Net Sales Increased 16.2%
Comparable Sales Increased 7.8%
Diluted EPS Increased 28.2% to $2.18
Company Reiterates FY 2018 Guidance for Diluted EPS Growth in the Low
Twenties Percentage Range
BOLINGBROOK, Ill.--(BUSINESS WIRE)--
Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for
the thirteen week period (“Third Quarter”) and thirty-nine week period
(“First Nine Months”) ended November 3, 2018, which compares to the same
periods ended October 28, 2017.
“Ulta Beauty’s strong performance in the third quarter reflects
continued market share gains across all major categories, acceleration
in our overall comp driven by healthy traffic, excellent new store
productivity, and robust e-commerce growth,” said Mary Dillon, Chief
Executive Officer.
Recent Accounting Pronouncement – Revenue Recognition
On February 4, 2018, the Company adopted Accounting Standards
Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC
606). The Company adopted the new revenue standard using the modified
retrospective transition method applied to all contracts with the
cumulative effect recorded to the opening balance of retaining earnings
as of the date of adoption. The comparative information has not been
restated and continues to be reported under accounting standards in
effect for those periods.
The adoption of the new revenue standard increased revenue by $10.5
million and $34.0 million for the 13 weeks and 39 weeks ended November
3, 2018, respectively. This is due to income from our credit card
program and gift card breakage now being included in net sales, as well
as e-commerce revenue now being recognized upon shipment, versus the
previous accounting treatment that was based on delivery of merchandise
to the guest. These items are partially offset by the value of points
earned in our loyalty program now reducing net sales. Due to the
adoption of ASC 606, for both the 13 weeks and 39 weeks ended November
3, 2018, gross profit margin increased by 50 basis points, while
selling, general and administrative expenses deleveraged by 70 basis
points. This resulted in a net impact to operating income margin of 20
basis points of deleverage for both the 13 weeks and 39 weeks ended
November 3, 2018. Additional information about the impact of the
adoption of ASC 606 can be found in our quarterly report on Form 10-Q
available at http://ir.ultabeauty.com.
For the Third Quarter of Fiscal 2018
-
Net sales increased 16.2% to $1,560.0 million compared to $1,342.2
million in the third quarter of fiscal 2017;
-
Comparable sales (sales for stores open at least 14 months and
e-commerce sales) increased 7.8% compared to an increase of 10.3% in
the third quarter of fiscal 2017. The 7.8% comparable sales increase
was driven by 5.3% transaction growth and 2.5% growth in average
ticket;
-
Retail comparable sales increased 4.4%, including salon comparable
sales growth of 3.5%;
-
E-commerce sales increased 42.5% to $170.7 million compared to $119.8
million in the third quarter of fiscal 2017, representing 340 basis
points of the total Company comparable sales increase of 7.8%;
-
Salon sales increased 10.7% to $74.0 million compared to $66.9 million
in the third quarter of fiscal 2017;
-
Gross profit as a percentage of net sales remained flat at 36.7%
compared to the third quarter of fiscal 2017, due to category and
channel mix shifts and investments in our salon services and supply
chain operations, fully offset by leverage in fixed store costs and
the impact of new revenue recognition accounting;
-
Selling, general and administrative (SG&A) expenses as a percentage of
net sales increased 140 basis points to 25.3% compared to 23.9% in the
third quarter of fiscal 2017, due to deleverage from investments in
store labor to support growth initiatives, deleverage in marketing
expenses, and the impact of new revenue recognition accounting,
partially offset by leverage in corporate overhead;
-
Pre-opening expenses decreased to $7.6 million compared to $9.7
million in the third quarter of fiscal 2017. Real estate activity in
the third quarter of fiscal 2018 included 42 new stores, four
remodels, and one relocation, compared to 48 new stores, five
remodels, and two relocations in the third quarter of fiscal 2017;
-
Operating income increased 4.0% to $169.2 million, or 10.8% of net
sales, compared to $162.7 million, or 12.1% of net sales, in the third
quarter of fiscal 2017;
-
Tax rate decreased to 23.1% compared to 35.8% in the third quarter of
fiscal 2017. The decrease was primarily due to tax reform;
-
Net income increased 25.3% to $131.2 million compared to $104.6
million in the third quarter of fiscal 2017; and
-
Diluted earnings per share increased 28.2% to $2.18, including a $0.02
benefit due to income tax accounting for share-based compensation,
compared to $1.70 in the third quarter of fiscal 2017, which included
a $0.04 benefit due to income tax accounting for share-based
compensation.
