Ulta Beauty Announces First Quarter Fiscal 2025 Results

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

“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.

Exhibit 1