Net Sales Increased 4.5% to $2.8 Billion
Comparable Sales Increased 2.9% Net Income of $305.1
Million or $6.70 Per Diluted Share Company Updates Fiscal
2025 Guidance
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%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250529628147/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
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