Ulta Beauty Announces Second Quarter Fiscal 2025 Results

Net Sales Increased 9.3% to $2.8 Billion Compared to $2.6 Billion in the Prior Year Quarter

Comparable Sales Increased 6.7%

Net Income Increased to $260.9 Million or $5.78 Per Diluted Share

BOLINGBROOK, Ill.--(BUSINESS WIRE)-- Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“second quarter”) and twenty-six-week period (“first six months”) ended August 2, 2025, compared to the same periods ended August 3, 2024.

		13 Weeks Ended						26 Weeks Ended
		August 2,			August 3,			August 2,			August 3,
(Dollars in millions, except per share data)		2025 (1)			2024			2025 (1)			2024
Net sales		$	2,788.5		$	2,552.1		$	5,636.8		$	5,277.9
Comparable sales			6.7%			(1.2%)			4.7%			0.2%
Gross profit (as a percentage of net sales)			39.2%			38.3%			39.1%			38.8%
Selling, general and administrative expenses		$	741.7		$	644.8		$	1,452.4		$	1,310.7
Operating income (as a percentage of net sales)			12.4%			12.9%			13.2%			13.8%
Diluted earnings per share		$	5.78		$	5.30		$	12.49		$	11.78
________________________________
(1) Includes the results of operations of Space NK since the July 10, 2025 acquisition.

“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth. Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability,” said Kecia Steelman, president and chief executive officer. “I am proud of the Ulta Beauty team’s collective efforts to deliver great guest experiences in stores and across our digital channels.”

Steelman continued, “As we look to the future, we remain committed to executing our Ulta Beauty Unleashed strategy and strengthening our operating model. Our outlook for the remainder of the year reflects both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year. While near-term uncertainty persists, we’re staying focused on what we can control and on executing with excellence to deliver our uniquely Ulta Beauty experience.”

Second Quarter of Fiscal 2025 Compared to Second Quarter of Fiscal 2024

• Net sales increased 9.3% to $2.8 billion compared to $2.6 billion, primarily due to increased comparable sales, the acquisition of Space NK, and new store contribution.
• Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 6.7% compared to a decrease of 1.2%, driven by a 3.7% increase in transactions and a 2.9% increase in average ticket.
• Gross profit increased 11.6% to $1.1 billion compared to $978.2 million. As a percentage of net sales, gross profit increased to 39.2% compared to 38.3%, primarily due to lower inventory shrink and higher merchandise margin, partially offset by deleverage of supply chain costs and other revenue.
• Selling, general and administrative (SG&A) expenses increased 15.0% to $741.7 million compared to $644.8 million. As a percentage of net sales, SG&A expenses increased to 26.6% compared to 25.3%, primarily due to higher incentive compensation, store payroll and benefits, and corporate overhead.
• Operating income was $344.9 million, or 12.4% of net sales, compared to $329.2 million, or 12.9% of net sales.
• The tax rate was 24.5% compared to 24.3%.
• Net income increased 3.3% to $260.9 million compared to $252.6 million.
• Diluted earnings per share increased 9.1% to $5.78, including a $0.03 benefit due to income tax accounting for stock-based compensation, compared to $5.30.

First Six Months of Fiscal 2025 Compared to First Six Months of Fiscal 2024

• Net sales increased 6.8% to $5.6 billion compared to $5.3 billion, primarily due to increased comparable sales, the acquisition of Space NK and new store contribution, partially offset by a decrease in other revenue.
• Comparable sales increased 4.7% compared to an increase of 0.2%, driven by a 2.6% increase in average ticket and a 2.1% increase in transactions.
• Gross profit increased 7.7% to $2.2 billion compared to $2.0 billion. As a percentage of net sales, gross profit increased to 39.1% compared to 38.8%, primarily due to lower inventory shrink, higher merchandise margin, and favorable channel mix shifts, partially offset by lower other revenue and deleverage of supply chain fixed costs.
• SG&A expenses increased 10.8% to $1.5 billion compared to $1.3 billion. As a percentage of net sales, SG&A expenses increased to 25.8% compared to 24.8%, primarily due to deleverage of store payroll and benefits, higher incentive compensation, and higher store expenses.
• Operating income was $746.6 million, or 13.2% of net sales, compared to $730.1 million, or 13.8% of net sales.
• The tax rate was 24.5% compared to 23.7% primarily due to a reduced benefit from income tax accounting for stock-based compensation.
• Net income was $565.9 million compared to $565.7 million.
• Diluted earnings per share increased 6.0% to $12.49, including a $0.04 benefit due to income tax accounting for stock-based compensation, compared to $11.78, including a $0.10 benefit due to income tax accounting for stock-based compensation. 

Balance Sheet

Cash and cash equivalents at the end of the second quarter of fiscal 2025 totaled $242.7 million.