For the First Nine Months
-
Net sales increased 16.3% to $4,591.9 million compared to $3,946.9
million in the first nine months of fiscal 2017;
-
Comparable sales increased 7.5% compared to an increase of 12.1% in
the first nine months of fiscal 2017. The 7.5% comparable sales
increase was driven by 4.5% transaction growth and 3.0% growth in
average ticket;
-
Retail comparable sales increased 4.3%, including salon comparable
sales growth of 2.8%;
-
E-commerce sales increased 42.9% to $457.9 million compared to $320.4
million in the first nine months of fiscal 2017, representing 320
basis points of the total company comparable sales increase of 7.5%;
-
Salon sales increased 9.8% to $223.7 million compared to $203.7
million in the first nine months of fiscal 2017;
-
Gross profit as a percentage of net sales decreased 10 basis points to
36.3% compared to 36.4% in the first nine months of fiscal 2017, due
to category and channel mix shifts and investments in our salon
services and supply chain operations, partially offset by leverage in
fixed store costs and the impact of new revenue recognition accounting;
-
SG&A expenses as a percentage of net sales increased 100 basis points
to 23.5% compared to 22.5% in the first nine months of fiscal 2017,
due to deleverage from investments in store labor to support growth
initiatives, deleverage in marketing expenses, and the impact of new
revenue recognition accounting, partially offset by leverage in
corporate overhead;
-
Pre-opening expenses decreased to $17.4 million compared to $20.0
million in the first nine months of 2017. Real estate activity in the
first nine months of 2018 included 95 new stores, 13 remodels, and two
relocations, compared to 86 new stores, 10 remodels, and five
relocations in the first nine months of fiscal 2017;
-
Operating income increased 7.9% to $572.9 million, or 12.5% of net
sales, compared to $530.9 million, or 13.5% of net sales, in the first
nine months of fiscal 2017;
-
Tax rate decreased to 23.0% compared to 34.8% in the first nine months
of fiscal 2017. The decrease was primarily due to tax reform;
-
Net income increased 27.9% to $443.9 million compared to $347.1
million in the first nine months of fiscal 2017; and
-
Diluted earnings per share increased 31.7% to $7.35, including a $0.09
benefit due to income tax accounting for share-based compensation,
compared to $5.58 in the first nine months of fiscal 2017, which
included a $0.20 benefit due to income tax accounting for share-based
compensation.
Balance Sheet
Merchandise inventories at the end of the third quarter of fiscal 2018
totaled $1,484.6 million compared to $1,349.7 million at the end of the
third quarter of fiscal 2017, representing an increase of $134.9
million. The increase in total inventory was driven by 105 net new
stores and the opening of the Company’s distribution center in Fresno,
California, partially offset by inventory productivity benefits from
supply chain investments in new systems and merchandise planning tools.
Average inventory per store was flat compared to the third quarter of
fiscal 2017.
The Company ended the third quarter of fiscal 2018 with $296.9 million
in cash.
Share Repurchase Program
During the third quarter of fiscal 2018, the Company repurchased 451,424
shares of its common stock at a cost of $119.0 million. Year to date
fiscal 2018, the Company has repurchased 1,582,118 shares at a cost of
$379.4 million. As of November 3, 2018, $282.8 million remained
available under the $625.0 million share repurchase program announced in
March 2018.
