Company Quick10K Filing
Ulta Beauty
Price228.75 EPS12
Shares58 P/E19
MCap13,358 P/FCF24
Net Debt-209 EBIT900
TEV13,149 TEV/EBIT15
TTM 2019-11-02, in MM, except price, ratios
10-Q 2020-08-01 Filed 2020-08-27
10-Q 2020-05-02 Filed 2020-05-28
10-K 2020-02-01 Filed 2020-03-27
10-Q 2019-11-02 Filed 2019-12-05
10-Q 2019-08-03 Filed 2019-08-29
10-Q 2019-05-04 Filed 2019-05-30
10-K 2019-02-02 Filed 2019-04-02
10-Q 2018-11-03 Filed 2018-12-06
10-Q 2018-08-04 Filed 2018-08-30
10-Q 2018-05-05 Filed 2018-06-01
10-K 2018-02-03 Filed 2018-04-03
10-Q 2017-10-28 Filed 2017-11-30
10-Q 2017-07-29 Filed 2017-08-31
10-Q 2017-04-29 Filed 2017-06-01
10-K 2017-01-28 Filed 2017-03-28
10-Q 2016-10-29 Filed 2016-12-01
10-Q 2016-07-30 Filed 2016-08-25
10-Q 2016-04-30 Filed 2016-06-02
10-K 2016-01-30 Filed 2016-03-30
10-Q 2015-10-31 Filed 2015-12-03
10-Q 2015-08-01 Filed 2015-09-03
10-Q 2015-05-02 Filed 2015-06-04
10-K 2015-01-31 Filed 2015-04-01
10-Q 2014-11-01 Filed 2014-12-04
10-Q 2014-08-02 Filed 2014-09-11
10-Q 2014-05-03 Filed 2014-06-10
10-K 2014-02-01 Filed 2014-04-02
10-Q 2013-08-03 Filed 2013-09-12
10-Q 2013-05-04 Filed 2013-06-11
10-K 2013-02-02 Filed 2013-04-03
10-Q 2012-10-27 Filed 2012-11-29
10-Q 2012-07-28 Filed 2012-09-06
10-Q 2012-04-28 Filed 2012-06-05
10-K 2012-01-28 Filed 2012-03-28
10-Q 2011-10-29 Filed 2011-12-01
10-Q 2011-07-30 Filed 2011-09-08
10-Q 2011-04-30 Filed 2011-06-07
10-K 2011-01-29 Filed 2011-03-30
10-Q 2010-10-30 Filed 2010-12-02
10-Q 2010-07-31 Filed 2010-09-02
10-Q 2010-05-01 Filed 2010-06-03
10-K 2010-01-30 Filed 2010-03-31
8-K 2020-08-27 Earnings, Exhibits
8-K 2020-07-20 Regulation FD, Exhibits
8-K 2020-06-18
8-K 2020-06-03
8-K 2020-05-28
8-K 2020-05-07
8-K 2020-04-08
8-K 2020-04-02
8-K 2020-03-18
8-K 2020-03-17
8-K 2020-03-12
8-K 2020-03-11
8-K 2019-12-05
8-K 2019-11-27
8-K 2019-09-18
8-K 2019-08-29
8-K 2019-06-05
8-K 2019-05-30
8-K 2019-04-12
8-K 2019-03-15
8-K 2019-03-14
8-K 2018-12-06
8-K 2018-11-08
8-K 2018-09-22
8-K 2018-08-30
8-K 2018-06-06
8-K 2018-05-31
8-K 2018-03-15

ULTA 10Q Quarterly Report

Part I - Financial Information
Item 1.Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
EX-31.1 ulta-20200801xex31d1.htm
EX-31.2 ulta-20200801xex31d2.htm
EX-32 ulta-20200801xex32.htm

Ulta Beauty Earnings 2020-08-01

Balance SheetIncome StatementCash Flow
5.04.03.02.01.00.02012201420172020
Assets, Equity
2.21.81.30.90.40.02012201420172020
Rev, G Profit, Net Income
0.50.30.20.0-0.1-0.32012201420172020
Ops, Inv, Fin

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended August 1, 2020

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____________ to _____________

Commission File Number: 001-33764

ULTA BEAUTY, INC.