Merchandise inventories, net at the end of the second quarter of fiscal 2025 increased 20.5% to $2.4 billion compared to $2.0 billion at the end of the second quarter of fiscal 2024. The increase was primarily due to inventory to support new brand launches, 62 net new Ulta Beauty stores, and the addition of 83 net new stores acquired with Space NK.

Short-term debt at the end of the second quarter of fiscal 2025 was $289.1 million, as the Company drew on its revolving credit facility primarily to support the acquisition of Space NK. At the end of the second quarter of fiscal 2024, the Company had no borrowings outstanding under the revolving credit facility.

Share Repurchase Program

During the second quarter of fiscal 2025, the Company repurchased 244,559 shares of its common stock at a cost of $109.5 million. During the first six months of fiscal 2025, the Company repurchased 1.2 million shares of its common stock at a cost of $468.3 million. As of August 2, 2025, $2.2 billion remained available under the $3.0 billion share repurchase program announced in October 2024.

Store Update

During the second quarter of fiscal 2025, the Company opened 24 new stores, relocated two stores, remodeled five stores, and closed two stores. During the first six months of fiscal 2025, the Company opened 30 new stores, relocated four stores, remodeled nine stores, and closed two stores. At the end of the second quarter of fiscal 2025, the Company operated 1,473 Ulta Beauty stores totaling 15.4 million square feet across the U.S., excluding the 83 stores in the U.K. and Ireland operated by Space NK.

Fiscal 2025 Outlook

For fiscal 2025, the Company plans to:

		Prior Fiscal 2025 Outlook		Updated Fiscal 2025 Outlook
Net sales		$11.5 billion to $11.7 billion		$12.0 billion to $12.1 billion
Comparable sales		0% to 1.5%		2.5% to 3.5%
New stores, net		approximately 60		approximately 63
Remodel and relocation projects		40-45		43-48
Operating margin		11.7% to 11.8%		11.9% to 12.0%
Diluted earnings per share		$22.65 to $23.20		$23.85 to $24.30
Share repurchases		approximately $900 million		no change
Interest, net		approximately $6 million of interest income		approximately $4 million of interest expense
Effective tax rate		approximately 24.5%		no change
Capital expenditures		$425 million to $500 million		no change
Depreciation and amortization expense		$290 million to $300 million		approximately $300 million

Conference Call Information

A conference call to discuss second quarter of fiscal 2025 results is scheduled for today, August 28, 2025, at 4:30 p.m. Eastern Time / 3:30 p.m. CT. Investors and analysts who are interested in participating in the call are invited to register for the live event at https://q2-2025-ulta-beauty-earnings-conference-call.open-exchange.net/.

A replay will be available on the company's Investor Relations website at https://www.ulta.com/investor. There will also be an archived webcast available for a limited time thereafter.

About Ulta Beauty

Ulta Beauty (NASDAQ: ULTA) is the largest specialty beauty retailer in the U.S. and a leading destination for cosmetics, fragrance, skin care, hair care, wellness and salon services. Since opening its first store in 1990, Ulta Beauty has grown to approximately 1,500 stores across the U.S. and redefined beauty retail by bringing together All Things Beauty. All in One Place^®. With an expansive product assortment, professional salon services and its beloved Ulta Beauty Rewards loyalty program, the company delivers seamless, personalized experiences across stores, Ulta.com and the Ulta Beauty App – where the possibilities are truly beautiful. Ulta Beauty is also expanding its presence internationally through a joint venture in Mexico, a franchise in the Middle East, and its subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland. For more information, visit www.ulta.com.

Forward‑Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect the Company’s current views with respect to, among other things, future events and financial performance. These statements can be identified by the use of forward-looking words such as “outlook,” “believes,” “expects,” “plans,” “estimates,” “targets,” “strategies” or other comparable words. Any forward-looking statements contained in this press release are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates, targets, strategies or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, which include, without limitation:

