Ulta Beauty Announces First Quarter Fiscal 2025 Results

Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“first quarter”) ended May 3, 2025.

		13 Weeks Ended
		May 3,			May 4,
(Dollars in millions, except per share data)		2025			2024
Net sales		$	2,848.4		$	2,725.8
Comparable sales			2.9%			1.6%
Gross profit (as a percentage of net sales)			39.1%			39.2%
Selling, general and administrative expenses		$	710.6		$	665.9
Operating income (as a percentage of net sales)			14.1%			14.7%
Diluted earnings per share		$	6.70		$	6.47
New store openings, net			6			10

“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth," said Kecia Steelman, president and chief executive officer. "The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve. We believe our model uniquely positions us to win, and we will continue to focus on serving our guests while staying agile as we move through the year."

First Quarter of Fiscal 2025 Compared to First Quarter of Fiscal 2024

• Net sales increased 4.5% to $2.8 billion compared to $2.7 billion, primarily due to increased comparable sales and new store contribution, partially offset by a decrease in other revenue.
• Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 2.9% compared to the first quarter of fiscal 2024, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions.
• Gross profit increased 4.2% to $1.11 billion compared to $1.07 billion. As a percentage of net sales, gross profit decreased to 39.1% compared to 39.2%, primarily due to deleverage of store and supply chain fixed costs and lower other revenue, partially offset by lower inventory shrink.
• Selling, general and administrative (“SG&A”) expenses increased 6.7% to $710.6 million compared to $665.9 million. As a percentage of net sales, SG&A expenses increased to 24.9% compared to 24.4%, primarily due to deleverage of store payroll and benefits and store expenses, partially offset by leverage of corporate overhead.
• Operating income was $401.8 million, or 14.1% of net sales, compared to $400.9 million, or 14.7% of net sales.
• The tax rate increased to 24.6% compared to 23.2%, primarily due to a reduced benefit from income tax accounting for stock-based compensation.
• Net income was $305.1 million compared to $313.1 million.
• Diluted earnings per share was $6.70, including a $0.01 benefit due to income tax accounting for stock-based compensation, compared to $6.47, 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 first quarter of fiscal 2025 totaled $454.6 million.

Merchandise inventories, net at the end of first quarter of fiscal 2025 increased 11.3% to $2.1 billion compared to $1.9 billion at the end of the first quarter of fiscal 2024. The increase was primarily due to inventory to support new brand launches, strategic investments in key categories, and 56 net new stores.

Share Repurchase Program

During the first quarter of fiscal 2025, the Company repurchased 986,733 shares of its common stock at a cost of $358.7 million. As of May 3, 2025, $2.3 billion remained available under the $3.0 billion share repurchase program announced in October 2024.

Store Update

During the first quarter of fiscal 2025, the Company opened six new stores, remodeled four stores, and relocated two stores. At the end of the first quarter of fiscal 2025 the Company operated 1,451 stores totaling 15.2 million square feet.

Fiscal 2025 Outlook

The Company has updated its outlook for fiscal 2025.

		Prior Fiscal 2025 Outlook		Updated Fiscal 2025 Outlook
Net sales		$11.5 billion to $11.6 billion		$11.5 billion to $11.7 billion
Comparable sales		0% to 1%		0% to 1.5%
New stores, net		approximately 60		no change
Remodel and relocation projects		40-45		no change
Operating margin		11.7% to 11.8%		no change
Diluted earnings per share		$22.50 to $22.90		$22.65 to $23.20
Share repurchases		approximately $900 million		no change
Interest income		approximately $6 million		no change
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		no change

Conference Call Information

A conference call to discuss first quarter of fiscal 2025 results is scheduled for today, May 29, 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://q1-2025-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 approximately two hours following the live call for a period of 30 days.

About Ulta Beauty

At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the Company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty. All in One Place^®. Today, Ulta Beauty operates 1,451 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. 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;
• 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 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
		May 3,							May 4,
		2025							2024
		(Unaudited)							(Unaudited)
Net sales		$	2,848,367			100.0	%		$	2,725,848			100.0	%
Cost of sales			1,734,148			60.9	%			1,656,068			60.8	%
Gross profit			1,114,219			39.1	%			1,069,780			39.2	%
Selling, general and administrative expenses			710,613			24.9	%			665,913			24.4	%
Pre-opening expenses			1,829			0.1	%			2,919			0.1	%
Operating income			401,777			14.1	%			400,948			14.7	%
Interest income, net			(3,547	)		(0.1	%)			(6,900	)		(0.3	%)
Income before income taxes and equity net loss of affiliate			405,324			14.2	%			407,848			15.0	%
Income tax expense			99,644			3.5	%			94,735			3.5	%
Income before equity net loss of affiliate			305,680			10.7	%			313,113			11.5	%
Equity net loss of affiliate			628			0.0	%			—			0.0	%
Net income		$	305,052			10.7	%		$	313,113			11.5	%
Net income per common share:
Basic		$	6.72						$	6.51
Diluted		$	6.70						$	6.47
Weighted average common shares outstanding:
Basic			45,362							48,125
Diluted			45,508							48,381

