Why Ulta Beauty’s Margins Narrowed in Fiscal 4Q17
The company’s fiscal 4Q17 gross margin fell 50 basis points to 34.0% due to the one-time bonuses for hourly associates, lower merchandise margins, and investments in the company’s salon business. Leverage in fixed store costs had a favorable impact on the company’s fiscal 4Q17 gross margin. Ulta Beauty’s (ULTA) operating margin declined 110 basis points on a year-over-year basis to 13.1% in fiscal 4Q17.