The company opened 29 new stores, closed three stores, relocated two stores, and remodeled nine stores during the 26 weeks ended August 3, 2024, indicating continued investment in physical retail presence.

Comparable sales increased by 0.2% for the 26 weeks ended August 3, 2024, driven by a 0.4% increase in average ticket, partially offset by a 0.2% decrease in transactions.

The company's growth strategy includes driving breakthrough growth through an expanded definition of All Things Beauty and evolving the omnichannel experience through connected physical and digital ecosystems.

Selling, general and administrative (SG&A) expenses increased $44.1 million or 7.3%, to $644.8 million for the 13 weeks ended August 3, 2024, compared to $600.7 million for the 13 weeks ended July 29, 2023.

Management highlights the ability to execute operational excellence priorities, including continuous improvement, Project SOAR (the replacement of our enterprise resource planning platform), and supply chain optimization.

Income tax expense of $81.2 million for the 13 weeks ended August 3, 2024 represents an effective tax rate of 24.3%, compared to $96.0 million of income tax expense representing an effective tax rate of 24.2% for the 13 weeks ended July 29, 2023.

Persistent inflationary and macroeconomic pressures are impacting consumer spending habits broadly, which may lead to a recession and further impact the ability to grow sales and maintain historical profitability levels.

The possibility that cybersecurity or information security breaches and other disruptions could compromise our information or result in the unauthorized disclosure of confidential information is noted as a risk factor.

Changes in the good relationships with brand partners, the ability to obtain sufficient merchandise, and the ability to offer exclusive products are identified as potential risks.

Our research indicates that Ulta Beauty has captured meaningful market share across all categories over the last several years.

We remain confident that our differentiated and diverse business model, our commitment to strategic investments, and our highly engaged associates will continue to drive market share gains over the long term.

Comparable sales are affected by the general national, regional, and local economic conditions and corresponding impact on customer spending levels.

Cost of sales includes distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance.

Our ability to effectively manage our inventory and protect against inventory shrink is listed as a key risk factor.

The ability to execute operational excellence priorities, including continuous improvement, Project SOAR (the replacement of our enterprise resource planning platform), and supply chain optimization is highlighted.

Our primary cash needs are for rent, capital expenditures for new, remodeled, and relocated stores, increased merchandise inventories related to store expansion and new brand additions, supply chain improvements, share repurchases, and continued investment in our information technology systems.

The ability to execute our operational excellence priorities, including continuous improvement, Project SOAR (the replacement of our enterprise resource planning platform), and supply chain optimization is highlighted.

The possibility of material disruptions to our information systems, including our Ulta.com website and mobile applications is noted as a risk factor.

Total cost of shares repurchased, including excise tax, was $501.8 million for the 26 weeks ended August 3, 2024.

In March 2024, the Board of Directors authorized a new share repurchase program (the 2024 Share Repurchase Program) pursuant to which the Company may repurchase up to $2.0 billion of the Company's common stock.

We have historically used cash primarily for new, remodeled, relocated, and refreshed stores, supply chain investments, short-term investments, and investments in information technology systems.

The Company is currently evaluating the impact of these new rules.

The continued growth of our business and any future increases in net sales, net income, and cash flows is dependent on our ability to execute our strategic priorities: 1) drive breakthrough and disruptive growth through an expanded definition of All Things Beauty; 2) evolve the omnichannel experience through connected physical and digital ecosystems, All In Your World; 3) expand and deepen our presence across the beauty journey, positioning Ulta Beauty at the Heart of the Beauty Community; 4) drive operational excellence and optimization; 5) protect and cultivate our world-class culture and talent; and 6) expand our environmental and social impact.

The overall beauty market expanded in 2023 and into the first 26 weeks of fiscal 2024, supported by on-going consumer engagement with the beauty category.

Persistent inflationary and macroeconomic pressures are impacting consumer spending habits broadly, which we believe may have contributed to lower sales trends through the first 26 weeks of fiscal 2024.

Comparable sales is a key metric that is monitored closely within the retail industry.