Store Expansion
During the third quarter of fiscal 2018, the Company opened 42 stores
located in Ann Arbor, MI; Ashland, KY; Avondale, AZ; Belton, MO;
Calabasas, CA; Capital Heights, MD; Chester, VA; Concord, NC;
Cookeville, TN; Dania Beach, FL; Daytona Beach, FL; Derby, KS; Evans,
GA; Fort Walton Beach, FL; Homestead, FL; Jacksonville, FL; Kailua, HI;
Kansas City, MO; Kirkland, WA; League City, TX; Louisville, KY;
Maryville, TN; Monrovia, CA; Morgan Hill, CA; North Brunswick, NJ;
Northbrook, IL; Orlando, FL; Oxford, AL; Pearl City, HI; Pleasant Hill,
CA; Rialto, CA; Richmond, KY; San Diego, CA (2); Searcy, AR; Sierra
Vista, AZ; Stillwater, MN; Trumbull, CT; Vienna, WV; Westlake, OH;
Westminster, MD; and Williston, VT. In addition, the Company closed
three stores. The Company ended the third quarter of fiscal 2018 with
1,163 stores and square footage of 12,221,878, representing a 9.7%
increase in square footage compared to the third quarter of fiscal 2017.
Outlook
For the fourth quarter of fiscal 2018, the Company expects net sales in
the range of $2,085.0 million to $2,103.0 million, compared to actual
net sales of $1,937.6 million in the fourth quarter of fiscal 2017,
which included $108.8 million of sales for the 53rd week. Comparable
sales for the fourth quarter of fiscal 2018, including e-commerce sales,
are expected to increase 7% to 8%. The Company reported a comparable
sales increase of 8.8% in the fourth quarter of fiscal 2017.
Diluted earnings per share for the fourth quarter of fiscal 2018 is
estimated to be in the range of $3.50 to $3.55. This compares to diluted
earnings per share for the fourth quarter of fiscal 2017 of $3.40, which
included a $0.65 benefit related to tax reform and a $0.14 impact
related to the 53rd week.
The Company is maintaining its previously announced fiscal 2018
guidance. The Company plans to:
-
increase total sales in the low teens percentage range;
-
achieve comparable sales growth of approximately 7% to 8%;
-
grow e-commerce sales in the 40% range;
-
open approximately 100 new stores and execute 15 remodel or relocation
projects;
-
deleverage operating profit margin rate in the range of 50 to 70 basis
points;
-
deliver diluted earnings per share growth in the low twenties
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.
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 third quarter of fiscal 2018 results is
scheduled for today, December 6, 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 December
20, 2018 and can be accessed by dialing (844) 512-2921 and entering
conference ID number 13685175.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta
Beauty is the largest U.S. beauty retailer and the premier beauty
destination for cosmetics, fragrance, skin care products, hair care
products and salon services. In 1990, the Company reinvented the beauty
retail experience by offering a new way to shop for beauty – bringing
together all things beauty, all in one place. Today, Ulta Beauty has
grown to become the top national retailer offering the complete beauty
experience.
Ulta Beauty brings possibilities to life through the power of beauty
each and every day in our stores and online with more than 25,000
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, brow, and make-up services.
