EX-99.12ulta-20250828xex99d1.htmEX-99.1
Exhibit 99.1
ULTA BEAUTY ANNOUNCES SECOND QUARTER FISCAL 2025 RESULTS
Net Sales Increased 9.3% to $2.8 Billion Compared to $2.6 Billion in the Prior Year Quarter
Comparable Sales Increased 6.7%
Net Income Increased to $260.9 Million or $5.78 Per Diluted Share
Bolingbrook, IL – August 28, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“second quarter”) and twenty-six-week period (“first six months”) ended August 2, 2025, compared to the same periods ended August 3, 2024.
13 Weeks Ended
26 Weeks Ended
August 2,
August 3,
August 2,
August 3,
(Dollars in millions, except per share data)
2025 (1)
2024
2025 (1)
2024
Net sales
$
2,788.5
$
2,552.1
$
5,636.8
$
5,277.9
Comparable sales
6.7%
(1.2%)
4.7%
0.2%
Gross profit (as a percentage of net sales)
39.2%
38.3%
39.1%
38.8%
Selling, general and administrative expenses
$
741.7
$
644.8
$
1,452.4
$
1,310.7
Operating income (as a percentage of net sales)
12.4%
12.9%
13.2%
13.8%
Diluted earnings per share
$
5.78
$
5.30
$
12.49
$
11.78
(1)
Includes the results of operations of Space NK since the July 10, 2025 acquisition.
“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth. Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability,” said Kecia Steelman, president and chief executive officer. “I am proud of the Ulta Beauty team’s collective efforts to deliver great guest experiences in stores and across our digital channels.”
Steelman continued, “As we look to the future, we remain committed to executing our Ulta Beauty Unleashed strategy and strengthening our operating model. T1Our outlook for the remainder of the year reflects both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year. While near-term uncertainty persists, we’re staying focused on what we can control and on executing with excellence to deliver our uniquely Ulta Beauty experience.”
Second Quarter of Fiscal 2025 Compared to Second Quarter of Fiscal 2024
●
T2Net sales increased 9.3% to $2.8 billion compared to $2.6 billion, primarily due to increased comparable sales, the acquisition of Space NK, and new store contribution.
●
Comparable sales (sales for stores open at least 14 months and e-commerce T3sales) increased 6.7% compared to a decrease of 1.2%, driven by a 3.7% increase in transactions and a 2.9% increase in average ticket.
●
T4Gross profit increased 11.6% to $1.1 billion compared to $978.2 million. As a percentage of net sales, gross profit increased to 39.2% compared to 38.3%, primarily due to lower inventory shrink and higher merchandise margin, partially offset by deleverage of supply chain costs and other revenue.
●
T5Selling, general and administrative (SG&A) expenses increased 15.0% to $741.7 million compared to $644.8 million. As a percentage of net sales, SG&A expenses increased to 26.6% compared to 25.3%, primarily due to higher incentive compensation, store payroll and benefits, and corporate overhead.
●
Operating income was $344.9 million, or 12.4% of net sales, compared to $329.2 million, or 12.9% of net sales.
●
The tax rate was 24.5% compared to 24.3%.
●
Net income increased 3.3% to $260.9 million compared to $252.6 million.
●
Diluted earnings per share increased 9.1% to $5.78, including a $0.03 benefit due to income tax accounting for stock-based compensation, compared to $5.30.
First Six Months of Fiscal 2025 Compared to First Six Months of Fiscal 2024
●
Net sales increased 6.8% to $5.6 billion compared to $5.3 billion, primarily due to increased comparable sales, the acquisition of Space NK and new store contribution, partially offset by a decrease in other revenue.
●
Comparable sales increased 4.7% compared to an increase of 0.2%, driven by a 2.6% increase in average ticket and a 2.1% increase in transactions.
●
Gross profit increased 7.7% to $2.2 billion compared to $2.0 billion. As a percentage of net sales, gross profit increased to 39.1% compared to 38.8%, primarily due to lower inventory shrink, higher merchandise margin, and favorable channel mix shifts, partially offset by lower other revenue and deleverage of supply chain fixed costs.
