Net Sales Increased 22.6%
Comparable Sales Increased 8.8%
Diluted EPS Increased 51.8% to $3.40, Including $0.65 Net Benefit
from Tax Reform Related Items
Company Issues One-Time Bonuses for Hourly Associates
Company Approves New Share Repurchase Authorization of $625 Million
BOLINGBROOK, Ill.--(BUSINESS WIRE)--
Ulta Beauty, Inc. (NASDAQ:ULTA) today announced financial results for
the fourth quarter and full year of fiscal 2017 ended February 3, 2018,
both of which contain one additional week (“53rd week”)
versus the comparable prior periods.
“The Ulta Beauty team delivered excellent results in 2017, achieving 11
percent comparable sales growth and 25 percent adjusted earnings
growth,” said Mary Dillon, Chief Executive Officer. “We also achieved
strong sales and earnings growth in Q4 while continuing to gain market
share and make significant progress on our strategic imperatives,
despite continued moderation in the growth rate of makeup, our largest
category.”
Tax Reform
On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law.
This new legislation reduced the federal corporate tax rate to 21.0%
effective January 1, 2018. In accordance with Section 15 of the Internal
Revenue Code, the Company utilized a blended rate of 33.7% for its
fiscal 2017 tax year by applying a prorated percentage of the number of
days prior to and subsequent to the January 1, 2018 effective date. The
Company recorded a provisional estimated after-tax benefit of $38.3
million during the fourth quarter of 2017 based on the re-measurement of
its net deferred tax liabilities and $9.8 million due to the lower tax
rate in January 2018. Given the significant complexity of the Tax Cuts
and Jobs Act, the Company will continue to evaluate and analyze the
impact of this legislation. The $38.3 million estimate is provisional
and based on the Company’s initial analysis of the Tax Cuts and Jobs
Act, and may be adjusted in future periods due to, among other things,
additional analysis performed by the Company and additional guidance
that may be issued by the U.S. Department of Treasury, the Securities
and Exchange Commission, and/or the Financial Accounting Standards
Board. These benefits, in part offset by a $12.3 million expense for
one-time bonuses for hourly associates, impacted fourth quarter and
fiscal 2017 diluted earnings per share by approximately $0.65.
For the Fourth Quarter of Fiscal 2017
-
Net sales increased 22.6% to $1,937.6 million compared to $1,580.6
million in the fourth quarter of fiscal 2016. Excluding the impact of
the 53rd week in fiscal 2017, net sales increased 15.7%;
-
Net sales in the 53rd week were $108.8 million and
represented approximately $0.14 of diluted earnings per share;
-
Comparable sales (sales for stores open at least 14 months and
e-commerce sales) increased 8.8% compared to an increase of 16.6% in
the fourth quarter of fiscal 2016. The 8.8% comparable sales increase
was driven by 6.2% transaction growth and 2.6% growth in average
ticket;
-
Retail comparable sales increased 4.2%, including salon comparable
sales growth of 3.2%;
-
Salon sales increased 17.2% to $73.7 million compared to $62.9 million
in the fourth quarter of fiscal 2016. Excluding the impact of the 53rd
week in fiscal 2017, salon sales increased 8.7%;
-
E-commerce sales increased 60.4% to $248.3 million, including the
benefit of the 53rd week, compared to $154.9 million in the
fourth quarter of fiscal 2016. E-commerce comparable sales increased
50.4%, representing 460 basis points of the total company comparable
sales increase of 8.8%;
-
Gross profit as a percentage of net sales decreased 50 basis points to
34.0% compared to 34.5% in the fourth quarter of fiscal 2016. Gross
profit decreased 30 basis points due to deleverage in merchandise
margins and 20 basis points due to a one-time bonus payment related to
tax reform;
-
Selling, general and administrative (SG&A) expenses as a percentage of
net sales increased 60 basis points to 20.6%, compared to 20.0% in the
fourth quarter of fiscal 2016. SG&A increased 50 basis points due to
deleverage of investments in store labor to support our growth
initiatives and 40 basis points due to the one-time bonus payment
related to tax reform, partially offset by leverage of 30 basis points
in corporate overhead;
-
Pre-opening expenses decreased to $4.3 million compared to $4.4
million in the fourth quarter of fiscal 2016. Real estate activity in
the fourth quarter of fiscal 2017 included 16 new stores, two
relocations and one remodel compared to 25 new stores and one remodel
in the fourth quarter of fiscal 2016;
-
Operating income increased 13.5% to $254.4 million, or 13.1% of net
sales, compared to $224.2 million, or 14.2% of net sales, in the
fourth quarter of fiscal 2016. Adjusted operating income of $266.7
million, or 13.8% of net sales, increased 19.0%, compared to $224.2
million, or 14.2% of net sales, in the fourth quarter of fiscal 2016.