Exhibit 2

Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands)
		May 3,			February 1,			May 4,
		2025			2025			2024
		(Unaudited)						(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	454,629		$	703,201		$	524,596
Receivables, net			225,146			223,334			203,463
Merchandise inventories, net			2,121,519			1,968,214			1,906,040
Prepaid expenses and other current assets			138,396			129,113			126,529
Prepaid income taxes			—			4,946			—
Total current assets			2,939,690			3,028,808			2,760,628
Property and equipment, net			1,251,287			1,239,295			1,195,658
Operating lease assets			1,658,834			1,609,870			1,561,767
Goodwill			10,870			10,870			10,870
Other intangible assets, net			—			204			434
Deferred compensation plan assets			47,467			47,951			45,718
Other long-term assets			78,541			64,695			56,864
Total assets		$	5,986,689		$	6,001,693		$	5,631,939
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	537,518		$	563,761		$	463,777
Accrued liabilities			346,960			380,241			332,692
Deferred revenue			462,843			500,585			398,729
Current operating lease liabilities			285,764			288,114			284,815
Accrued income taxes			130,765			46,777			92,711
Total current liabilities			1,763,850			1,779,478			1,572,724
Non-current operating lease liabilities			1,689,439			1,635,120			1,607,953
Deferred income taxes			46,013			42,593			89,556
Other long-term liabilities			57,084			56,149			60,963
Total liabilities			3,556,386			3,513,340			3,331,196
Commitments and contingencies
Total stockholders’ equity			2,430,303			2,488,353			2,300,743
Total liabilities and stockholders’ equity		$	5,986,689		$	6,001,693		$	5,631,939

Exhibit 3

Ulta Beauty, Inc. Consolidated Statements of Cash Flows (In thousands)
		13 Weeks Ended
		May 3,				May 4,
		2025				2024
		(Unaudited)				(Unaudited)
Operating activities
Net income		$	305,052			$	313,113
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			72,033				64,739
Non-cash lease expense			91,105				77,938
Deferred income taxes			3,420				3,635
Stock-based compensation expense			11,418				10,082
Loss on disposal of property and equipment			892				2,975
Equity net loss of affiliate			628				—
Change in operating assets and liabilities:
Receivables			(1,812	)			4,476
Merchandise inventories			(153,305	)			(163,904	)
Prepaid expenses and other current assets			(9,283	)			(10,931	)
Income taxes			88,934				85,652
Accounts payable			(24,920	)			(74,069	)
Accrued liabilities			(32,716	)			(43,846	)
Deferred revenue			(37,742	)			(37,862	)
Operating lease liabilities			(88,100	)			(83,500	)
Other assets and liabilities			(5,583	)			10,842
Net cash provided by operating activities			220,021				159,340
Investing activities
Capital expenditures			(79,031	)			(91,024	)
Other investments			(7,346	)			(2,563	)
Net cash used in investing activities			(86,377	)			(93,587	)
Financing activities
Repurchase of common shares			(369,786	)			(289,431	)
Stock options exercised			481				8,913
Purchase of treasury shares			(12,911	)			(23,283	)
Debt issuance costs			—				(3,950	)
Net cash used in financing activities			(382,216	)			(307,751	)
Net decrease in cash and cash equivalents			(248,572	)			(241,998	)
Cash and cash equivalents at beginning of period			703,201				766,594
Cash and cash equivalents at end of period		$	454,629			$	524,596

Exhibit 4

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
Fiscal 2025		quarter		quarter		quarter		end of the quarter
1st Quarter		1,445		6		0		1,451

				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

Exhibit 5

Ulta Beauty, Inc. Sales by Category
The following table sets forth the approximate percentage of net sales by primary category:
		13 Weeks Ended
		May 3,		May 4,
		2025		2024
Cosmetics		40%		42%
Skincare and wellness		25%		23%
Haircare		18%		19%
Fragrance		11%		10%
Services		4%		4%
Other		2%		2%
		100%		100%

 

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