●
SG&A expenses increased 10.8% to $1.5 billion compared to $1.3 billion. As a percentage of net sales, SG&A expenses increased to 25.8% compared to 24.8%, primarily due to deleverage of store payroll and benefits, higher incentive compensation, and higher store expenses.
●
Operating income was $746.6 million, or 13.2% of net sales, compared to $730.1 million, or 13.8% of net sales.
●
The tax rate was 24.5% compared to 23.7% primarily due to a reduced benefit from income tax accounting for stock-based compensation.
●
Net income was $565.9 million compared to $565.7 million.
●
Diluted earnings per share increased 6.0% to $12.49, including a $0.04 benefit due to income tax accounting for stock-based compensation, compared to $11.78, 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 second quarter of fiscal 2025 totaled $242.7 million.
T6Merchandise inventories, net at the end of the second quarter of fiscal 2025 increased 20.5% to $2.4 billion compared to $2.0 billion at the end of the second quarter of fiscal 2024. The increase was primarily due to inventory to support new brand launches, 62 net new Ulta Beauty stores, and the addition of 83 net new stores acquired with Space NK.
Short-term debt at the end of the second quarter of fiscal 2025 was $289.1 million, as the Company drew on its revolving credit facility primarily to support the acquisition of Space NK. At the end of the second quarter of fiscal 2024, the Company had no borrowings outstanding under the revolving credit facility.
Share Repurchase Program
T7During the second quarter of fiscal 2025, the Company repurchased 244,559 shares of its common stock at a cost of $109.5 million. During the first six months of fiscal 2025, the Company repurchased 1.2 million shares of its common stock at a cost of $468.3 million. As of August 2, 2025, $2.2 billion remained available under the $3.0 billion share repurchase program announced in October 2024.
Store Update
During the second quarter of fiscal 2025, the Company opened 24 new stores, relocated two stores, remodeled five stores, and closed two stores. During the first six months of fiscal 2025, the Company opened 30 new stores, relocated four stores, remodeled nine stores, and closed two stores. At the end of the second quarter of fiscal 2025, the Company operated 1,473 Ulta Beauty stores totaling 15.4 million square feet across the U.S., excluding the 83 stores in the U.K. and Ireland operated by Space NK.
Fiscal 2025 Outlook
For fiscal 2025, the Company plans to:
Prior Fiscal 2025 Outlook
Updated Fiscal 2025 Outlook
G1Net sales
$11.5 billion to $11.7 billion
$12.0 billion to $12.1 billion
G2Comparable sales
0% to 1.5%
2.5% to 3.5%
G3New stores, net
approximately 60
approximately 63
G4Remodel and relocation projects
40-45
43-48
G5Operating margin
11.7% to 11.8%
11.9% to 12.0%
G6Diluted earnings per share
$22.65 to $23.20
$23.85 to $24.30
G7Share repurchases
approximately $900 million
no change
G8Interest, net
approximately $6 million of interest income
approximately $4 million of interest expense
G9Effective tax rate
approximately 24.5%
no change
G10Capital expenditures
$425 million to $500 million
no change
G11Depreciation and amortization expense
$290 million to $300 million
approximately $300 million
Conference Call Information
A conference call to discuss second quarter of fiscal 2025 results is scheduled for today, August 28, 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://q2-2025-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. There will also be an archived webcast available for a limited time thereafter.
About Ulta Beauty
Ulta Beauty (NASDAQ: ULTA) is the largest specialty beauty retailer in the U.S. and a leading destination for cosmetics, fragrance, skin care, hair care, wellness and salon services. Since opening its first store in 1990, Ulta Beauty has grown to approximately 1,500 stores across the U.S. and redefined beauty retail by bringing together All Things Beauty. All in One Place®. With an expansive product assortment, professional salon services and its beloved Ulta Beauty Rewards loyalty program, the company delivers seamless, personalized experiences across stores, Ulta.com and the Ulta Beauty App – where the possibilities are truly beautiful. Ulta Beauty is also expanding its presence internationally through a joint venture in Mexico, a franchise in the Middle East, and its subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland. 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:
●
T8macroeconomic 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, including our international expansion in Mexico, the Middle East, the U.K., and Ireland;
●
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 possibility that we will not realize the anticipated benefits of the acquisition of Space NK for any reason, including due to challenges with integration and/or achieving anticipated acquisition synergies;
●
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.