Ulta Beauty is recognized for its commitment to personalized service,
fun and inviting stores and our industry-leading Ultamate Rewards
loyalty program. As of November 3, 2018, Ulta Beauty operates 1,163
retail stores across 50 states 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: changes in the overall level of consumer spending and
volatility in the economy; 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; 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 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; natural
disasters that could negatively impact sales; our ability to
successfully execute our common stock repurchase program or implement
future common stock repurchase programs; the ability to execute our
Efficiencies for Growth cost optimization program; 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 February 3, 2018, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
November 3,
|
|
October 28,
|
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net sales
|
|
$
|
1,560,011
|
|
|
100.0
|
%
|
|
$
|
1,342,181
|
|
|
100.0
|
%
|
|
Cost of sales
|
|
|
987,733
|
|
|
63.3
|
%
|
|
|
849,053
|
|
|
63.3
|
%
|
|
Gross profit
|
|
|
572,278
|
|
|
36.7
|
%
|
|
|
493,128
|
|
|
36.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
395,453
|
|
|
25.3
|
%
|
|
|
320,729
|
|
|
23.9
|
%
|
|
Pre-opening expenses
|
|
|
7,612
|
|
|
0.5
|
%
|
|
|
9,732
|
|
|
0.7
|
%
|
|
Operating income
|
|
|
169,213
|
|
|
10.8
|
%
|
|
|
162,667
|
|
|
12.1
|
%
|
|
Interest income, net
|
|
|
(1,318
|
)
|
|
0.1
|
%
|
|
|
(316
|
)
|
|
0.0
|
%
|
|
Income before income taxes
|
|
|
170,531
|
|
|
10.9
|
%
|
|
|
162,983
|
|
|
12.1
|
%
|
|
Income tax expense
|
|
|
39,365
|
|
|
2.5
|
%
|
|
|
58,338
|
|
|
4.3
|
%
|
|
Net income
|
|
$
|
131,166
|
|
|
8.4
|
%
|
|
$
|
104,645
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.20
|
|
|
|
|
$
|
1.71
|
|
|
|
|
Diluted
|
|
$
|
2.18
|
|
|
|
|
$
|
1.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,724
|
|
|
|
|
|
61,299
|
|
|
|
|
Diluted
|
|
|
60,062
|
|
|
|
|
|
61,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 2
|
|
Ulta Beauty, Inc.
|
|
Consolidated Statements of Income
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39 Weeks Ended
|
|
|
November 3,
|
|
October 28,
|
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net sales
|
|
$
|
4,591,899
|
|
|
100.0
|
%
|
|
$
|
3,946,914
|
|
|
100.0
|
%
|
|
Cost of sales
|
|
|
2,923,447
|
|
|
63.7
|
%
|
|
|
2,508,452
|
|
|
63.6
|
%
|
|
Gross profit
|
|
|
1,668,452
|
|
|
36.3
|
%
|
|
|
1,438,462
|
|
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
1,078,219
|
|
|
23.5
|
%
|
|
|
887,601
|
|
|
22.5
|
%
|
|
Pre-opening expenses
|
|
|
17,363
|
|
|
0.4
|
%
|
|
|
19,989
|
|
|
0.5
|
%
|
|
Operating income
|
|
|
572,870
|
|
|
12.5
|
%
|
|
|
530,872
|
|
|
13.5
|
%
|
|
Interest income, net
|
|
|
(3,786
|
)
|
|
0.1
|
%
|
|
|
(1,209
|
)
|
|
0.0
|
%
|
|
Income before income taxes
|
|
|
576,656
|
|
|
12.6
|
%
|
|
|
532,081
|
|
|
13.5
|
%
|
|
Income tax expense
|
|
|
132,771
|
|
|
2.9
|
%
|
|
|
185,020
|
|
|
4.7
|
%
|
|
Net income
|
|
$
|
443,885
|
|
|
9.7
|
%
|
|
$
|
347,061
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
7.38
|
|
|
|
|
$
|
5.62
|
|
|
|
|
Diluted
|
|
$
|
7.35
|
|
|
|
|
$
|
5.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
60,135
|
|
|
|
|
|
61,778
|
|
|
|
|
Diluted
|
|
|
60,432
|
|
|
|
|
|