• macroeconomic conditions, including inflation and elevated interest rates, as well as prior labor, transportation, and shipping cost pressures, have had, and may continue to have, a negative impact on our business, financial condition, profitability, and cash flows (including future uncertain impacts, especially when combined with increased tariffs);
• changes in the overall level of consumer spending and volatility in the economy, including as a result of macroeconomic conditions, tariffs, and geopolitical events;
• our ability to sustain our growth plans and successfully implement our long-range strategic and financial plan, including our international expansion in Mexico, the Middle East, the U.K., and Ireland;
• the ability to execute our operational excellence priorities, including continuous improvement and supply chain optimization;
• our ability to gauge beauty trends and react to changing consumer preferences in a timely manner;
• the possibility that we may be unable to compete effectively in our highly competitive markets;
• the possibility of significant interruptions in the operations of our distribution centers, fast fulfillment center, and market fulfillment centers;
• the possibility that cybersecurity or information security breaches and other disruptions could compromise our information or result in the unauthorized disclosure of confidential information;
• the possibility of material disruptions to our information systems, including our Ulta.com website and mobile applications;
• the possibility that we will not realize the anticipated benefits of the acquisition of Space NK for any reason, including due to challenges with integration and/or achieving anticipated acquisition synergies;
• the failure to maintain satisfactory compliance with applicable privacy and data protection laws and regulations;
• changes in the good relationships we have with our brand partners, our ability to continue to obtain sufficient merchandise from our brand partners, and/or our ability to continue to offer permanent or temporary exclusive products of our brand partners;
• our ability to effectively manage our inventory and protect against inventory shrink;
• changes in the wholesale cost of our products and/or interruptions at our brand partners’ or third-party vendors’ operations;
• epidemics, pandemics or natural disasters, which could negatively impact sales;
• the possibility that new store openings and existing locations may be impacted by developer or co-tenant issues;
• our ability to attract and retain key executive personnel;
• the impact of climate change on our business operations and/or supply chain;
• our ability to successfully execute our common stock repurchase program or implement future common stock repurchase programs;
• a decline in operating results which could lead to asset impairment and store closure charges; and
• other risk factors detailed in the Company’s public filings with the Securities and Exchange Commission (the SEC), including risk factors contained in its Annual Report on Form 10-K for the fiscal year ended February 1, 2025, as such may be amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q.

The Company’s filings with the SEC are available at www.sec.gov. Except to the extent required by the federal securities laws, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Exhibit 1
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data)
		13 Weeks Ended
		August 2,							August 3,
		2025							2024
		(Unaudited)							(Unaudited)
Net sales		$	2,788,469			100.0	%		$	2,552,087			100.0	%
Cost of sales			1,696,773			60.8	%			1,573,910			61.7	%
Gross profit			1,091,696			39.2	%			978,177			38.3	%
Selling, general and administrative expenses			741,737			26.6	%			644,821			25.3	%
Pre-opening expenses			5,105			0.2	%			4,155			0.2	%
Operating income			344,854			12.4	%			329,201			12.9	%
Interest income, net			(1,413	)		(0.1	%)			(4,526	)		(0.2	%)
Income before income taxes and equity net loss of affiliate			346,267			12.4	%			333,727			13.1	%
Income tax expense			84,795			3.0	%			81,171			3.2	%
Income before equity net loss of affiliate			261,472			9.4	%			252,556			9.9	%
Equity net loss of affiliate			597			0.0	%			—			0.0	%
Net income		$	260,875			9.4	%		$	252,556			9.9	%
Net income per common share:
Basic		$	5.80						$	5.32
Diluted		$	5.78						$	5.30
Weighted average common shares outstanding:
Basic			44,955							47,505
Diluted			45,112							47,667

Exhibit 2
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data)
		26 Weeks Ended
		August 2,							August 3,
		2025							2024
		(Unaudited)							(Unaudited)
Net sales		$	5,636,836			100.0	%		$	5,277,935			100.0	%
Cost of sales			3,430,921			60.9	%			3,229,978			61.2	%
Gross profit			2,205,915			39.1	%			2,047,957			38.8	%
Selling, general and administrative expenses			1,452,350			25.8	%			1,310,734			24.8	%
Pre-opening expenses			6,934			0.1	%			7,074			0.1	%
Operating income			746,631			13.2	%			730,149			13.8	%
Interest income, net			(4,960	)		(0.1	%)			(11,426	)		(0.2	%)
Income before income taxes and equity net loss of affiliate			751,591			13.3	%			741,575			14.1	%
Income tax expense			184,439			3.3	%			175,906			3.3	%
Income before equity net loss of affiliate			567,152			10.1	%			565,669			10.7	%
Equity net loss of affiliate			1,225			0.0	%			—			0.0	%
Net income		$	565,927			10.0	%		$	565,669			10.7	%
Net income per common share:
Basic		$	12.53						$	11.83
Diluted		$	12.49						$	11.78
Weighted average common shares outstanding:
Basic			45,158							47,815
Diluted			45,297							48,022