Investor Contact:
Kiley Rawlins, CFA
Senior Vice President, Investor Relations
krawlins@ulta.com
Media Contact:
Crystal Carroll
Senior Director, Public Relations
ccarroll@ulta.com
Exhibit 1
Ulta Beauty, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended
August 2,
August 3,
2025
2024
(Unaudited)
(Unaudited)
Net sales
$
2,788,469
100.0%
$
2,552,087
100.0%
Cost of sales
1,696,773
60.8%
1,573,910
61.7%
Gross profit
1,091,696
39.2%
978,177
38.3%
Selling, general and administrative expenses
741,737
26.6%
644,821
25.3%
Pre-opening expenses
5,105
0.2%
4,155
0.2%
Operating income
344,854
12.4%
329,201
12.9%
Interest income, net
(1,413)
(0.1%)
(4,526)
(0.2%)
Income before income taxes and equity net loss of affiliate
346,267
12.4%
333,727
13.1%
Income tax expense
84,795
3.0%
81,171
3.2%
Income before equity net loss of affiliate
261,472
9.4%
252,556
9.9%
Equity net loss of affiliate
597
0.0%
—
0.0%
Net income
$
260,875
9.4%
$
252,556
9.9%
Net income per common share:
Basic
$
5.80
$
5.32
Diluted
$
5.78
$
5.30
Weighted average common shares outstanding:
Basic
44,955
47,505
Diluted
45,112
47,667
Exhibit 2
Ulta Beauty, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
26 Weeks Ended
August 2,
August 3,
2025
2024
(Unaudited)
(Unaudited)
Net sales
$
5,636,836
100.0%
$
5,277,935
100.0%
Cost of sales
3,430,921
60.9%
3,229,978
61.2%
Gross profit
2,205,915
39.1%
2,047,957
38.8%
Selling, general and administrative expenses
1,452,350
25.8%
1,310,734
24.8%
Pre-opening expenses
6,934
0.1%
7,074
0.1%
Operating income
746,631
13.2%
730,149
13.8%
Interest income, net
(4,960)
(0.1%)
(11,426)
(0.2%)
Income before income taxes and equity net loss of affiliate
751,591
13.3%
741,575
14.1%
Income tax expense
184,439
3.3%
175,906
3.3%
Income before equity net loss of affiliate
567,152
10.1%
565,669
10.7%
Equity net loss of affiliate
1,225
0.0%
—
0.0%
Net income
$
565,927
10.0%
$
565,669
10.7%
Net income per common share:
Basic
$
12.53
$
11.83
Diluted
$
12.49
$
11.78
Weighted average common shares outstanding:
Basic
45,158
47,815
Diluted
45,297
48,022
Exhibit 3
Ulta Beauty, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
August 2,
February 1,
August 3,
2025
2025
2024
(Unaudited)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
242,745
$
703,201
$
413,962
Receivables, net
224,412
223,334
200,863
Merchandise inventories, net
2,407,051
1,968,214
1,998,286
Prepaid expenses and other current assets
165,963
129,113
132,023
Prepaid income taxes
28,877
4,946
53,607
Total current assets
3,069,048
3,028,808
2,798,741
Property and equipment, net
1,332,503
1,239,295
1,225,850
Operating lease assets
1,682,151
1,609,870
1,599,735
Goodwill
392,606
10,870
10,870
Other intangible assets, net
5,466
204
357
Deferred compensation plan assets
50,550
47,951
46,280
Other long-term assets
98,324
64,695
55,575
Total assets
$
6,630,648
$
6,001,693
$
5,737,408
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
708,655
$
563,761
$
566,904
Accrued liabilities
460,232
380,241
348,042
Deferred revenue
460,187
500,585
394,987
Current operating lease liabilities
282,593
288,114
281,301
Accrued income taxes
—
46,777
—
Short-term debt
289,101
—
—
Total current liabilities
2,200,768
1,779,478
1,591,234
Non-current operating lease liabilities
1,716,133
1,635,120
1,647,698
Deferred income taxes
49,158
42,593