(Exact name of Registrant as specified in its charter)


incorporation or organization)


Identification No.)

Delaware

(State or other jurisdiction of
incorporation or organization)

38-4022268

(I.R.S. Employer
Identification No.)

1000 Remington Blvd., Suite 120

Bolingbrook, Illinois

(Address of principal executive offices)

60440

(Zip code)

Registrant’s telephone number, including area code: (630) 410-4800

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.01 per share

ULTA

The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer      Accelerated filer      Non-accelerated filer      Smaller reporting company       Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  No

The number of shares of the registrant’s common stock, par value $0.01 per share, outstanding as of August 24, 2020 was 56,323,104 shares.

Table of Contents

ULTA BEAUTY, INC.

TABLE OF CONTENTS

Part I - Financial Information

Item 1.    Financial Statements

Consolidated Balance Sheets

3

Consolidated Statements of Operations

4

Consolidated Statements of Comprehensive Income (Loss)

5

Consolidated Statements of Cash Flows

6

Consolidated Statements of Stockholders’ Equity

7

Notes to Consolidated Financial Statements

9

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

29

Item 4.    Controls and Procedures

30

Part II - Other Information

30

Item 1.    Legal Proceedings

30

Item 1A. Risk Factors

30

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

30

Item 3.    Defaults Upon Senior Securities

31

Item 4.    Mine Safety Disclosures

31

Item 5.    Other Information

31

Item 6.    Exhibits

32

SIGNATURES

33

2

Table of Contents

Part I - Financial Information

Item 1.Financial Statements

Ulta Beauty, Inc.

Consolidated Balance Sheets

August 1,

February 1,

August 3,

(In thousands, except per share data)

    

2020

    

2020

    

2019

Assets

(Unaudited)

(Unaudited)

Current assets:

Cash and cash equivalents

$

1,157,318

$

392,325

$

177,398

Short-term investments

110,000

150,000

Receivables, net

127,992

139,337

107,263

Merchandise inventories, net

1,368,543

1,293,701

1,315,999

Prepaid expenses and other current assets

102,713

103,567

131,171

Prepaid income taxes

42,622

16,387

38,769

Total current assets

2,799,188

2,055,317

1,920,600

Property and equipment, net

1,077,825

1,205,524

1,219,948

Operating lease assets

1,548,239

1,537,565

1,499,556

Goodwill

10,870

10,870

10,870

Other intangible assets, net

2,927

3,391

3,854

Deferred compensation plan assets

28,789

27,849

24,665

Other long-term assets

29,283

23,356

30,882

Total assets

$

5,497,121

$

4,863,872

$

4,710,375

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

398,011

$

414,009

$

450,117

Accrued liabilities

201,754

246,088

224,202

Deferred revenue

216,545

237,535

182,354

Current operating lease liabilities

245,019

239,629

208,261

Total current liabilities

1,061,329

1,137,261

1,064,934

Non-current operating lease liabilities

1,718,549

1,698,718

1,683,743

Long-term debt

800,000

Deferred income taxes

94,272

89,367

86,598

Other long-term liabilities

52,178

36,432

35,649

Total liabilities

3,726,328

2,961,778

2,870,924

Commitments and contingencies (Note 7)

Stockholders' equity:

Common stock, $0.01 par value, 400,000 shares authorized; 57,014, 57,285 and 58,485 shares issued; 56,323, 56,609 and 57,810 shares outstanding; at August 1, 2020 (unaudited), February 1, 2020, and August 3, 2019 (unaudited), respectively

570

573

585

Treasury stock-common, at cost

(37,513)

(34,448)

(34,180)

Additional paid-in capital

822,664

807,492

794,368

Retained earnings

985,042

1,128,477

1,078,678

Accumulated other comprehensive income

30

Total stockholders’ equity

1,770,793

1,902,094

1,839,451

Total liabilities and stockholders’ equity

$

5,497,121

$

4,863,872

$

4,710,375

See accompanying notes to consolidated financial statements.

