Q4 2024 Ulta Beauty Inc Earnings Call Transcript
Key Points
- Ulta Beauty Inc (ULTA) finished the year ahead of expectations, with strong revenue growth and better-than-expected performance across the P&L.
- The company successfully launched 40 new brands, including exclusive ones like XO Khloé and WYN BEAUTY, enhancing its assortment.
- Ulta Beauty Inc (ULTA) expanded its accessibility by opening 60 net new stores and 100 new Ulta Beauty at Target shop-in-shop locations.
- The loyalty program grew by 3% to a record high of 44.6 million members, indicating strong customer engagement.
- The company initiated plans to expand internationally, including launching in Mexico and the Middle East in 2025.
- Ulta Beauty Inc (ULTA) lost market share in the beauty category for the first time in 2024, highlighting increased competitive pressure.
- The in-store presentation and guest experience were not as strong as desired, indicating execution challenges.
- Operating profit is expected to decrease in the low-double-digit range in 2025 due to strategic investments and inflationary pressures.
- The company anticipates a transitional year in 2025, with flat to 1% comp sales growth, reflecting cautious guidance amidst consumer uncertainty.
- Gross margin is expected to deleverage in 2025, primarily due to store occupancy and supply chain costs, despite efforts to optimize costs.
Good afternoon and welcome to Ulta Beauty's conference call to discuss results for the Ulta Beauty fourth-quarter 2024 earnings results. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce Ms. Kiley Rawlins, Vice President of Investor Relations. Ms. Rawlins, please proceed.
Thank you, Alicia, and good afternoon, everyone. Thank you for joining us for a discussion of Ulta Beauty's fourth-quarter and fiscal '24 results. Hosting our call today are Kecia Steelman, Chief Executive Officer; and Paula Oyibo, Chief Financial Officer.
Before we begin, I'd like to remind you of the company's Safe Harbor language. Many of our remarks today will contain forward-looking statements, which speak only as of today, March 13, 2025. We refer you to our earnings release and SEC filings, where you will find a number of factors which could cause actual results to differ materially from those forward-looking statements.
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