Name: Ulta Beauty Inc. (NASDAQ:ULTA) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Ulta Beauty Inc., consolidated income statement

US$ in thousands

12 months ended:	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Net sales	10,208,580)	8,630,889)	6,151,953)	7,398,068)	6,716,615)	5,884,506)
Cost of sales	(6,164,070)	(5,262,335)	(4,202,794)	(4,717,004)	(4,307,304)	(3,787,697)
Gross profit	4,044,510)	3,368,554)	1,949,159)	2,681,064)	2,409,311)	2,096,809)
Selling, general and administrative expenses	(2,395,299)	(2,061,545)	(1,583,017)	(1,760,716)	(1,535,464)	(1,287,232)
Impairment, restructuring and other costs	—)	—)	(114,322)	—)	—)	—)
Pre-opening expenses	(10,601)	(9,517)	(15,000)	(19,254)	(19,767)	(24,286)
Operating income	1,638,610)	1,297,492)	236,820)	901,094)	854,080)	785,291)
Interest income (expense), net	4,934)	(1,663)	(5,735)	5,056)	5,061)	1,568)
Income before income taxes	1,643,544)	1,295,829)	231,085)	906,150)	859,141)	786,859)
Income tax expense	(401,136)	(309,992)	(55,250)	(200,205)	(200,582)	(231,625)
Net income	1,242,408)	985,837)	175,835)	705,945)	658,559)	555,234)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

Financial performance from 2018 to 2023 is characterized by steady initial growth, a significant contraction in 2021, and a subsequent aggressive expansion in revenue and profitability. Net sales grew from 5.88 billion in 2018 to 10.21 billion by 2023, representing a substantial long-term upward trajectory despite a temporary volatility period.

Revenue and Sales Trends: Net sales exhibited consistent growth between 2018 and 2020, peaking at 7.40 billion. A sharp decline occurred in 2021, where sales dropped to 6.15 billion. However, a strong recovery followed, with sales surging to 8.63 billion in 2022 and reaching a period high of 10.21 billion in 2023. This indicates a high capacity for revenue recovery and accelerated growth in the most recent fiscal years.
Gross Profitability and Margin Analysis: Gross profit followed a similar pattern to net sales, falling to 1.95 billion in 2021 before climbing to 4.04 billion in 2023. The gross margin percentage remained relatively stable around 36% from 2018 to 2020, experienced a contraction in 2021, and then improved significantly to approximately 39.6% by 2023. This suggests enhanced pricing power or more efficient cost of sales management in the latter years.
Operational Expenditure and Efficiency: Selling, general and administrative expenses grew in tandem with sales but showed relative stability during the 2021 downturn. A notable one-time impairment and restructuring cost of 114 million was recorded in 2021, which contributed to the compression of operating income during that period. Pre-opening expenses showed a general downward trend over the six-year period, decreasing from 24 million in 2018 to 10.6 million in 2023.
Operating and Net Income Performance: Operating income experienced a severe contraction in 2021, dropping to 237 million from a 2020 peak of 901 million. This was followed by a rapid rebound to 1.30 billion in 2022 and 1.64 billion in 2023. Net income mirrored this volatility, reaching a low of 176 million in 2021 before escalating to 1.24 billion in 2023, reflecting a significant increase in overall bottom-line profitability.

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