62,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 3
|
|
Ulta Beauty, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
November 3,
|
|
February 3,
|
|
October 28,
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
296,944
|
|
$
|
277,445
|
|
$
|
46,787
|
|
Short-term investments
|
|
|
—
|
|
|
120,000
|
|
|
60,000
|
|
Receivables, net
|
|
|
102,353
|
|
|
99,719
|
|
|
82,934
|
|
Merchandise inventories, net
|
|
|
1,484,565
|
|
|
1,096,424
|
|
|
1,349,714
|
|
Prepaid expenses and other current assets
|
|
|
119,817
|
|
|
98,666
|
|
|
101,403
|
|
Prepaid income taxes
|
|
|
22,294
|
|
|
1,489
|
|
|
5,450
|
|
Total current assets
|
|
|
2,025,973
|
|
|
1,693,743
|
|
|
1,646,288
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,257,775
|
|
|
1,189,453
|
|
|
1,172,682
|
|
Goodwill
|
|
|
9,084
|
|
|
—
|
|
|
—
|
|
Other intangible assets
|
|
|
6,985
|
|
|
—
|
|
|
—
|
|
Deferred compensation plan assets
|
|
|
21,397
|
|
|
16,827
|
|
|
15,903
|
|
Other long-term assets
|
|
|
11,477
|
|
|
8,664
|
|
|
—
|
|
Total assets
|
|
$
|
3,332,691
|
|
$
|
2,908,687
|
|
$
|
2,834,873
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
574,480
|
|
$
|
325,758
|
|
$
|
447,293
|
|
Accrued liabilities
|
|
|
409,603
|
|
|
302,307
|
|
|
266,435
|
|
Accrued income taxes
|
|
|
—
|
|
|
14,101
|
|
|
984
|
|
Total current liabilities
|
|
|
984,083
|
|
|
642,166
|
|
|
714,712
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent
|
|
|
432,052
|
|
|
407,916
|
|
|
400,477
|
|
Deferred income taxes
|
|
|
50,045
|
|
|
59,403
|
|
|
78,647
|
|
Other long-term liabilities
|
|
|
30,775
|
|
|
24,985
|
|
|
24,986
|
|
Total liabilities
|
|
|
1,496,955
|
|
|
1,134,470
|
|
|
1,218,822
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
1,835,736
|
|
|
1,774,217
|
|
|
1,616,051
|
|
Total liabilities and stockholders’ equity
|
|
$
|
3,332,691
|
|
$
|
2,908,687
|
|
$
|
2,834,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 4
|
|
Ulta Beauty, Inc.
|
|
Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
39 Weeks Ended
|
|
|
November 3,
|
|
October 28,
|
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
Operating activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
443,885
|
|
|
$
|
347,061
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
207,652
|
|
|
|
187,710
|
|
|
Deferred income taxes
|
|
|
(408
|
)
|
|
|
(7,851
|
)
|
|
Non-cash stock compensation charges
|
|
|
20,308
|
|
|
|
17,898
|
|
|
Loss on disposal of property and equipment
|
|
|
1,339
|
|
|
|
5,707
|
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
Receivables
|
|
|
(2,594
|
)
|
|
|
5,697
|
|
|
Merchandise inventories
|
|
|
(388,141
|
)
|
|
|
(405,739
|
)
|
|
Prepaid expenses and other current assets
|
|
|
(19,603
|
)
|
|
|
(12,782
|
)
|
|
Income taxes
|
|
|
(34,906
|
)
|
|
|
(13,437
|
)
|
|
Accounts payable
|
|
|
248,719
|
|
|
|
187,775
|
|
|
Accrued liabilities
|
|
|
44,114
|
|
|
|
(18,721
|
)
|
|
Deferred rent
|
|
|
24,136
|
|
|
|
34,286
|
|
|
Other assets and liabilities
|
|
|
(2,287
|
)
|
|
|
1,489
|
|
|
Net cash provided by operating activities
|
|
|
542,214
|
|
|
|
329,093
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Purchases of short-term investments
|
|
|
(386,193
|
)
|
|
|
(240,000
|
)
|
|
Proceeds from short-term investments
|
|
|
506,193
|
|
|
|
210,000
|
|
|
Purchases of property and equipment
|
|
|
(256,415
|
)
|
|
|
(337,639
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
