Return on Equity (ROE)
since 2008
Calculation
Ulta Beauty Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jan 28, 2023 | 63.39% | = | 100 | × | 1,242,408) | ÷ | 1,959,811) |
| Jan 29, 2022 | 64.21% | = | 100 | × | 985,837) | ÷ | 1,535,373) |
| Jan 30, 2021 | 8.79% | = | 100 | × | 175,835) | ÷ | 1,999,549) |
| Feb 1, 2020 | 37.11% | = | 100 | × | 705,945) | ÷ | 1,902,094) |
| Feb 2, 2019 | 36.18% | = | 100 | × | 658,559) | ÷ | 1,820,218) |
| Feb 3, 2018 | 31.29% | = | 100 | × | 555,234) | ÷ | 1,774,217) |
| Jan 28, 2017 | 26.43% | = | 100 | × | 409,760) | ÷ | 1,550,218) |
| Jan 30, 2016 | 22.18% | = | 100 | × | 320,008) | ÷ | 1,442,886) |
| Jan 31, 2015 | 20.61% | = | 100 | × | 257,135) | ÷ | 1,247,509) |
| Feb 1, 2014 | 20.22% | = | 100 | × | 202,849) | ÷ | 1,003,094) |
| Feb 2, 2013 | 21.93% | = | 100 | × | 172,549) | ÷ | 786,942) |
| Jan 28, 2012 | 20.57% | = | 100 | × | 120,264) | ÷ | 584,704) |
| Jan 29, 2011 | 17.65% | = | 100 | × | 71,030) | ÷ | 402,533) |
| Jan 30, 2010 | 13.45% | = | 100 | × | 39,356) | ÷ | 292,608) |
| Jan 31, 2009 | 10.31% | = | 100 | × | 25,268) | ÷ | 244,968) |
| Feb 2, 2008 | 11.98% | = | 100 | × | 25,335) | ÷ | 211,503) |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
1 US$ in thousands
The financial trajectory from 2008 to 2023 is characterized by a sustained long-term expansion in profitability and shareholder equity, interrupted by a significant volatility event in 2021 and a subsequent surge in capital efficiency.
- Long-Term Growth Phase (2008–2020)
- Net income exhibited a consistent upward trajectory, increasing from $25.3 million in 2008 to $705.9 million in 2020. This growth was supported by a steady rise in stockholders' equity, which grew from $211.5 million to $1.9 billion over the same period. As a result, Return on Equity (ROE) climbed steadily from 11.98% to 37.11%, reflecting a progressive improvement in the capacity to generate profit from shareholders' investments.
- The 2021 Performance Contraction
- A sharp deviation is observed in 2021, where net income fell precipitously to $175.8 million. Despite this contraction in earnings, stockholders' equity continued to increase, reaching a peak of $1.99 billion. This combination of diminished net income and an expanded equity base led to a dramatic decline in ROE, which dropped to 8.79%, the lowest level recorded in the analyzed period.
- Post-2021 Recovery and Efficiency Spike (2022–2023)
- A rapid recovery occurred in 2022 and 2023, with net income surging to $985.8 million and $1.24 billion, respectively. Concurrently, stockholders' equity saw a reduction in 2022 to $1.53 billion before recovering to $1.96 billion in 2023. The simultaneous increase in net income and the temporary reduction in the equity base drove ROE to an unprecedented peak of 64.21% in 2022, maintaining a high level of 63.39% in 2023.
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Comparison to Competitors
Ulta Beauty Inc., ROE, long-term trends, comparison to competitors
| Ulta Beauty Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 63.39% | 15.07% | 1,095.07% | — | 54.97% |
| Jan 29, 2022 | 64.21% | -1.86% | — | — | 54.69% |
| Jan 30, 2021 | 8.79% | 24.13% | 390.00% | 406.05% | 1.55% |
| Feb 1, 2020 | 37.11% | 22.84% | — | 217.09% | 55.01% |
| Feb 2, 2019 | 36.18% | 18.67% | — | 63.50% | 60.61% |
| Feb 3, 2018 | 31.29% | 23.13% | 593.54% | 58.69% | 50.66% |
| Jan 28, 2017 | 26.43% | 10.95% | 183.64% | 48.07% | 50.95% |
| Jan 30, 2016 | 22.18% | 12.29% | 110.97% | 33.26% | 52.88% |
| Jan 31, 2015 | 20.61% | 4.45% | 68.06% | 27.07% | 51.95% |
| Feb 1, 2014 | 20.22% | -2.24% | 43.00% | 19.29% | 50.53% |
| Feb 2, 2013 | 21.93% | 2.81% | 25.51% | 14.14% | 52.01% |
| Jan 28, 2012 | 20.57% | -0.48% | 21.70% | 11.12% | 46.62% |
| Jan 29, 2011 | 17.65% | 8.13% | 17.67% | 11.10% | 43.33% |
| Jan 30, 2010 | 13.45% | 16.78% | 13.72% | 9.35% | 42.00% |
| Jan 31, 2009 | 10.31% | 17.16% | 12.71% | 12.16% | 41.26% |
| Feb 2, 2008 | 11.98% | 24.14% | 24.81% | 17.45% | 36.21% |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Ulta Beauty Inc., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ulta Beauty Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 28, 2023 | 63.39% | 29.39% |
| Jan 29, 2022 | 64.21% | 17.48% |
| Jan 30, 2021 | 8.79% | 35.05% |
| Feb 1, 2020 | 37.11% | 40.86% |
| Feb 2, 2019 | 36.18% | 40.77% |
| Feb 3, 2018 | 31.29% | 44.19% |
| Jan 28, 2017 | 26.43% | 38.11% |
| Jan 30, 2016 | 22.18% | 37.81% |
| Jan 31, 2015 | 20.61% | 32.09% |
| Feb 1, 2014 | 20.22% | 24.32% |
| Feb 2, 2013 | 21.93% | 19.26% |
| Jan 28, 2012 | 20.57% | 15.66% |
| Jan 29, 2011 | 17.65% | 15.30% |
| Jan 30, 2010 | 13.45% | 14.12% |
| Jan 31, 2009 | 10.31% | 14.43% |
| Feb 2, 2008 | 11.98% | 22.32% |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
Comparison to Industry (Consumer Discretionary)
Ulta Beauty Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| Ulta Beauty Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 28, 2023 | 63.39% | 29.93% |
| Jan 29, 2022 | 64.21% | 20.78% |
| Jan 30, 2021 | 8.79% | 33.71% |
| Feb 1, 2020 | 37.11% | 24.49% |
| Feb 2, 2019 | 36.18% | 34.62% |
| Feb 3, 2018 | 31.29% | 34.33% |
| Jan 28, 2017 | 26.43% | 22.85% |
| Jan 30, 2016 | 22.18% | 28.74% |
| Jan 31, 2015 | 20.61% | 29.03% |
| Feb 1, 2014 | 20.22% | 20.60% |
| Feb 2, 2013 | 21.93% | 20.34% |
| Jan 28, 2012 | 20.57% | 21.97% |
| Jan 29, 2011 | 17.65% | 34.92% |
| Jan 30, 2010 | 13.45% | 24.34% |
| Jan 31, 2009 | 10.31% | 25.32% |
| Feb 2, 2008 | 11.98% | 1.64% |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).