Ulta Beauty Announces Third Quarter Fiscal 2025 Results

Key Terms

comparable sales financial

"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.

effective tax rate financial

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

diluted earnings per share financial

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

revolving credit facility financial

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

share repurchase program financial

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

Net Sales Increased 12.9% to $2.9 Billion Compared to $2.5 Billion in the Prior Year Quarter

Comparable Sales Increased 6.3%

Net Income was $230.9 Million or $5.14 Per Diluted Share

Company Increases Fiscal 2025 Guidance

BOLINGBROOK, Ill.--(BUSINESS WIRE)-- Ulta Beauty, Inc. (NASDAQ: ULTA) today announced consolidated financial results for the thirteen-week period (“third quarter”) and thirty-nine-week period (“first nine months”) ended November 1, 2025, compared to the same periods ended November 2, 2024, respectively.

		13 Weeks Ended						39 Weeks Ended
		November 1,			November 2,			November 1,			November 2,
(Dollars in millions, except per share data)		2025			2024			2025			2024
Net sales		$	2,857.6		$	2,530.1		$	8,494.5		$	7,808.0
Comparable sales			6.3%			0.6%			5.2%			0.3%
Gross profit (as a percentage of net sales)			40.4%			39.7%			39.6%			39.1%
Selling, general and administrative expenses		$	840.9		$	682.3		$	2,293.3		$	1,993.0
Operating income (as a percentage of net sales)			10.8%			12.6%			12.4%			13.4%
Diluted earnings per share		$	5.14		$	5.14		$	17.65		$	16.93

“Our third quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed Strategy. Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels, with notable strength in ecommerce,” said Kecia Steelman, president and CEO. “As we look ahead to the all-important holiday season, we know many consumers’ wallets are pressured and they are seeking value. We are confident in our plans, and our teams are ready to make Holiday Happen Here at Ulta Beauty, driving excitement and delivering for our guests and their loved ones, now and into the new year.”

Third Quarter of Fiscal 2025 Compared to Third Quarter of Fiscal 2024

• Net sales increased 12.9% to $2.9 billion compared to $2.5 billion, primarily due to increased comparable sales, the acquisition of Space NK, and net new store contribution.
• Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 6.3% compared to 0.6%, driven by a 3.8% increase in average ticket and a 2.4% increase in transactions.
• Gross profit increased 14.9% to $1.2 billion compared to $1.0 billion. As a percentage of net sales, gross profit increased to 40.4% compared to 39.7%, primarily due to lower inventory shrink and higher merchandise margin, partially offset by unfavorable channel mix.
• Selling, general and administrative (SG&A) expenses increased 23.3% to $840.9 million compared to $682.3 million. As a percentage of net sales, SG&A expenses increased to 29.4% compared to 27.0%, primarily due to higher incentive compensation, store payroll and benefits, store expenses, and amortization of cloud-based software investments.
• Operating income was $309.4 million, or 10.8% of net sales, compared to $318.5 million, or 12.6% of net sales.
• The effective tax rate was 24.1% compared to 24.4%.
• Net income was $230.9 million compared to $242.2 million.
• Diluted earnings per share was flat at $5.14.

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

• Net sales increased 8.8% to $8.5 billion compared to $7.8 billion, primarily due to increased comparable sales, the acquisition of Space NK, and net new store contribution.
• Comparable sales increased 5.2% compared to 0.3%, driven by a 3.0% increase in average ticket and a 2.2% increase in transactions.
• Gross profit increased 10.1% to $3.4 billion compared to $3.1 billion. As a percentage of net sales, gross profit increased to 39.6% compared to 39.1%, primarily due to lower inventory shrink and higher merchandise margin, partially offset by deleverage of other revenue.
• SG&A expenses increased 15.1% to $2.3 billion compared to $2.0 billion. As a percentage of net sales, SG&A expenses increased to 27.0% compared to 25.5%, primarily due to deleverage of store payroll and benefits, higher incentive compensation, and higher store expenses.
• Operating income was $1.1 billion, or 12.4% of net sales, compared to $1.0 billion, or 13.4% of net sales.
• The effective tax rate was 24.4% compared to 23.9%.
• Net income was $796.8 million compared to $807.8 million.
• Diluted earnings per share increased 4.3% to $17.65, compared to $16.93 which included a $0.10 benefit due to income tax accounting for stock-based compensation. 

Balance Sheet

Cash and cash equivalents at the end of the third quarter of fiscal 2025 totaled $204.9 million.

Merchandise inventories, net at the end of the third quarter of fiscal 2025 increased 16.0% to $2.7 billion compared to $2.4 billion at the end of the third quarter of fiscal 2024. The increase was primarily due to inventory to support new brand launches, the acquisition of Space NK, and 63 net new Ulta Beauty stores.

