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Aug 02
Ulta Q2 2025 Earnings Report
Ulta delivered solid revenue growth and expanded profitability in Q2 2025.
Key Takeaways
Ulta Beauty posted a strong Q2 with 9.3% revenue growth, boosted by increased comparable sales and broad-based category strength. Net income and EPS also saw healthy gains.
Revenue grew 9.3% YoY to $2.79B, driven by higher transactions and average ticket.
Comparable sales rose 6.7%, reversing a 1.2% decline in the prior year.
EPS increased 9.1% to $5.78, aided by margin expansion.
Ulta opened 24 new stores, ending the quarter with 1,473 stores.
Ulta
Ulta
Ulta Revenue by Segment
Revenue by Segment
Cosmetics Revenue
CapyFin.comSkincare and Wellness Revenue
CapyFin.comHaircare Revenue
CapyFin.comFragrance Revenue
CapyFin.comServices Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Ulta raised its full-year outlook, expecting stronger sales, margin expansion, and higher EPS despite macro uncertainties.
Positive Outlook
- Raised full-year net sales outlook to $12.0B–$12.1B
- Comparable sales guidance increased to 2.5%–3.5%
- EPS guidance raised to $23.85–$24.30
- Operating margin expected to reach 11.9%–12.0%
- New store openings raised to approximately 63
Challenges Ahead
- SG&A expenses growing faster than revenue
- Inventory up 20.5% YoY due to expansion and new brands
- Short-term debt of $289.1M drawn for Space NK acquisition
- Pre-opening and remodeling costs increased YoY
- Ongoing caution regarding evolving consumer demand
Revenue & Expenses
Visualization of income flow from segment revenue to net income