Ulta Beauty Announces Third Quarter Fiscal 2025 Results

BOLINGBROOK, Ill.--( BUSINESS WIRE)--Ulta Beauty, Inc. (NASDAQ: ULTA) today announced consolidated financial results for the thirteen-week period (“third quarter”) and thirty-nine-week period (“first nine months”) ended November 1, 2025, compared to the same periods ended November 2, 2024, respectively.

13 Weeks Ended

39 Weeks Ended

November 1,

November 2,

November 1,

November 2,

(Dollars in millions, except per share data)

2025

2024

2025

2024

Net sales

2,857.6

2,530.1

8,494.5

7,808.0

Comparable sales

6.3%

0.6%

5.2%

0.3%

Gross profit (as a percentage of net sales)

40.4%

39.7%

39.6%

39.1%

Selling, general and administrative expenses

840.9

682.3

2,293.3

1,993.0

Operating income (as a percentage of net sales)

10.8%

12.6%

12.4%

13.4%

Diluted earnings per share

5.14

17.65

16.93

“Our third quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed Strategy. Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels, with notable strength in ecommerce,” said Kecia Steelman, president and CEO. “As we look ahead to the all-important holiday season, we know many consumers’ wallets are pressured and they are seeking value. We are confident in our plans, and our teams are ready to make Holiday Happen Here at Ulta Beauty, driving excitement and delivering for our guests and their loved ones, now and into the new year.”

Third Quarter of Fiscal 2025 Compared to Third Quarter of Fiscal 2024

First Nine Months of Fiscal 2025 Compared to First Nine Months of Fiscal 2024

Balance Sheet

Cash and cash equivalents at the end of the third quarter of fiscal 2025 totaled $204.9 million.

Merchandise inventories, net at the end of the third quarter of fiscal 2025 increased 16.0% to $2.7 billion compared to $2.4 billion at the end of the third quarter of fiscal 2024. The increase was primarily due to inventory to support new brand launches, the acquisition of Space NK, and 63 net new Ulta Beauty stores.

Short-term debt at the end of the third quarter of fiscal 2025 was $551.7 million compared to $199.7 million at the end of the third quarter of fiscal 2024, as the Company drew on its revolving credit facility to support working capital needs and ongoing capital allocation priorities, including share repurchases and capital expenditures.

Share Repurchase Program

During the third quarter of fiscal 2025, the Company repurchased 426,914 shares of its common stock at a cost of $224.7 million. During the first nine months of fiscal 2025, the Company repurchased 1.7 million shares of its common stock at a cost of $693.0 million. As of November 1, 2025, $2.0 billion remained available under the $3.0 billion share repurchase program announced in October 2024.

Store Update

During the third quarter of fiscal 2025, the Company opened 28 new stores, remodeled 15 stores, and closed one store. During the first nine months of fiscal 2025, the Company opened 58 new stores, relocated four stores, remodeled 24 stores, and closed three stores. At the end of the third quarter of fiscal 2025, the Company operated 1,500 Ulta Beauty stores totaling 15.6 million square feet across the U.S., excluding the 84 stores in the U.K. and Ireland operated by Space NK.

Fiscal 2025 Outlook

The Company is revising its previous guidance for fiscal 2025 as follows:

Prior Fiscal 2025 Outlook

Updated Fiscal 2025 Outlook

Net sales

$12.0 billion to $12.1 billion

Approximately $12.3 billion

Comparable sales

2.5% to 3.5%

4.4% to 4.7%

New stores, net

approximately 63

no change

Store remodel and relocation projects

43-48

no change

Operating margin

11.9% to 12.0%

12.3% to 12.4%

Diluted earnings per share

$23.85 to $24.30

$25.20 to $25.50

Share repurchases

approximately $900 million

no change

Interest expense, net

approximately $4 million

no change

Effective tax rate

approximately 24.5%

no change

Capital expenditures

$425 million to $500 million

no change

Depreciation and amortization expense

approximately $300 million

no change

Conference Call Information

A conference call to discuss third quarter of fiscal 2025 results is scheduled for today, December 4, 2025, at 4:30 p.m. Eastern Time / 3:30 p.m. Central Time. Investors and analysts who are interested in participating in the call are invited to register for the live event at https://q3-2025-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 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:

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

November 1,

November 2,

2025

2024

(Unaudited)

Net sales

2,857,623

100.0

2,530,100

100.0

Cost of sales

1,701,958

59.6

1,524,456

60.3

Gross profit

1,155,665

40.4

1,005,644

39.7

Selling, general and administrative expenses

840,920

29.4

682,259

27.0

Pre-opening expenses

5,326

0.2

4,883

0.2

Operating income

309,419

10.8

318,502

12.6

Interest expense (income), net

4,123

0.1

(1,674

)

(0.1

Income before income taxes and equity net loss of affiliate

305,296

10.7

320,176

12.7

Income tax expense

73,436

2.6

77,997

3.1

Income before equity net loss of affiliate

231,860

8.1

242,179

9.6

Equity net loss of affiliate

985

0.0

—

0.0

Net income

230,875

8.1

242,179

9.6

Net income per common share:

Basic

5.16

Diluted

5.14

Weighted average common shares outstanding:

Basic

44,731

46,928

Diluted

44,895

47,092

Exhibit 2

Ulta Beauty, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

39 Weeks Ended

November 1,

November 2,

2025

2024

(Unaudited)