Adjusted operating income excludes $12.3 million for one-time bonus
payments related to tax reform;
-
Tax rate decreased to 18.3% compared to 37.5% in the fourth quarter of
fiscal 2016. The decrease was due to a reduction of net deferred
income tax liabilities and a lower effective tax rate in January 2018
as a result of tax reform;
-
Net income increased 48.5% to $208.2 million compared to $140.2
million in the fourth quarter of fiscal 2016; and
-
Earnings per diluted share increased 51.8% to $3.40, compared to $2.24
in the fourth quarter of fiscal 2016. Adjusted earnings per diluted
share of $2.75, which excludes a $0.65 net benefit due to tax reform
related items, increased 22.8%, compared to $2.24 in the fourth
quarter of fiscal 2016.
|
|
|
Fourth Quarter 2017 Adjusted Diluted Earnings Per Share Results
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
2017
|
|
2016
|
|
Diluted EPS (GAAP)
|
|
$ 3.40
|
|
|
$ 2.24
|
|
Adjustments related to tax reform:
|
|
|
|
|
|
Re-measurement of net deferred tax liabilities
|
|
(0.62
|
)
|
|
-
|
|
Impact of lower tax rate in January 2018
|
|
(0.16
|
)
|
|
-
|
|
One-time bonus for hourly associates
|
|
0.13
|
|
|
-
|
|
Adjusted diluted EPS (non-GAAP)
|
|
$ 2.75
|
|
|
$ 2.24
|
|
|
|
|
|
|
|
For the Full Year of Fiscal Year 2017
-
Net sales, including the benefit of the 53rd week,
increased 21.2% to $5,884.5 million from $4,854.7 million in fiscal
2016. Excluding the impact of the 53rd week in fiscal 2017,
net sales increased 19.0%;
-
Net sales in the 53rd week were $108.8 million and
represented approximately $0.14 of diluted earnings per share;
-
Comparable sales increased 11.0% compared to an increase of 15.8% in
fiscal 2016. The 11.0% comparable sales increase was driven by 6.7%
transaction growth and 4.3% growth in average ticket;
-
Retail comparable sales increased 7.1%, including salon comparable
sales growth of 6.1%;
-
Salon sales increased 15.0% to $277.4 million compared to $241.1
million in fiscal 2016. Excluding the impact of the 53rd
week in fiscal 2017, salon sales increased 12.8%;
-
E-commerce sales increased 64.7% to $568.7 million, including the
benefit of the 53rd week, compared to $345.3 million in
fiscal 2016. E-commerce comparable sales increased 59.9%, representing
390 basis points of the total company comparable sales increase of
11.0%;
-
Gross profit as a percentage of net sales decreased 40 basis points to
35.6% compared to 36.0% in fiscal 2016. Gross profit decreased 30
basis points due to deleverage in merchandise margins and 10 basis
points due to the impact of a one-time bonus payment related to tax
reform;
-
SG&A expenses as a percentage of net sales decreased 20 basis points
to 21.9% compared to 22.1% in fiscal 2016. SG&A decreased 50 basis
points due to leverage in corporate overhead and 20 basis points due
to leverage in variable store expenses attributed to cost efficiencies
and higher sales volume, partially offset by 30 basis points of
deleverage in store labor and 20 basis points due to the impact of a
one-time bonus payment related to tax reform;
-
Pre-opening expenses increased to $24.3 million, compared to $18.6
million in fiscal 2016. Real estate activity in fiscal 2017 included
102 new stores, seven relocations and 11 remodels compared to 104 new
stores, two relocations and 12 remodels in fiscal 2016;
-
Operating income increased 19.9% to $785.3 million, or 13.3% of net
sales, compared to $654.8 million, or 13.5% of net sales, in fiscal
2016. Adjusted operating income of $797.6 million or 13.6% of net
sales, increased 21.8%, compared to $654.8 million, or 13.5% of net
sales, in fiscal 2016. Adjusted operating income excludes $12.3
million for one-time bonus payments related to tax reform;
-
Tax rate decreased to 29.4% compared to 37.5% in fiscal 2016. The
decrease was primarily due to a reduction of net deferred income tax
liabilities and a lower effective tax rate in January 2018 as a result
of tax reform and the adoption of a new accounting standard in fiscal
2017 for employee share-based payments;
-
Net income increased 35.5% to $555.2 million compared to $409.8
million in fiscal 2016; and
-
Earnings per diluted share increased 37.4% to $8.96 compared to $6.52
in fiscal 2016. Adjusted earnings per diluted share of $8.16, which
excludes a $0.65 net benefit due to tax reform related items and a
$0.15 benefit due to accounting for share-based payments, increased
25.2%, compared to $6.52 in fiscal 2016.
