ULTANEUTRAL

Gross Margin

40.1%

Updated 78h ago

Sector Performance

44th percentile

ULTA

40.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

ULTA’s gross margin of 40.1% means that for every dollar of revenue, the company keeps about 40.1 cents after deducting the direct costs of producing its products and services, a key measure of core profitability.

This figure sits below the sector median of 44.4%, placing ULTA in the 44th percentile among its peers, indicating it earns a lower margin than more than half of comparable companies. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all reported as N/A, so there is no historical comparison to evaluate whether the margin is improving or deteriorating. Because the current gross margin level is below the sector median and no trend information is available, the risk is that the company may be less efficient at managing costs than its peers, but the lack of a negative trend leaves the opportunity unclear. This metric supports the overall NEUTRAL verdict, as the below-median margin alone is a moderate concern that does not decisively tip the stock toward a bullish or bearish case.

Frequently Asked Questions

What does the Gross Margin tell investors about ULTA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are ULTA's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.