ULTA
📈 Ulta Beauty reported positive results with increased comparable sales and gross profit, showing resilience in consumer spending.
💰 The company repurchased 62,000 shares at a cost of $250 million during the quarter, and $1 billion during fiscal 2024.
📊 Ulta Beauty is trading at 15 times earnings, with a modest revenue growth projection of 1-1.5%.
✅ Ulta Beauty used all of its free cash flow for share repurchases.
@bernardodegarcia:
“Let’s head straight to the quarterly results of Ulta Beauty. It is a beauty, it is going to be something very interesting. Let’s see, let’s see what ends up falling. But well, what we were commenting, and what I was saying here with all the reason, citizens, and the world. Today there has been no reason why the markets are falling. Embrace volatility, go shopping. Realize that it is impossible to buy the bottom and it is impossible to sell the top. Ulta is up 6%. Sales comp up 1.5%. Okay, it’s good, it’s not bad. Gross profit 38, up. Wow, very good. SGNA down, great. Operating income up, very good, very good. New openings. The team had a stronger-than-expected holiday season. I am optimistic. We have the elements. 2025 will be a pivotal year, the impact, momentum, growth, fifth quarter comp, fifth quarter fiscal, sales fell, but comps rose, which in the end is what matters. Comps, gross profit, we have already seen all this, we have already seen this too. During the quarter, the fiscal company repurchased 62,000 shares at a cost of $250 million. Ulta is trading at around $14 billion, not too much. During fiscal 2024, we accompanied a cost of $1 billion. You bought 6%. In early February, we have so much left. In the last quarter, we opened new stores, remodeled, closed one. During this, we opened 66, relocated two, remodeled 41, and so on. Sales, comps are not going to move, okay, but perhaps the market was expecting something much worse. Diluted earnings per share between 22.5. At 22.5, you are now at 335 divided by 22.5. You are at 15 times, you are very good. What happens? Of course, if a company that is trading at 15 times with a very anemic revenue growth of 11.3 to 11.5, 11.6, there we have it. Let’s see what they did with the cash. Capex 374, $6 billion in free cash flow, ex-depreciation, stock compensation 42. Wow, how low, I like it. $1 billion in free cash flow, share repurchases, which they used to repurchase shares, all the free cash flow, boom, for share repurchases. Hint, I don’t want to know anymore, I like it. I would also like to see the management team buying.”
Watch the exact part of the video where Bernardo talks about Ulta Beauty here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Ulta Beauty (ULTA) at the following link. ULTA stock.
