THE WHAT? Ulta Beauty reported third quarter fiscal 2025 results showing growth in net sales, comparable sales, and gross profit, while reaffirming expansion plans and increasing full-year guidance.
THE DETAILS Net sales rose 12.9% to US$2.9 billion, driven by stronger comparable sales, the Space NK acquisition, and new store growth. Comparable sales increased 6.3%, supported by higher average ticket and transaction volumes. Gross profit reached 40.4% of sales, reflecting lower shrink and improved merchandise margin, though SG&A expenses grew to 29.4% of sales due to higher payroll, incentives, and software amortization. Operating income declined to 10.8% of sales, with net income at US$230.9 million and diluted EPS flat at US$5.14.
Across the first nine months, net sales increased 8.8% to US$8.5 billion, while comparable sales rose 5.2%. Inventory increased 16% as the company supported new brand launches and integrated Space NK locations. Ulta repurchased 426,914 shares during the quarter and continues to operate 1,500 U.S. stores alongside 84 Space NK stores in the UK and Ireland. The company raised its fiscal 2025 outlook, now expecting approximately US$12.3 billion in net sales, 4.4%–4.7% comparable sales growth, operating margin of 12.3%–12.4%, and diluted EPS between US$25.20 and US$25.50.
THE WHY? The results indicate sustained demand across beauty categories and ongoing channel strength, with expanded guidance signalling confidence in sales momentum, productivity initiatives, and the integration of strategic acquisitions.
Source: Ulta Beauty
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