3

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Operations

(Unaudited)

13 Weeks Ended

26 Weeks Ended

August 1,

August 3,

August 1,

August 3,

(In thousands, except per share data)

    

2020

2019

2020

2019

Net sales

$

1,228,009

$

1,666,607

$

2,401,219

$

3,409,636

Cost of sales

899,002

1,060,708

1,768,607

2,158,890

Gross profit

329,007

605,899

632,612

1,250,746

Selling, general and administrative expenses

271,587

392,843

652,499

795,976

Impairment charges, store closures and other costs

40,758

60,300

Pre-opening expenses

3,907

5,038

8,542

9,212

Operating income (loss)

12,755

208,018

(88,729)

445,558

Interest expense (income), net

2,617

(1,671)

3,889

(3,717)

Income (loss) before income taxes

10,138

209,689

(92,618)

449,275

Income tax expense (benefit)

2,086

48,431

(22,161)

95,796

Net income (loss)

$

8,052

$

161,258

$

(70,457)

$

353,479

Net income (loss) per common share:

Basic

$

0.14

$

2.77

$

(1.25)

$

6.05

Diluted

$

0.14

$

2.76

$

(1.25)

$

6.02

Weighted average common shares outstanding:

Basic

56,318

58,171

56,369

58,401

Diluted

56,497

58,446

56,369

58,718

See accompanying notes to consolidated financial statements.

4

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

13 Weeks Ended

26 Weeks Ended

August 1,

August 3,

August 1,

August 3,

(In thousands)

    

2020

    

2019

    

2020

    

2019

Net income (loss)

    

$

8,052

$

161,258

$

(70,457)

$

353,479

Other comprehensive income:

Foreign currency translation adjustments

105

30

Comprehensive income (loss)

$

8,157

$

161,258

$

(70,427)

$

353,479

See accompanying notes to consolidated financial statements.

5

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

26 Weeks Ended

August 1,

August 3,

(In thousands)

    

2020

    

2019

Operating activities

Net income (loss)

$

(70,457)

$

353,479

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

154,029

144,951

Non-cash lease expense

132,808

152,134

Impairment charges, store closures and other costs

59,997

Deferred income taxes

4,905

2,734

Stock-based compensation expense

14,595

12,766

Loss on disposal of property and equipment

2,273

3,215

Change in operating assets and liabilities:

Receivables

11,345

11,437

Merchandise inventories

(74,842)

(101,670)

Prepaid expenses and other current assets

854

(18,315)

Income taxes

(26,235)

(21,772)

Accounts payable

(18,486)

46,101

Accrued liabilities

(32,901)

(2,629)

Deferred revenue

(20,990)

(16,700)

Operating lease liabilities

(137,383)

(138,557)

Other assets and liabilities

16,477

20,162

Net cash provided by operating activities

15,989

447,336

Investing activities

Purchases of short-term investments

(245,000)

Proceeds from short-term investments

110,000

95,000

Capital expenditures

(77,090)

(151,213)

Acquisitions, net of cash acquired

(1,220)

Purchases of equity investments

(5,386)

(33,339)

Net cash provided by (used in) investing activities

26,304

(334,552)

Financing activities

Proceeds from long-term debt

800,000

Repurchase of common shares

(72,981)

(378,300)

Stock options exercised

577

42,935

Purchase of treasury shares

(3,065)

(9,272)

Debt issuance costs

(1,861)

Net cash provided by (used in) financing activities

722,670

(344,637)

Effect of exchange rate changes on cash and cash equivalents

30

Net increase (decrease) in cash and cash equivalents

764,993

(231,853)

Cash and cash equivalents at beginning of period

392,325

409,251

Cash and cash equivalents at end of period

$

1,157,318

$

177,398

Supplemental information

Cash paid for interest

$

3,132

$

Income taxes paid, net of refunds

    

2,287

97,024

Non-cash capital expenditures

19,176

43,269

See accompanying notes to consolidated financial statements.

