At a time when many beauty retailers are being squeezed by margin pressures, inflation, and a drop in consumer spending, Ulta has managed to stay steady. But while the company continues to outperform on many fronts, a closer look at recent earnings suggests a business that is cautiously navigating a changing economic landscape.
A model of payment consistency
In an industry where delayed supplier payments have become more common, Ulta is doing something rare: paying its suppliers close to on time, month after month. Between May 2024 and April 2025, Ulta’s Days Beyond Terms (DBT), a metric used to track how late a company pays its suppliers, stayed firmly in the single digits or low teens, hovering mostly around 10.
The only months that saw even modest increases were January and February 2025, when its DBT ticked up slightly to 16 and 14, respectively, likely a result of the seasonal post-holiday cash flow crunch many retailers face. But Ulta quickly corrected its course, as its DBT dropped to 9 in March 2025 and 10 in April 2025.
This may seem like a small detail, but a high DBT is often the first indication of financial trouble, as it suggests a company could be having trouble managing its cash flow and paying bills on time. A low DBT, however, can be a signal of financial strength. And Ulta’s payment behavior shows they’re firmly in the latter category.
From a supplier’s perspective, this level of consistency builds trust. From a financial health standpoint, it suggests strong liquidity, proactive cash flow management, and effective internal planning and controls. When a retailer can keep its DBT stable through both peak and slow seasons, that’s a sign of maturity in their financial operations.
Minimal overdue payments
Looking at the company’s historical payment behavior over the last 12 months, Ulta again outperforms its peers. Between June 2024 and April 2025, only 1-3% of its payments were overdue by 61-90 days. Additionally, the number of payments that were 91+ days past due, which often indicates serious liquidity issues, never exceeded 6.13% during that 12-month period.
These figures reflect a well-run accounts payable operation and a finance team that understands the ripple effect of missed payments on suppliers. When companies are late with payments by 91+ days, it usually signals deeper structural challenges.
Ulta’s ability to keep payments as close to on time as possible shows they’re actively managing their accounts payable and not just reacting to cash demands.
Strong earnings, with nuance
Ulta’s payment performance is supported by solid financial results, but with a few important caveats. In Q1 2025, the company reported $2.8 billion in net sales – up 4.5% year over year – and raised its full-year outlook slightly.
Comparable sales also improved, increasing by 2.9%. This upward momentum suggests that Ulta’s strategy, bolstered by better staffing, refreshed inventory, and smarter marketing, is working well.
But the optimism is measured. According to a recent Retail Dive article, Ulta executives have acknowledged that consumer behavior remains unpredictable and that they’re being prudent with both financial planning and forecasting.
This pragmatism stems in part from the company’s performance in Q4 2024, when the company fell short of earnings expectations and issued conservative guidance for 2025. Ulta Beauty’s CEO Kecia Steelman called it a “transition year” as the company looks to recalibrate operations, strengthen customer engagement, and reaccelerate growth.
This context is important. Ulta is doing well, but not without a few bumps, and their leadership is treating those bumps seriously.
The bigger picture
In an environment where many companies are extending payment terms or defaulting altogether, Ulta’s reliable financial habits are a competitive edge. They help preserve supplier relationships, maintain a healthy inventory flow, and reduce risk across the value chain.
And this isn’t just about optics. When a company manages its finances well, it frees up resources to invest in technology, talent, marketing, and supply chain improvements. Ulta’s digital and in-store strategies are working in tandem, and that level of coordination requires financial breathing room.
Ulta may not be making splashy headlines for restructuring, rebranding, or bouncing back from bankruptcy. And that’s exactly the point. The company is proving that with the right financial discipline, customer-focused innovation, and operational consistency, it’s possible not just to survive in this market, but to lead it.
Still, caution remains the name of the game. Ulta’s next chapter will require continued investment in what’s working and honest assessment of what’s not. If they can maintain their financial health while adapting to shifts in consumer behavior, the company will remain one of the beauty sector’s most quietly compelling success stories.