|
|
|
Fiscal Year 2017 Adjusted Diluted Earnings Per Share Results
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
|
|
|
2017
|
|
2016
|
|
Diluted EPS (GAAP)
|
|
$ 8.96
|
|
|
$ 6.52
|
|
Adjustments related to tax reform:
|
|
|
|
|
|
Re-measurement of net deferred tax liabilities
|
|
(0.62
|
)
|
|
-
|
|
Impact of lower tax rate in January 2018
|
|
(0.16
|
)
|
|
-
|
|
One-time bonus for hourly associates
|
|
0.13
|
|
|
-
|
|
Other tax rate impacts:
|
|
|
|
|
|
Share-based accounting change
|
|
(0.15
|
)
|
|
-
|
|
Adjusted diluted EPS (non-GAAP)
|
|
$ 8.16
|
|
|
$ 6.52
|
|
|
|
|
|
|
|
Balance Sheet
Merchandise inventories at the end of fiscal 2017 totaled $1,096.4
million compared to $944.0 million at the end of fiscal 2016,
representing an increase of $152.4 million. Average inventory per store
increased 5.3% compared to fiscal 2016. The increase in inventory was
driven by 100 net new stores, the ramp up of the Dallas, Texas
distribution center, investments in inventory to ensure high in-stock
levels to support sales growth, and the expansion of certain prestige
brands.
The Company ended fiscal 2017 with $397.4 million in cash and short-term
investments.
Share Repurchase Program
During fiscal 2017, the Company repurchased 1,503,545 shares of its
stock at a cost of $367.6 million. As of February 3, 2018, $78.6 million
remained available under the $425.0 million share repurchase program
announced in March 2017.
On March 13, 2018, the Company’s board of directors approved a new share
repurchase authorization of $625.0 million, which replaces the prior
authorization implemented in March 2017. Since 2014, Ulta Beauty has
returned nearly $1.0 billion to shareholders through its share
repurchase program, while continuing to make strategic growth
investments.
Store Expansion
During the fourth quarter of fiscal 2017, the Company opened 16 stores
located in Bixby, OK; Boston, MA; Covington, WA; Fall River, MA;
Greenvale, NY; Lafayette, IN; Lake Jackson, TX; Los Angeles, CA;
Memphis, TN; Midlothian, TX; Montvale, NJ; North Miami Beach, FL; San
Antonio, TX; St. Peters, MO; Turnersville, NJ; and White Lake, MI. The
Company ended fiscal 2017 with 1,074 stores and square footage of
11,300,920, representing a 10.0% increase in square footage compared to
fiscal 2016.