Short-term debt at the end of the third quarter of fiscal 2025 was $551.7 million compared to $199.7 million at the end of the third quarter of fiscal 2024, as the Company drew on its revolving credit facility to support working capital needs and ongoing capital allocation priorities, including share repurchases and capital expenditures.

Share Repurchase Program

During the third quarter of fiscal 2025, the Company repurchased 426,914 shares of its common stock at a cost of $224.7 million. During the first nine months of fiscal 2025, the Company repurchased 1.7 million shares of its common stock at a cost of $693.0 million. As of November 1, 2025, $2.0 billion remained available under the $3.0 billion share repurchase program announced in October 2024.

Store Update

During the third quarter of fiscal 2025, the Company opened 28 new stores, remodeled 15 stores, and closed one store. During the first nine months of fiscal 2025, the Company opened 58 new stores, relocated four stores, remodeled 24 stores, and closed three stores. At the end of the third quarter of fiscal 2025, the Company operated 1,500 Ulta Beauty stores totaling 15.6 million square feet across the U.S., excluding the 84 stores in the U.K. and Ireland operated by Space NK.

Fiscal 2025 Outlook

The Company is revising its previous guidance for fiscal 2025 as follows:

		Prior Fiscal 2025 Outlook		Updated Fiscal 2025 Outlook
Net sales		$12.0 billion to $12.1 billion		Approximately $12.3 billion
Comparable sales		2.5% to 3.5%		4.4% to 4.7%
New stores, net		approximately 63		no change
Store remodel and relocation projects		43-48		no change
Operating margin		11.9% to 12.0%		12.3% to 12.4%
Diluted earnings per share		$23.85 to $24.30		$25.20 to $25.50
Share repurchases		approximately $900 million		no change
Interest expense, net		approximately $4 million		no change
Effective tax rate		approximately 24.5%		no change
Capital expenditures		$425 million to $500 million		no change
Depreciation and amortization expense		approximately $300 million		no change

Conference Call Information

A conference call to discuss third quarter of fiscal 2025 results is scheduled for today, December 4, 2025, at 4:30 p.m. Eastern Time / 3:30 p.m. Central Time. Investors and analysts who are interested in participating in the call are invited to register for the live event at https://q3-2025-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 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
		November 1,						November 2,
		2025						2024
		(Unaudited)						(Unaudited)
Net sales		$	2,857,623		100.0	%		$	2,530,100			100.0	%
Cost of sales			1,701,958		59.6	%			1,524,456			60.3	%
Gross profit			1,155,665		40.4	%			1,005,644			39.7	%
Selling, general and administrative expenses			840,920		29.4	%			682,259			27.0	%
Pre-opening expenses			5,326		0.2	%			4,883			0.2	%
Operating income			309,419		10.8	%			318,502			12.6	%
Interest expense (income), net			4,123		0.1	%			(1,674	)		(0.1	%)
Income before income taxes and equity net loss of affiliate			305,296		10.7	%			320,176			12.7	%
Income tax expense			73,436		2.6	%			77,997			3.1	%
Income before equity net loss of affiliate			231,860		8.1	%			242,179			9.6	%
Equity net loss of affiliate			985		0.0	%			—			0.0	%
Net income		$	230,875		8.1	%		$	242,179			9.6	%
Net income per common share:
Basic		$	5.16					$	5.16
Diluted		$	5.14					$	5.14
Weighted average common shares outstanding:
Basic			44,731						46,928
Diluted			44,895						47,092

Exhibit 2
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data)
		39 Weeks Ended
		November 1,							November 2,
		2025							2024
		(Unaudited)							(Unaudited)
Net sales		$	8,494,459			100.0	%		$	7,808,035			100.0	%
Cost of sales			5,132,879			60.4	%			4,754,434			60.9	%
Gross profit			3,361,580			39.6	%			3,053,601			39.1	%
Selling, general and administrative expenses			2,293,270			27.0	%			1,992,993			25.5	%
Pre-opening expenses			12,260			0.1	%			11,957			0.2	%
Operating income			1,056,050			12.4	%			1,048,651			13.4	%
Interest income, net			(837	)		(0.0	%)			(13,100	)		(0.2	%)
Income before income taxes and equity net loss of affiliate			1,056,887			12.4	%			1,061,751			13.6	%
Income tax expense			257,875			3.0	%			253,903			3.3	%
Income before equity net loss of affiliate			799,012			9.4	%			807,848			10.3	%
Equity net loss of affiliate			2,210			0.0	%			—			0.0	%
Net income		$	796,802			9.4	%		$	807,848			10.3	%
Net income per common share:
Basic		$	17.70						$	17.00
Diluted		$	17.65						$	16.93
Weighted average common shares outstanding:
Basic			45,016							47,519
Diluted			45,151							47,710