6

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Stockholders’ Equity

(Unaudited)

Treasury -

Accumulated

Common Stock

Common Stock

Additional

Other

Total

Issued

Treasury

Paid-In

Retained

Comprehensive

Stockholders'

(In thousands)

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Earnings

    

Income (Loss)

    

Equity

Balance – February 1, 2020

57,285

$

573

(676)

$

(34,448)

$

807,492

$

1,128,477

$

$

1,902,094

Net loss

(78,509)

(78,509)

Stock-based compensation

6,182

6,182

Foreign currency translation adjustments

(75)

(75)

Stock options exercised and other awards

45

250

250

Purchase of treasury shares

(15)

(3,002)

(3,002)

Repurchase of common shares

(327)

(3)

(72,978)

(72,981)

Balance – May 2, 2020

57,003

$

570

(691)

$

(37,450)

$

813,924

$

976,990

$

(75)

$

1,753,959

Net income

8,052

8,052

Stock-based compensation

8,413

8,413

Foreign currency translation adjustments

105

105

Stock options exercised and other awards

11

327

327

Purchase of treasury shares

(63)

(63)

Balance – August 1, 2020

57,014

$

570

(691)

$

(37,513)

$

822,664

$

985,042

$

30

$

1,770,793

See accompanying notes to consolidated financial statements.

7

Table of Contents

Ulta Beauty, Inc.

Consolidated Statements of Stockholders’ Equity

(Unaudited)

Treasury -

Common Stock

Common Stock

Additional

Total

Issued

Treasury

Paid-In

Retained

Stockholders'

(In thousands)

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Earnings

    

Equity

Balance – February 2, 2019

59,232

$

592

(648)

$

(24,908)

$

738,671

$

1,105,863

$

1,820,218

Net income

192,221

192,221

Stock-based compensation

6,030

6,030

Adoption of accounting standards - ASC 842

(2,375)

(2,375)

Stock options exercised and other awards

348

4

42,052

42,056

Purchase of treasury shares

(27)

(9,183)

(9,183)

Repurchase of common shares

(318)

(3)

(107,396)

(107,399)

Balance – May 4, 2019

59,262

$

593

(675)

$

(34,091)

$

786,753

$

1,188,313

$

1,941,568

Net income

161,258

161,258

Stock-based compensation

6,736

6,736

Stock options exercised and other awards

15

879

879

Purchase of treasury shares

(89)

(89)

Repurchase of common shares

(792)

(8)

(270,893)

(270,901)

Balance – August 3, 2019

58,485

$

585

(675)

$

(34,180)

$

794,368

$

1,078,678

$

1,839,451

See accompanying notes to consolidated financial statements.

8

Table of Contents

Ulta Beauty, Inc.

Notes to Consolidated Financial Statements

(In thousands, except per share and store count data) (Unaudited)

1.Business and basis of presentation

On January 29, 2017, Ulta Salon, Cosmetics & Fragrance, Inc. implemented a holding company reorganization. Pursuant to the reorganization, Ulta Beauty, Inc., which was incorporated as a Delaware corporation in December 2016, became the successor to Ulta Salon, Cosmetics & Fragrance, Inc., the former publicly-traded company and now a wholly owned subsidiary of Ulta Beauty, Inc. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to “we,” “us,” “our,” “Ulta Beauty,” or the “Company” refer to Ulta Beauty, Inc. and its consolidated subsidiaries.

The Company was originally founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. The stores also feature full-service salons. As of August 1, 2020, the Company operated 1,264 stores across 50 states, as shown in the table below.

Number of

Number of

Location

    

stores

    

Location

    

stores

Alabama

22

Montana

6

Alaska

3

Nebraska

5

Arizona

30

Nevada

15

Arkansas

10

New Hampshire

7

California

160

New Jersey

39

Colorado

26

New Mexico

7

Connecticut

17

New York

51

Delaware

3

North Carolina

34

Florida

86

North Dakota

3

Georgia

38

Ohio

43

Hawaii

4

Oklahoma

21

Idaho

9

Oregon

17

Illinois

55

Pennsylvania

45

Indiana

24

Rhode Island

3

Iowa

10

South Carolina

20

Kansas

13

South Dakota

3

Kentucky

15

Tennessee

26

Louisiana

19

Texas

115

Maine

3

Utah

14

Maryland

25