Executive Summary

• Ulta Beauty reported adjusted EPS of $3.61 for 4Q18, excluding the benefit from tax reform related items in fiscal 2017, beating the consensus estimate of $3.50-3.55, and revenue of $2.12 billion, beating the consensus estimate of $2.11 billion.
• Gross margin improved 90 basis points (bps) to 34.9% year over year, with 60 bps driven by new revenue recognition accounting and 30 bps attributed to merchandise margin improvement.
• The company’s fiscal 2019 outlook calls for revenue growth in the low-double-digit percentage range, 6-7% comp growth, 20-30% e-commerce growth and adjusted EPS in the range of $12.65-12.85.