Trending Assets
Top investors this month
Trending Assets
Top investors this month
$ULTA Update
Post media

Summary of Ulta Beauty Fiscal Q3
================================================
Post media
Comparable sales (sales for stores open at least 14 months, including stores temporarily closed due to COVID-19, and e-commerce sales) increased 25.8% compared to a decrease of 8.9% in the third quarter of fiscal 2020, driven by a 16.8% increase in transactions and a 7.7% increase in average ticket. Compared to the third quarter of fiscal 2019, comparable sales increased 14.3%.

Share Repurchases (aka burning some tokens)
During the third quarter of fiscal 2021, the Company repurchased 340,668 shares of its common stock at a cost of $126.4 million. During the first nine months of fiscal 2021, the Company repurchased 2,330,244 shares of its common stock at a cost of $762.2 million.

Post media

Thoughts
  • $ULTA continues to develop eCommerce solutions that are necessary to future-proof its existence.
  • The beauty industry is recovering at a pace faster than we anticipated.
  • Ulta at Target (TGT) initiative will attract a broad set of consumers who may not have gone to Ulta locations or the Ulta website even though they are potential Ulta customers.
  • Ulta is planning to make key investments in its supply chain. They are upgrading their ERP platform. "We expect to invest $160 million to $180 million in capital over the next 3 years, with most of the investment planned for fiscal 2022 and 2023." (12/2/2021 transcript). I'm expecting this to cost +$200m.

Disclosure: I am long ULTA (tiny position).

Rick Gurner's avatar
Share repurchases = burning tokens

This guy gets it.
Related
Already have an account?