On May 29, U.S. beauty retail giant Ulta Beauty announced its financial results for the first quarter of fiscal year 2025 (February–May 2025). Net sales reached $2.85 billion, up 4.5% year-over-year, exceeding analyst estimates of $2.79 billion (LSEG data).
Growth was fueled by new product launches from brands such as Milk Makeup and various Korean skincare lines, along with increased demand from younger consumers for trend-driven, affordable beauty brands. Among them, e.l.f. Beauty stood out with strong performance, particularly among Gen Z customers, driving sales of lip and skincare products.
Ulta Beauty also saw positive results from the continued rollout of celebrity brands such as Fenty Beauty by Rihanna, along with ongoing investments in digital marketing, which have contributed to customer growth. Comparable sales rose 2.9%, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions.
On the profitability front, Ulta reported net income of $305.1 million and adjusted earnings per share (EPS) of $6.70, significantly exceeding analyst expectations of $5.81. A notable factor behind this outperformance was the reduction in inventory losses and damages, which helped offset rising costs. Gross margin came in at 39.1%, nearly flat from the 39.2% recorded a year earlier.
Ulta also raised its full-year guidance for fiscal 2025. The EPS forecast has been revised upward to $22.65–$23.20, from a previous range of $22.50–$22.90. The company also now expects comparable sales to grow between 0% and 1.5%, up from its earlier projection of 0% to 1%.
Commenting on the first-quarter results, CEO Kecia Steelman said in a statement: “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.”
The “Ulta Beauty Unleashed” plan refers to the company’s long-term growth strategy, which focuses on enhancing brand strength, integrating store and e-commerce channels through an omnichannel approach, delivering personalized customer experiences, and advancing sustainability efforts. In recent years, Ulta has concentrated on attracting new, younger consumers, particularly Gen Z and millennials, through trend-focused brand introductions and enhanced digital initiatives.
Steelman also addressed the uncertain market environment: “The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve.”
During the first quarter, Ulta opened six new stores, remodeled four, and relocated two. As of the end of the quarter, the company operated 1,451 stores nationwide.
In terms of category performance, cosmetics remained the largest segment, accounting for 40% of total sales, although down from 42% a year ago. Meanwhile, skincare and wellness grew from 23% to 25%, indicating a shifting focus that could shape future priorities.
Additionally, Ulta repurchased approximately 986,000 shares of its common stock during the quarter, totaling $358.7 million, reflecting an ongoing commitment to shareholder returns.
Despite broader economic uncertainty, Ulta Beauty continues to position itself at the heart of the U.S. beauty market through a combination of strong product offerings, strategic brand positioning, and an agile retail-digital operation model.
Copyright © 2025 Oui Speak Fashion. All rights reserved.
