-term debt		—		800,000
Payments on long-term debt		—		(800,000)
Repurchase of common shares		(762,167)		(72,981)
Stock options exercised		30,297		1,346
Purchase of treasury shares		(15,511)		(3,256)
Debt issuance costs		—		(1,861)
Net cash used in financing activities		(747,381)		(76,752)


	13 Weeks Ended		39 Weeks Ended
	October 30,	October 31,	October 30,	October 31,
(Percentage of net sales)	2021	2020	2021	2020
Cosmetics (1)	45%	47%	44%	47%
Haircare products and styling tools (1)	21%	20%	20%	20%
Skincare (1)	16%	16%	17%	17%
Fragrance and bath	12%	10%	12%	9%
Services	3%	4%	4%	4%
Accessories and other (1)	3%	3%	3%	3%
	100%	100%	100%	100%


	13 weeks ended				39 weeks ended
	October 30,		October 31,		October 30,		October 31,
(In thousands)	2021		2020		2021		2020
Beginning balance	$	256,227	$	207,746	$	269,032	$	230,011
Additions to contract liabilities (1)		92,074		40,932		201,106		128,402
Deductions to contract liabilities (2)		(85,078)		(39,032)		(206,915)		(148,767)
Ending balance	$	263,223	$	209,646	$	263,223	$	209,646


	13 weeks ended		39 weeks ended
	October 31,		October 31,
(In thousands)	2020		2020
Impairment of long-lived tangible and right-of-use assets (1)	$	—	$	40,428

Store closures
Impairment of long-lived tangible and right-of-use assets (1)	$	—	$	19,569
Lease termination costs		1,844		1,844
Severance (2)		186		489
Total store closures		2,030		21,902

Suspension of Canadian expansion
Impairment of long-lived tangible and right-of-use assets (1)	$	9,935	$	9,935
Lease termination costs		5,317		5,317
Severance (2)		634		634
Total suspension of Canadian expansion		15,886		15,886

Other severance (2)	$	5,708	$	5,708
Total (3)	$	23,624	$	83,924