1Semana·

Ulta Beauty Q1 Earnings Highlights

$ULTA (+0,16%)

Revenue: USD 2.85 billion (estimated USD 2.79 billion) ✅ +4.5% year-on-year
Earnings per share: USD 6.70 (estimated USD 5.75) ✅
Comparable sales: +2.9 % (compared to +1.6 % year-on-year)
Gross margin: 39.1 % (compared to 39.2 % in the previous year)
Inventory: USD 2.1 billion (+11.3% year-on-year)

Guidelines for the 2025 financial year:

Sales: USD 11.5-11.7 bn (previously: USD 11.5-11.6 bn | estimate USD 11.58 bn)
Earnings per share: USD 22.65-23.20 (previously: USD 22.50-22.90 | estimate USD 24.07)
Comparable sales: 0 % to +1.5 % (previously: 0 % to +1 %)
Operating margin: 11.7-11.8% (no change)
Share buybacks: ~USD 900m (no change)
New stores: ~60 | Conversions/relocations: 40-45
Capital expenditure: USD 425-500m
Tax rate: ~24.5
Depreciation/amortization: USD 290-300m

Other key figures for the first quarter:

Operating profit margin: 14.1 % (compared to 14.7 % in the previous year)
Net income: USD 305.1 million (compared to USD 313.1 million in the previous year)
Selling and administrative expenses: USD 710.6 million (increase of 6.7% compared to the previous year)
Store space: 6 new stores opened; now 1,451 in total
Share buybacks: USD 358.7 million repurchased in the 1st quarter
Cash and cash equivalents: USD 454.6 million

Management:

CEO: "The start to the 2025 financial year is encouraging thanks to the success of our Ulta Beauty Unleashed program. However, the outlook reflects the uncertainty regarding consumer demand. We remain focused and flexible."

$ELF (+2,38%)
$EL (+1,7%)
$OR (+0,41%)

9 Comentários

Tenbagger2024@Tenbagger2024

1Semana

Thank you my dear,
Not every Buffet strategy needs to be understood.
And not every investment decision has to be the Holy Grail.
So don't let yourself be controlled too much by others and stay true to yourself.

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BamBamInvest@BamBamInvest

1Semana

@Tenbagger2024 absolutely right, but I believe that both $ULTA and $ELF are a good long-term investment; if $ELF is up, $ULTA will also be up, as it also benefits from sales.

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Tenbagger2024@Tenbagger2024

1Semana

@BamBamInvest
I don't think going out at $NU was the smartest decision by Warren either.

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BamBamInvest@BamBamInvest

1Semana

@Tenbagger2024 yes, but $NU really has to deliver and the position wasn't really big. He just went risk off

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Tenbagger2024@Tenbagger2024

1Semana

@BamBamInvest
I think the multiples from NU are really good.
A PEG of less than 1.
Think with good news and numbers it should be similar to Elf.
And SoFi should also surprise

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BamBamInvest@BamBamInvest

1Semana

@Tenbagger2024 yes, assuming that they can continue to grow like this, that's why I'm more in favour of $SOFI and believe that there is more potential here, also due to the market capitalization. Everyone has to decide for themselves, but $NU certainly has potential ✌️

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Eric Messenger@Uncommon_Cents

I had my 5th grader pick her own portfolio, as her two older siblings did when they were young. One of Peter Lynch’s books was my inspiration. My kids chose Chipotle, Starbucks, and Apple; around 2012. I should’ve listened to them. Needless to say, I’ve let them manage their portfolios since they were around 15.

I had Mari, the current 5th grader, choose what companies she wants to own. I put em through my analysis, and if it’s a go, she gets the stock. Ulta Beauty, Google, and Meta were her first three choices. Ulta is up about 28% since she grabbed it.

And since I can’t get her biological parents to open a custodial account for her, we added Altria and Pepsi, because they spend so much of their income on cigarettes & pop.

5th graders have a knack & don’t overthink it. They just want to own great businesses 🤷‍♂️

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Eric Messenger@Uncommon_Cents

It passed my fundamentals with these numbers. Being an acceptable long-term investment for her portfolio.

Earnings & FCF yields around 5%, adjusted P/E 17.9, EV/EBITDA 12.4, FCF margin around 10%, CROIC 24%, 5 year average ROIC 25%, 5 year average ROE 49.2%, 5 year average ROA 18.3%, 5 year EPS CAGR 15.8%, 5 year revenue CAGR 8.8%.

Shares outstanding are decreasing over prior 5 years, book and tangible book value per share are increasing annually in most recent 4/5 years.

Their current valuation is 10-20% cheaper than their 5 year average across the board.

While profitability metrics are 40-400% better than peer average.

5 & 10 year growth rates of a dozen categories are 5-20%.

3/4 trusted sources say undervalued. Guur Focus gives Ulta a score of 98/100 GF score, modestly undervalued, and 5/5 stars. That’s rare on Guru Focis; they’re hard and pour over lots of unique data.

This data is all from Seeking Alpha, Simply Wall Street, Investing.com, AInvest, and Guru Focus. Four of those I’ve used successfully, the free version, for a decade. AInvest is a new one.

Wish I could share screenshots, would’ve been much easier.

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BamBamInvest@BamBamInvest

@Uncommon_Cents It's a great company, but I chose $ELF here because I see more growth. Especially for young people who have time, I would go for $ELF because they also dominate social media. But $ELF is in the $ULTA range anyway. What else you can look at here is $MC because they have Sephora and much more. It's basically $ULTA plus many more. And Not a US Company If you want to diversify more . ✌️

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