Net sales

8,494,459

100.0

7,808,035

100.0

Cost of sales

5,132,879

60.4

4,754,434

60.9

Gross profit

3,361,580

39.6

3,053,601

39.1

Selling, general and administrative expenses

2,293,270

27.0

1,992,993

25.5

Pre-opening expenses

12,260

0.1

11,957

0.2

Operating income

1,056,050

12.4

1,048,651

13.4

Interest income, net

(837

)

(0.0

(13,100

)

(0.2

Income before income taxes and equity net loss of affiliate

1,056,887

12.4

1,061,751

13.6

Income tax expense

257,875

3.0

253,903

3.3

Income before equity net loss of affiliate

799,012

9.4

807,848

10.3

Equity net loss of affiliate

2,210

0.0

—

0.0

Net income

796,802

9.4

807,848

10.3

Net income per common share:

Basic

17.70

17.00

Diluted

17.65

16.93

Weighted average common shares outstanding:

Basic

45,016

47,519

Diluted

45,151

47,710

Exhibit 3

Ulta Beauty, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

November 1,

February 1,

November 2,

2025

2024

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

204,921

703,201

177,782

Receivables, net

237,352

223,334

213,621

Merchandise inventories, net

2,743,639

1,968,214

2,365,186

Prepaid expenses and other current assets

158,394

129,113

135,514

Prepaid income taxes

26,465

4,946

62,759

Total current assets

3,370,771

3,028,808

2,954,862

Property and equipment, net

1,366,504

1,239,295

1,264,419

Operating lease assets

1,710,804

1,609,870

1,619,055

Goodwill

392,606

10,870

Other intangible assets, net

6,089

204

281

Deferred compensation plan assets

52,684

47,951

48,872

Other long-term assets

112,834

64,695

60,127

Total assets

7,012,292

6,001,693

5,958,486

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

759,001

563,761

593,219

Accrued liabilities

473,949

380,241

333,463

Deferred revenue

462,964

500,585

405,040

Current operating lease liabilities

290,716

288,114

284,985

Accrued income taxes

—

46,777

—

Short-term debt

551,721

—

199,700

Total current liabilities

2,538,351

1,779,478

1,816,407

Non-current operating lease liabilities

1,732,219

1,635,120

1,656,317

Deferred income taxes

45,312

42,593

91,729

Other long-term liabilities

63,396

56,149

65,024

Total liabilities

4,379,278

3,513,340

3,629,477

Commitments and contingencies

Total stockholders’ equity

2,633,014

2,488,353

2,329,009

Total liabilities and stockholders’ equity

7,012,292

6,001,693

5,958,486

Exhibit 4

Ulta Beauty, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

39 Weeks Ended

November 1,

November 2,

2025

2024

(Unaudited)

Operating activities

Net income

796,802

807,848

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

218,985

197,075

Non-cash lease expense

260,632

235,950

Deferred income taxes

(1,613

)

5,808

Stock-based compensation expense

30,324

27,691

Loss on disposal of property and equipment

7,398

7,280

Equity net loss of affiliate

2,210

—

Change in operating assets and liabilities:

Receivables

(13,138

)

(5,682

)

Merchandise inventories

(702,678

)

(623,050

)

Prepaid expenses and other current assets

(14,088

)

(19,916

)

Income taxes

(67,994

)

(69,818

)

Accounts payable

123,911

54,210

Accrued liabilities

6,567

(45,777

)

Deferred revenue

(41,642

)

(31,551

)

Operating lease liabilities

(261,864

)

(250,267

)

Other assets and liabilities

(21,628

)

12,240

Net cash provided by operating activities

322,184

302,041

Investing activities

Capital expenditures

(243,262

)

(300,536

)

Acquisitions, net of cash acquired

(386,793

)

—

Other investments

(25,445

)

(6,108

)

Net cash used in investing activities

(655,500

)

(306,644

)

Financing activities

Borrowings from short-term debt

1,641,844

199,700

Payments on short-term debt

(1,118,683

)

—

Repurchase of common shares

(703,960

)

(765,384

)

Stock options exercised

30,103

9,200

Purchase of treasury shares

(13,505

)

(23,566

)

Debt issuance costs

(763

)

(4,159

)

Net cash used in financing activities

(164,964

)

(584,209

)

Net decrease in cash and cash equivalents

(498,280

)

(588,812

)

Cash and cash equivalents at beginning of period

703,201

766,594

Cash and cash equivalents at end of period

204,921

177,782

Exhibit 5

Ulta Beauty, Inc.

Store Update

Total stores open

Number of stores

Total stores

at beginning of the

opened during the

closed during the

open at end

Fiscal 2025

quarter

of the quarter (1)

1 st Quarter

1,445

1,451

2 nd Quarter

1,451

1,473

3 rd Quarter

1,473

1,500

(1) Excludes 84 stores in the U.K. and Ireland operated by Space NK as of the third 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 (1)

1 st Quarter

15,110,170

53,037

15,163,207

2 nd Quarter

15,163,207

212,267

21,926

15,353,548

3 rd Quarter

15,353,548

244,275

8,890

15,588,933

(1) Excludes 84 stores in the U.K. and Ireland operated by Space NK as of the third quarter of fiscal 2025.

Exhibit 6

Ulta Beauty, Inc.

Consolidated Sales by Category

The following tables set forth the approximate percentage of net sales by primary category:

13 Weeks Ended

November 1,

November 2,

2025

2024

Cosmetics

Skincare and wellness

Haircare

Fragrance

Services

Other

100

39 Weeks Ended

November 1,

November 2,

2025

2024

Cosmetics

Skincare and wellness

Haircare

Fragrance

Services

Other

100