Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2.2
Revenue
9 Months Ended
Oct. 29, 2022
Revenue  
Revenue

3.Revenue

Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue includes the private label and co-branded credit card programs, royalties derived from the partnership with Target Corporation, and deferred revenue related to the loyalty program and gift card breakage.

Disaggregated revenue

The following table sets forth the approximate percentage of net sales by primary category:

13 Weeks Ended  

39 Weeks Ended

October 29,

October 30,

October 29,

October 30,

(Percentage of net sales)

2022

2021

2022

2021

Cosmetics

44%

45%

43%

44%

Haircare products and styling tools

21%

21%

21%

20%

Skincare

16%

16%

17%

17%

Fragrance and bath

12%

12%

12%

12%

Services

4%

3%

4%

4%

Accessories and other

3%

3%

3%

3%

100%

100%

100%

100%

Deferred revenue

Deferred revenue primarily represents contract liabilities for the obligation to transfer additional goods or services to a guest for which the Company has received consideration, such as unredeemed Ultamate Rewards loyalty points and unredeemed Ulta Beauty gift cards. In addition, breakage on gift cards is recognized proportionately as redemption occurs.

The following table provides a summary of the changes included in deferred revenue during the 13 and 39 weeks ended October 29, 2022 and October 30, 2021:

13 Weeks Ended

39 Weeks Ended

October 29,

October 30,

October 29,

October 30,

(In thousands)

2022

2021

2022

    

2021

Beginning balance

$

305,913

$

256,227

$

345,206

$

269,032

Additions to contract liabilities (1)

97,521

92,074

224,938

201,106

Deductions to contract liabilities (2)

(99,443)

(85,078)

(266,153)

(206,915)

Ending balance

$

303,991

$

263,223

$

303,991

$

263,223

(1) Loyalty points and gift cards issued in the current period but not redeemed or expired.
(2) Revenue recognized in the current period related to the beginning liability.

Other amounts included in deferred revenue were $8,141 and $9,405 at October 29, 2022 and October 30, 2021, respectively.