Outlook
“Looking ahead to 2018, we are deploying a portion of the tax reform
benefits to invest in our people and accelerate investments to drive
growth and innovation,” said Mary Dillon. “We also recognize operating
margin headwinds from various cost pressures facing all retailers, our
higher than expected mix of e-commerce, and the new revenue recognition
accounting standard. To help offset these pressures, we are implementing
a cost optimization program to deliver benefits in the areas of indirect
procurement, end-to-end operational efficiency, real estate costs, and
merchandise margin improvement. We plan to increase operating profit
margin rate over the long term, but this measure is expected to decline
modestly in 2018. Going forward, rather than guiding to a precise
operating margin target or timeline, we will instead ask our
stakeholders to focus on how we create value through our very healthy
earnings per share and margin dollar growth. We are confident that our
plan allows us to continue delivering industry leading results, while
making us a more competitive employer, enhancing the guest experience,
and allowing us to invest in growth platforms to drive sustainable
differentiation and the long-term success of the business.”
For fiscal 2018, the Company plans to:
-
increase total sales in the low teens percentage range;
-
achieve comparable sales growth of approximately 6% to 8%, including
the impact of e-commerce;
-
grow e-commerce sales in the 40% range;
-
open approximately 100 new stores and execute 17 remodel or relocation
projects;
-
adopt Accounting Standards Update 2014-09, Revenue from Contracts with
Customers, which will increase sales by approximately $50 million and
decrease operating profit margin rate by approximately 20 basis points;
-
deleverage operating profit margin rate in the range of 50 to 70 basis
points;
-
deliver GAAP earnings per share growth in the 20 percentage range,
including the impact of approximately $500 million in share
repurchases and assuming a 24% effective tax rate; and
-
incur capital expenditures of $375 million in fiscal 2018, compared to
fiscal 2017 capital expenditures of $441 million.
For the first quarter of fiscal 2018, the Company expects net sales in
the range of $1,506 million to $1,519 million, compared to actual net
sales of $1,314.9 million in the first quarter of fiscal 2017.
Comparable sales for the first quarter of fiscal 2018, including
e-commerce sales, are expected to increase 6% to 7%. The Company
reported a comparable sales increase of 14.3% in the first quarter of
fiscal 2017.
Earnings per diluted share for the first quarter of fiscal 2018 is
estimated to be in the range of $2.43 to $2.48. This compares to
earnings per diluted share for the first quarter of fiscal 2017 of $2.05.
Non-GAAP Financial Information
The Company has used non-GAAP financial measures in this press release.
Adjusted financial measures refer to financial information adjusted to
exclude from financial measures prepared in accordance with accounting
principles generally accepted in the United States (GAAP) items
identified in this press release. The Company believes that the
presentation of adjusted financial results provides additional
information on comparisons between periods by excluding certain items
that affect overall comparability. Non-GAAP financial measures should be
considered in addition to, and not as an alternative for, the Company’s
reported results prepared in accordance with GAAP.
Conference Call Information
A conference call to discuss fourth quarter of fiscal 2017 results is
scheduled for today, March 15, 2018, at 5:00 p.m. Eastern Time /
4:00 p.m. Central Time. Investors and analysts interested in
participating in the call are invited to dial (877) 705-6003. The
conference call will also be webcast live at http://ir.ultabeauty.com.
A replay of the webcast will remain available for 90 days. A replay of
the conference call will be available until 11:59 p.m. ET on March 29,
2018 and can be accessed by dialing (844) 512-2921 and entering
conference ID number 13676924.
About Ulta Beauty
Ulta Beauty is the largest beauty retailer in the United States and the
premier beauty destination for cosmetics, fragrance, skin, hair care
products and salon services. Since opening its first store in 1990, Ulta
Beauty has grown to become the top national retailer providing All
Things Beauty. All in One Place.™ The Company offers more than 20,000
products from approximately 500 well-established and emerging beauty
brands across all categories and price points, including Ulta Beauty’s
own private label. Ulta Beauty also offers a full-service salon in every
store featuring hair, skin and brow services. Ulta Beauty is recognized
for its commitment to personalized service, fun and inviting stores and
its industry-leading Ultamate Rewards loyalty program. As of
February 3, 2018, Ulta Beauty operates 1,074 retail stores across 48
states and the District of Columbia and also distributes its products
through its website, which includes a collection of tips, tutorials and
social content. For more information, visit www.ulta.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which reflect our current views with
respect to, among other things, future events and financial performance.
