Ulta Beauty (Ulta) has reported $2.85 billion in sales for the first quarter of fiscal 2025, a 4.5% increase over the same period last year. According to the retailer, comparable sales also rose 2.9%, driven by both increased transactions and higher average spending per customer.
“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance,” said CEO Kecia Steelman in the company’s press release. “Our Ulta Beauty Unleashed plan is resonating with guests,” she added, “energizing our team, and fueling growth.”
Steady growth, rising costs, and strategic spend
Despite rising store and staffing costs, Ulta posted $305.1 million in net income and earnings of $6.70 per share, up from $6.47 a year earlier. The company reported it has raised its full-year sales forecast to a range of $11.5 billion to $11.7 billion, and lifted its earnings guidance to as high as $23.20 per share, citing continued strength in customer engagement and product mix.
Additionally, Ulta increased its projected comparable sales range for the year from 0% to 1% to 0% to 1.5%. Other elements of the outlook remained unchanged but pointed to consistent long-term investment.
For example, the company still expects to open approximately 60 net new stores in 2025, with another 40–45 remodels or relocations planned. Additionally, operating margin for the year is projected to remain in the 11.7% to 11.8% range.
Bellweather analysis
Ulta’s first-quarter performance offered early signals about broader consumer trends and category momentum in beauty retail. Comparable sales growth was driven by a 2.3% increase in average ticket and a 0.6% increase in transactions, which could indicate that customers are not only spending more but also continuing to shop in-store and online at consistent levels.
The company reported a 4.2% increase in gross profit to $1.11 billion, although the gross margin dipped slightly to 39.1%, largely due to increased store and supply chain costs, as well as lower other revenue. Selling, General & Administrative (SG&A) expenses rose 6.7% to $710.6 million, Ulta also reported, reflecting higher labor and operating costs.
For suppliers and manufacturers, one of the most notable signals was Ulta’s 11.3% year-over-year increase in merchandise inventory, which the company said was “primarily due to inventory to support new brand launches, strategic investments in key categories, and 56 net new stores.” This suggested a continued push toward assortment expansion, especially in growth categories such as skin care, prestige cosmetics, wellness, and hair care.
Ulta also added six new stores during the quarter and ended with 1,451 total locations. The continued retail expansion provides new physical shelf space and regional access points for both emerging and established brands.
Steelman acknowledged ongoing uncertainty in the macro environment but expressed confidence in the company’s positioning. “The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve,” she concluded in the press release. “We believe our model uniquely positions us to win.”