Exhibit 3
Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands)
		November 1,			February 1,			November 2,
		2025			2025			2024
		(Unaudited)						(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	204,921		$	703,201		$	177,782
Receivables, net			237,352			223,334			213,621
Merchandise inventories, net			2,743,639			1,968,214			2,365,186
Prepaid expenses and other current assets			158,394			129,113			135,514
Prepaid income taxes			26,465			4,946			62,759
Total current assets			3,370,771			3,028,808			2,954,862
Property and equipment, net			1,366,504			1,239,295			1,264,419
Operating lease assets			1,710,804			1,609,870			1,619,055
Goodwill			392,606			10,870			10,870
Other intangible assets, net			6,089			204			281
Deferred compensation plan assets			52,684			47,951			48,872
Other long-term assets			112,834			64,695			60,127
Total assets		$	7,012,292		$	6,001,693		$	5,958,486
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	759,001		$	563,761		$	593,219
Accrued liabilities			473,949			380,241			333,463
Deferred revenue			462,964			500,585			405,040
Current operating lease liabilities			290,716			288,114			284,985
Accrued income taxes			—			46,777			—
Short-term debt			551,721			—			199,700
Total current liabilities			2,538,351			1,779,478			1,816,407
Non-current operating lease liabilities			1,732,219			1,635,120			1,656,317
Deferred income taxes			45,312			42,593			91,729
Other long-term liabilities			63,396			56,149			65,024
Total liabilities			4,379,278			3,513,340			3,629,477
Commitments and contingencies
Total stockholders’ equity			2,633,014			2,488,353			2,329,009
Total liabilities and stockholders’ equity		$	7,012,292		$	6,001,693		$	5,958,486

Exhibit 4
Ulta Beauty, Inc. Condensed Consolidated Statements of Cash Flows (In thousands)
		39 Weeks Ended
		November 1,				November 2,
		2025				2024
		(Unaudited)				(Unaudited)
Operating activities
Net income		$	796,802			$	807,848
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			218,985				197,075
Non-cash lease expense			260,632				235,950
Deferred income taxes			(1,613	)			5,808
Stock-based compensation expense			30,324				27,691
Loss on disposal of property and equipment			7,398				7,280
Equity net loss of affiliate			2,210				—
Change in operating assets and liabilities:
Receivables			(13,138	)			(5,682	)
Merchandise inventories			(702,678	)			(623,050	)
Prepaid expenses and other current assets			(14,088	)			(19,916	)
Income taxes			(67,994	)			(69,818	)
Accounts payable			123,911				54,210
Accrued liabilities			6,567				(45,777	)
Deferred revenue			(41,642	)			(31,551	)
Operating lease liabilities			(261,864	)			(250,267	)
Other assets and liabilities			(21,628	)			12,240
Net cash provided by operating activities			322,184				302,041
Investing activities
Capital expenditures			(243,262	)			(300,536	)
Acquisitions, net of cash acquired			(386,793	)			—
Other investments			(25,445	)			(6,108	)
Net cash used in investing activities			(655,500	)			(306,644	)
Financing activities
Borrowings from short-term debt			1,641,844				199,700
Payments on short-term debt			(1,118,683	)			—
Repurchase of common shares			(703,960	)			(765,384	)
Stock options exercised			30,103				9,200
Purchase of treasury shares			(13,505	)			(23,566	)
Debt issuance costs			(763	)			(4,159	)
Net cash used in financing activities			(164,964	)			(584,209	)
Net decrease in cash and cash equivalents			(498,280	)			(588,812	)
Cash and cash equivalents at beginning of period			703,201				766,594
Cash and cash equivalents at end of period		$	204,921			$	177,782

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
3rd Quarter		1,473		28		1		1,500
____________________________
(1) Excludes 84 stores in the U.K. and Ireland operated by Space NK as of the third 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 (1)
1st Quarter		15,110,170		53,037		0		15,163,207
2nd Quarter		15,163,207		212,267		21,926		15,353,548
3rd Quarter		15,353,548		244,275		8,890		15,588,933
____________________________
(1) Excludes 84 stores in the U.K. and Ireland operated by Space NK as of the third quarter of fiscal 2025.

Exhibit 6
Ulta Beauty, Inc. Consolidated Sales by Category
The following tables set forth the approximate percentage of net sales by primary category:
		13 Weeks Ended
		November 1,			November 2,
		2025			2024
Cosmetics		41	%		41	%
Skincare and wellness		24	%		23	%
Haircare		19	%		20	%
Fragrance		11	%		10	%
Services		3	%		4	%
Other		2	%		2	%
		100	%		100	%

		39 Weeks Ended
		November 1,			November 2,
		2025			2024
Cosmetics		40	%		41	%
Skincare and wellness		24	%		24	%
Haircare		19	%		19	%
Fragrance		11	%		10	%
Services		4	%		4	%
Other		2	%		2	%
		100	%		100	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251204408171/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.