You can identify these forward-looking statements by the use of
forward-looking words such as “outlook,” “believes,” “expects,” “plans,”
“estimates,” “targets,” “strategies” or other comparable words. Any
forward-looking statements contained in this press release are based
upon our historical performance and on current plans, estimates and
expectations. The inclusion of this forward-looking information should
not be regarded as a representation by us or any other person that the
future plans, estimates, targets, strategies or expectations
contemplated by us will be achieved. Such forward-looking statements are
subject to various risks and uncertainties, which include, without
limitation: the impact of weakness in the economy; changes in the
overall level of consumer spending; the possibility that we may be
unable to compete effectively in our highly competitive markets; the
possibility that cybersecurity breaches and other disruptions could
compromise our information or result in the unauthorized disclosure of
confidential information; weather conditions that could negatively
impact sales; our ability to gauge beauty trends and react to changing
consumer preferences in a timely manner; our ability to attract and
retain key executive personnel; the possibility that the capacity of our
distribution and order fulfillment infrastructure and the performance of
our newly opened and to be opened distribution centers may not be
adequate to support our recent growth and expected future growth plans;
our ability to sustain our growth plans and successfully implement our
long-range strategic and financial plan; the possibility that our
continued opening of new stores could strain our resources and have a
material adverse effect on our business and financial performance; the
possibility of material disruptions to our information systems; changes
in the wholesale cost of our products; the possibility that new store
openings and existing locations may be impacted by developer or
co-tenant issues; customer acceptance of our rewards program and
technological and marketing initiatives; our ability to successfully
execute our common stock repurchase program or implement future common
stock repurchase programs; and other risk factors detailed in our public
filings with the Securities and Exchange Commission (the “SEC”),
including risk factors contained in our Annual Report on Form 10-K for
the fiscal year ended January 28, 2017, as such may be amended or
supplemented in our subsequently filed Quarterly Reports on Form 10-Q.
Our filings with the SEC are available at www.sec.gov.
Except to the extent required by the federal securities laws, the
Company does not undertake to publicly update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1
|
|
Ulta Beauty, Inc.
|
|
Consolidated Statements of Income
|
|
(In thousands, except per share data)
|
|
|
|
|
|
14 Weeks Ended
|
|
13 Weeks Ended
|
|
|
|
February 3,
|
|
January 28,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net sales
|
|
$
|
1,937,592
|
|
|
100.0
|
%
|
|
$
|
1,580,574
|
|
|
100.0
|
%
|
|
Cost of sales
|
|
|
1,279,245
|
|
|
66.0
|
%
|
|
|
1,035,666
|
|
|
65.5
|
%
|
|
Gross profit
|
|
|
658,347
|
|
|
34.0
|
%
|
|
|
544,908
|
|
|
34.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
399,631
|
|
|
20.6
|
%
|
|
|
316,266
|
|
|
20.0
|
%
|
|
Pre-opening expenses
|
|
|
4,297
|
|
|
0.2
|
%
|
|
|
4,412
|
|
|
0.3
|
%
|
|
Operating income
|
|
|
254,419
|
|
|
13.1
|
%
|
|
|
224,230
|
|
|
14.2
|
%
|
|
Interest income, net
|
|
|
(359
|
)
|
|
0.0
|
%
|
|
|
(116
|
)
|
|
0.0
|
%
|
|
Income before income taxes
|
|
|
254,778
|
|
|
13.1
|
%
|
|
|
224,346
|
|
|
14.2
|
%
|
|
Income tax expense
|
|
|
46,605
|
|
|
2.4
|
%
|
|
|
84,128
|
|
|
5.3
|
%
|
|
Net income
|
|
$
|
208,173
|
|
|
10.7
|
%
|
|
$
|
140,218
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.42
|
|
|
|
|
$
|
2.25
|
|
|
|
|
Diluted
|
|
$
|
3.40
|
|
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
60,938
|
|
|
|
|
|
62,201
|
|
|
|
|
Diluted
|
|
|
61,293
|
|
|
|
|
|
62,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 2
|
|
Ulta Beauty, Inc.