(13,606
|
)
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
|
(150,021
|
)
|
|
|
(367,639
|
)
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Repurchase of common shares
|
|
|
(379,423
|
)
|
|
|
(309,767
|
)
|
|
Stock options exercised
|
|
|
12,668
|
|
|
|
14,849
|
|
|
Purchase of treasury shares
|
|
|
(5,939
|
)
|
|
|
(4,208
|
)
|
|
Debt issuance costs
|
|
|
—
|
|
|
|
(551
|
)
|
|
Net cash used in financing activities
|
|
|
(372,694
|
)
|
|
|
(299,677
|
)
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
19,499
|
|
|
|
(338,223
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
277,445
|
|
|
|
385,010
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
296,944
|
|
|
$
|
46,787
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 5
|
|
2018 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 2018
|
|
quarter
|
|
quarter
|
|
quarter
|
|
end of the quarter
|
|
1st Quarter
|
|
1,074
|
|
34
|
|
1
|
|
1,107
|
|
2nd Quarter
|
|
1,107
|
|
19
|
|
2
|
|
1,124
|
|
3rd Quarter
|
|
1,124
|
|
42
|
|
3
|
|
1,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2018
|
|
the quarter
|
|
quarter
|
|
during the quarter
|
|
quarter
|
|
1st Quarter
|
|
11,300,920
|
|
355,482
|
|
10,607
|
|
11,645,795
|
|
2nd Quarter
|
|
11,645,795
|
|
198,852
|
|
20,638
|
|
11,824,009
|
|
3rd Quarter
|
|
11,824,009
|
|
432,627
|
|
34,758
|
|
12,221,878
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 6
|
|
Ulta Beauty, Inc.
|
|
Pro-forma Effect of ASC 606
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
The Company adopted ASC 606 and the related amendments as of
February 4, 2018 using the modified retrospective transition
method applied to all contracts. The comparative information has
not been restated and continues to be reported under accounting
standards in effect for those periods. The following table
presents selected as-reported financial results and the pro-forma
effect of ASC 606 as if the recognition and presentation guidance
in the accounting standard had been applied in fiscal 2017. The
fiscal 2017 pro-forma financial information included in the table
below is presented for information purposes only.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 3, 2018
|
|
|
|
|
|
|
|
|
Balances with
|
|
|
|
|
|
|
|
|
ASC 606
|
|
Adoption of ASC
|
|
|
|
(Dollars in thousands)
|
|
As Reported
|
|
% of Sales
|
|
Adjustments
|
|
606
|
|
% of Sales
|
|
Consolidated Statement of Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,884,506
|
|
100.0
|
%
|
|
$
|
31,197
|
|
|
$
|
5,915,703
|
|
100.0
|
%
|
|
Cost of sales
|
|
|
3,787,697
|
|
64.4
|
%
|
|
|
(5,746
|
)
|
|
|
3,781,951
|
|
63.9
|
%
|
|
Gross profit
|
|
|
2,096,809
|
|
35.6
|
%
|
|
|
36,944
|
|
|
|
2,133,753
|
|
36.1
|
%
|
|
Selling, general and administrative expenses
|
|
|
1,287,232
|
|
21.9
|
%
|
|
|
40,730
|
|
|
|
1,327,962
|
|
22.4
|
%
|
|
Operating income
|
|
|
785,291
|
|
13.3
|
%
|
|
|
(3,786
|
)
|
|
|
781,505
|
|
13.2
|
%
|
|
Income tax expense
|
|
|
231,625
|
|
3.9
|
%
|
|
|
(1,707
|
)
|
|
|
229,918
|
|
3.9
|
%
|
|
Net income
|
|
|
555,234
|
|
9.4
|
%
|
|
|
(2,079
|
)
|
|
|
553,155
|
|
9.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181206005944/en/
Company Contacts:
Scott Settersten
Chief Financial Officer
(630)
410-4807
Laurel Lefebvre
Vice President, Investor Relations
(630)
410-5230
Karen May
Director, Public Relations
(630) 410-5457
Source: Ulta Beauty, Inc.