Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.1
Revenue
3 Months Ended
May 01, 2021
Revenue  
Revenue

3.Revenue

Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue sources include the private label and co-branded credit card programs, as well as 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  

May 1,

May 2,

(Percentage of net sales)

2021

2020

Cosmetics (1)

45%

50%

Skincare

19%

17%

Haircare products and styling tools

19%

18%

Fragrance and bath

11%

7%

Services

3%

4%

Accessories and other (1)

3%

4%

100%

100%

(1) Certain sales departments were reclassified between categories in the prior year to conform to current year presentation.

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 weeks ended May 1, 2021 and May 2, 2020:

May 1,

May 2,

(In thousands)

2021

    

2020

Beginning balance

$

269,032

$

230,011

Additions to contract liabilities (1)

97,681

41,636

Deductions to contract liabilities (2)

(113,541)

(64,994)

Ending balance

$

253,172

$

206,653

(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 $16,918 and $9,677 at May 1, 2021 and May 2, 2020, respectively.