|
|
Consolidated Statements of Income
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53 Weeks Ended
|
|
52 Weeks Ended
|
|
|
|
February 3,
|
|
January 28,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,884,506
|
|
|
100.0
|
%
|
|
$
|
4,854,737
|
|
|
100.0
|
%
|
|
Cost of sales
|
|
|
3,787,697
|
|
|
64.4
|
%
|
|
|
3,107,508
|
|
|
64.0
|
%
|
|
Gross profit
|
|
|
2,096,809
|
|
|
35.6
|
%
|
|
|
1,747,229
|
|
|
36.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
1,287,232
|
|
|
21.9
|
%
|
|
|
1,073,834
|
|
|
22.1
|
%
|
|
Pre-opening expenses
|
|
|
24,286
|
|
|
0.4
|
%
|
|
|
18,571
|
|
|
0.4
|
%
|
|
Operating income
|
|
|
785,291
|
|
|
13.3
|
%
|
|
|
654,824
|
|
|
13.5
|
%
|
|
Interest income, net
|
|
|
(1,568
|
)
|
|
0.0
|
%
|
|
|
(890
|
)
|
|
0.0
|
%
|
|
Income before income taxes
|
|
|
786,859
|
|
|
13.3
|
%
|
|
|
655,714
|
|
|
13.5
|
%
|
|
Income tax expense
|
|
|
231,625
|
|
|
3.9
|
%
|
|
|
245,954
|
|
|
5.1
|
%
|
|
Net income
|
|
$
|
555,234
|
|
|
9.4
|
%
|
|
$
|
409,760
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
9.02
|
|
|
|
|
$
|
6.55
|
|
|
|
|
Diluted
|
|
$
|
8.96
|
|
|
|
|
$
|
6.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
61,556
|
|
|
|
|
|
62,519
|
|
|
|
|
Diluted
|
|
|
61,975
|
|
|
|
|
|
62,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 3
|
|
Ulta Beauty, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands)
|
|
|
|
|
|
February 3,
|
|
January 28,
|
|
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
277,445
|
|
$
|
385,010
|
|
Short-term investments
|
|
|
120,000
|
|
|
30,000
|
|
Receivables, net
|
|
|
99,719
|
|
|
88,631
|
|
Merchandise inventories, net
|
|
|
1,096,424
|
|
|
943,975
|
|
Prepaid expenses and other current assets
|
|
|
98,666
|
|
|
88,621
|
|
Prepaid income taxes
|
|
|
1,489
|
|
|
—
|
|
Total current assets
|
|
|
1,693,743
|
|
|
1,536,237
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,189,453
|
|
|
1,004,358
|
|
Deferred compensation plan assets
|
|
|
16,827
|
|
|
11,283
|
|
Other long-term assets
|
|
|
8,664
|
|
|
—
|
|
Total assets
|
|
$
|
2,908,687
|
|
$
|
2,551,878
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
325,758
|
|
$
|
259,518
|
|
Accrued liabilities
|
|
|
302,307
|
|
|
260,854
|
|
Accrued income taxes
|
|
|
14,101
|
|
|
8,971
|
|
Total current liabilities
|
|
|
642,166
|
|
|
529,343
|
|
|
|
|
|
|
|
|
|
Deferred rent
|
|
|
407,916
|
|
|
366,191
|
|
Deferred income taxes
|
|
|
59,403
|
|
|
86,498
|
|
Other long-term liabilities
|
|
|
24,985
|
|
|
19,628
|
|
Total liabilities
|
|
|
1,134,470
|
|
|
1,001,660
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
1,774,217
|
|
|
1,550,218
|
|
Total liabilities and stockholders’ equity
|
|
$
|
2,908,687
|
|
$
|
2,551,878
|
|
|
|
|
|
|
|
|
|
Exhibit 4
|
|
Ulta Beauty, Inc.