Exhibit 3
Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands)
		August 2,			February 1,			August 3,
		2025			2025			2024
		(Unaudited)						(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	242,745		$	703,201		$	413,962
Receivables, net			224,412			223,334			200,863
Merchandise inventories, net			2,407,051			1,968,214			1,998,286
Prepaid expenses and other current assets			165,963			129,113			132,023
Prepaid income taxes			28,877			4,946			53,607
Total current assets			3,069,048			3,028,808			2,798,741
Property and equipment, net			1,332,503			1,239,295			1,225,850
Operating lease assets			1,682,151			1,609,870			1,599,735
Goodwill			392,606			10,870			10,870
Other intangible assets, net			5,466			204			357
Deferred compensation plan assets			50,550			47,951			46,280
Other long-term assets			98,324			64,695			55,575
Total assets		$	6,630,648		$	6,001,693		$	5,737,408
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	708,655		$	563,761		$	566,904
Accrued liabilities			460,232			380,241			348,042
Deferred revenue			460,187			500,585			394,987
Current operating lease liabilities			282,593			288,114			281,301
Accrued income taxes			—			46,777			—
Short-term debt			289,101			—			—
Total current liabilities			2,200,768			1,779,478			1,591,234
Non-current operating lease liabilities			1,716,133			1,635,120			1,647,698
Deferred income taxes			49,158			42,593			88,461
Other long-term liabilities			60,729			56,149			61,855
Total liabilities			4,026,788			3,513,340			3,389,248
Commitments and contingencies
Total stockholders’ equity			2,603,860			2,488,353			2,348,160
Total liabilities and stockholders’ equity		$	6,630,648		$	6,001,693		$	5,737,408

Exhibit 4
Ulta Beauty, Inc. Condensed Consolidated Statements of Cash Flows (In thousands)
		26 Weeks Ended
		August 2,				August 3,
		2025				2024
		(Unaudited)				(Unaudited)
Operating activities
Net income		$	565,927			$	565,669
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			143,198				130,053
Non-cash lease expense			183,528				163,481
Deferred income taxes			2,232				2,540
Stock-based compensation expense			20,338				19,272
Loss on disposal of property and equipment			4,689				5,204
Equity net loss of affiliate			1,225				—
Change in operating assets and liabilities:
Receivables			(198	)			7,076
Merchandise inventories			(366,091	)			(256,150	)
Prepaid expenses and other current assets			(21,657	)			(16,425	)
Income taxes			(70,406	)			(60,666	)
Accounts payable			98,115				29,715
Accrued liabilities			(3,881	)			(33,634	)
Deferred revenue			(44,418	)			(41,604	)
Operating lease liabilities			(180,316	)			(170,779	)
Other assets and liabilities			(15,742	)			15,127
Net cash provided by operating activities			316,543				358,879
Investing activities
Capital expenditures			(155,988	)			(186,301	)
Acquisitions, net of cash acquired			(386,793	)			—
Other investments			(17,130	)			(5,091	)
Net cash used in investing activities			(559,911	)			(191,392	)
Financing activities
Borrowings from short-term debt			593,641				—
Payments on short-term debt			(333,100	)			—
Repurchase of common shares			(479,242	)			(501,768	)
Stock options exercised			14,851				9,196
Purchase of treasury shares			(13,238	)			(23,459	)
Debt issuance costs			—				(4,088	)
Net cash used in financing activities			(217,088	)			(520,119	)
Net decrease in cash and cash equivalents			(460,456	)			(352,632	)
Cash and cash equivalents at beginning of period			703,201				766,594
Cash and cash equivalents at end of period		$	242,745			$	413,962

Exhibit 5
Ulta Beauty, Inc. Store Update
		Total stores open		Number of stores		Number of stores		Total stores
		at beginning of the		opened during the		closed during the		open at end
Fiscal 2025		quarter		quarter		quarter		of the quarter (1)
1st Quarter		1,445		6		0		1,451
2nd Quarter		1,451		24		2		1,473
________________________________
(1) Excludes 83 stores in the U.K. and Ireland operated by Space NK as of the second quarter of fiscal 2025.

				Gross square feet for
		Total gross square		stores opened or		Gross square feet for		Total gross square
		feet at beginning of		expanded during the		stores closed		feet at end of the
Fiscal 2025		the quarter		quarter		during the quarter		quarter
1st Quarter		15,110,170		53,037		0		15,163,207
2nd Quarter		15,163,207		212,267		21,926		15,353,548

Exhibit 6
Ulta Beauty, Inc. Sales by Category
The following tables set forth the approximate percentage of net sales by primary category:
		13 Weeks Ended
		August 2,			August 3,
		2025 (1)			2024
Cosmetics		38	%		39	%
Skincare and wellness		25	%		24	%
Haircare		19	%		20	%
Fragrance		12	%		11	%
Services		4	%		4	%
Other		2	%		2	%
		100	%		100	%

		26 Weeks Ended
		August 2,			August 3,
		2025 (1)			2024
Cosmetics		39	%		40	%
Skincare and wellness		25	%		24	%
Haircare		19	%		19	%
Fragrance		11	%		11	%
Services		4	%		4	%
Other		2	%		2	%
		100	%		100	%
________________________________
(1) Excludes the impact of Space NK net sales for the 13 and 26 weeks ended August 2, 2025.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250828660095/en/

Investor Contact:

Kiley Rawlins, CFA

Senior Vice President, Investor Relations

krawlins@ulta.com

Media Contact:

Crystal Carroll

Senior Director, Public Relations

ccarroll@ulta.com

Source: Ulta Beauty, Inc.