88,461
Other long-term liabilities
60,729
56,149
61,855
Total liabilities
4,026,788
3,513,340
3,389,248
Commitments and contingencies
Total stockholders’ equity
2,603,860
2,488,353
2,348,160
Total liabilities and stockholders’ equity
$
6,630,648
$
6,001,693
$
5,737,408
Exhibit 4
Ulta Beauty, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
26 Weeks Ended
August 2,
August 3,
2025
2024
(Unaudited)
(Unaudited)
Operating activities
Net income
$
565,927
$
565,669
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
143,198
130,053
Non-cash lease expense
183,528
163,481
Deferred income taxes
2,232
2,540
Stock-based compensation expense
20,338
19,272
Loss on disposal of property and equipment
4,689
5,204
Equity net loss of affiliate
1,225
—
Change in operating assets and liabilities:
Receivables
(198)
7,076
Merchandise inventories
(366,091)
(256,150)
Prepaid expenses and other current assets
(21,657)
(16,425)
Income taxes
(70,406)
(60,666)
Accounts payable
98,115
29,715
Accrued liabilities
(3,881)
(33,634)
Deferred revenue
(44,418)
(41,604)
Operating lease liabilities
(180,316)
(170,779)
Other assets and liabilities
(15,742)
15,127
Net cash provided by operating activities
316,543
358,879
Investing activities
Capital expenditures
(155,988)
(186,301)
Acquisitions, net of cash acquired
(386,793)
—
Other investments
(17,130)
(5,091)
Net cash used in investing activities
(559,911)
(191,392)
Financing activities
Borrowings from short-term debt
593,641
—
Payments on short-term debt
(333,100)
—
Repurchase of common shares
(479,242)
(501,768)
Stock options exercised
14,851
9,196
Purchase of treasury shares
(13,238)
(23,459)
Debt issuance costs
—
(4,088)
Net cash used in financing activities
(217,088)
(520,119)
Net decrease in cash and cash equivalents
(460,456)
(352,632)
Cash and cash equivalents at beginning of period
703,201
766,594
Cash and cash equivalents at end of period
$
242,745
$
413,962
Exhibit 5
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 end
Fiscal 2025
quarter
quarter
quarter
of the quarter (1)
1st Quarter
1,445
6
0
1,451
2nd Quarter
1,451
24
2
1,473
(1)Excludes 83 stores in the U.K. and Ireland operated by Space NK as of the second quarter of fiscal 2025.
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
2nd Quarter
15,163,207
212,267
21,926
15,353,548
Exhibit 6
Ulta Beauty, Inc.
Sales by Category
The following tables set forth the approximate percentage of net sales by primary category:
13 Weeks Ended
August 2,
August 3,
2025 (1)
2024
Cosmetics
38%
39%
Skincare and wellness
25%
24%
Haircare
19%
20%
Fragrance
12%
11%
Services
4%
4%
Other
2%
2%
100%
100%
26 Weeks Ended
August 2,
August 3,
2025 (1)
2024
Cosmetics
39%
40%
Skincare and wellness
25%
24%
Haircare
19%
19%
Fragrance
11%
11%
Services
4%
4%
Other
2%
2%
100%
100%
(1)Excludes the impact of Space NK net sales for the 13 and 26 weeks ended August 2, 2025.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 1 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 2 | 2 | 2 |
| Buybacks share repurchase, buyback program | 3 | — | 2 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Raised fiscal outlook
“For fiscal 2025, the Company raised its net sales outlook to $12.0 billion to $12.1 billion and comparable sales to 2.5% to 3.5%.”
Source: SEC EDGAR · public domain · Highlights by Palanor