|
|
Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
|
|
|
|
53 Weeks
|
|
52 Weeks
|
|
|
|
Ended
|
|
Ended
|
|
|
|
February 3,
|
|
January 28,
|
|
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
555,234
|
|
$
|
409,760
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
252,713
|
|
|
210,295
|
|
Deferred income taxes
|
|
|
(27,095)
|
|
|
26,971
|
|
Non-cash stock compensation charges
|
|
|
24,399
|
|
|
19,340
|
|
Excess tax benefits from stock-based compensation
|
|
|
—
|
|
|
(9,053)
|
|
Loss on disposal of property and equipment
|
|
|
7,518
|
|
|
9,140
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
Receivables
|
|
|
(11,088)
|
|
|
(23,639)
|
|
Merchandise inventories
|
|
|
(152,449)
|
|
|
(182,182)
|
|
Prepaid expenses and other current assets
|
|
|
(10,045)
|
|
|
(16,073)
|
|
Income taxes
|
|
|
3,641
|
|
|
5,322
|
|
Accounts payable
|
|
|
66,240
|
|
|
63,344
|
|
Accrued liabilities
|
|
|
36,891
|
|
|
71,057
|
|
Deferred rent
|
|
|
41,725
|
|
|
44,402
|
|
Other assets and liabilities
|
|
|
(9,484)
|
|
|
5,701
|
|
Net cash provided by operating activities
|
|
|
778,200
|
|
|
634,385
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Purchases of short-term investments
|
|
|
(330,000)
|
|
|
(90,000)
|
|
Proceeds from short-term investments
|
|
|
240,000
|
|
|
190,000
|
|
Purchases of property and equipment
|
|
|
(440,714)
|
|
|
(373,447)
|
|
Net cash used in investing activities
|
|
|
(530,714)
|
|
|
(273,447)
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Repurchase of common shares
|
|
|
(367,581)
|
|
|
(344,275)
|
|
Stock options exercised
|
|
|
16,190
|
|
|
16,293
|
|
Purchase of treasury shares
|
|
|
(4,243)
|
|
|
(2,839)
|
|
Excess tax benefits from stock-based compensation
|
|
|
—
|
|
|
9,053
|
|
Debt issuance costs
|
|
|
583
|
|
|
—
|
|
Net cash used in financing activities
|
|
|
(355,051)
|
|
|
(321,768)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(107,565)
|
|
|
39,170
|
|
Cash and cash equivalents at beginning of year
|
|
|
385,010
|
|
|
345,840
|
|
Cash and cash equivalents at end of year
|
|
$
|
277,445
|
|
$
|
385,010
|
|
|
|
|
|
|
|
|
|
Exhibit 5
|
|
2017 Store Expansion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stores open
|
|
|
Number of stores
|
|
|
Number of stores
|
|
|
Total stores
|
|
|
|
at beginning of the
|
|
|
opened during the
|
|
|
closed during the
|
|
|
open at
|
|
Fiscal 2017
|
|
quarter
|
|
|
quarter
|
|
|
quarter
|
|
|
end of the quarter
|
|
1st Quarter
|
|
974
|
|
|
18
|
|
|
2
|
|
|
990
|
|
2nd Quarter
|
|
990
|
|
|
20
|
|
|
0
|
|
|
1,010
|
|
3rd Quarter
|
|
1,010
|
|
|
48
|
|
|
0
|
|
|
1,058
|
|
4th Quarter
|
|
1,058
|
|
|
16
|
|
|
0
|
|
|
1,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross square feet for
|
|
|
|
|
|
|
|
|
|
Total gross square
|
|
|
stores opened or
|
|
|
Gross square feet for
|
|
|
Total gross square
|
|
|
|
feet at beginning of
|
|
|
expanded during the
|
|
|
stores closed
|
|
|
feet at end of the
|
|
Fiscal 2017
|
|
the quarter
|
|
|
quarter
|
|
|
during the quarter
|
|
|
quarter
|
|
1st Quarter
|
|
10,271,184
|
|
|
184,833
|
|
|
22,832
|
|
|
10,433,185
|
|
2nd Quarter
|
|
10,433,185
|
|
|
198,289
|
|
|
0
|
|
|
10,631,474
|
|
3rd Quarter
|
|
10,631,474
|
|
|
509,345
|
|
|
0
|
|
|
11,140,819
|
|
4th Quarter
|
|
11,140,819
|
|
|
160,101
|
|
|
0
|
|
|
11,300,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180315006386/en/
Source: Ulta Beauty, Inc.