EX-99.12ulta-20250529xex99d1.htmEX-99.1
Exhibit 99.1
ULTA BEAUTY ANNOUNCES FIRST QUARTER FISCAL 2025 RESULTS
Net Sales Increased 4.5% to $2.8 Billion
Comparable Sales Increased 2.9%
Net Income of $305.1 Million or $6.70 Per Diluted Share
Company Updates Fiscal 2025 Guidance
Bolingbrook, IL – May 29, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced financial results for the thirteen-week period (“first quarter”) ended May 3, 2025.
13 Weeks Ended
May 3,
May 4,
(Dollars in millions, except per share data)
2025
2024
Net sales
$
2,848.4
$
2,725.8
Comparable sales
2.9%
1.6%
Gross profit (as a percentage of net sales)
39.1%
39.2%
Selling, general and administrative expenses
$
710.6
$
665.9
Operating income (as a percentage of net sales)
14.1%
14.7%
Diluted earnings per share
$
6.70
$
6.47
New store openings, net
6
10
“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth," said Kecia Steelman, president and chief executive officer. "The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve. We believe our model uniquely positions us to win, and we will continue to focus on serving our guests while staying agile as we move through the year."
First Quarter of Fiscal 2025 Compared to First Quarter of Fiscal 2024
●
Net sales increased 4.5% to $2.8 billion compared to $2.7 billion, primarily due to increased comparable sales and new store contribution, partially offset by a decrease in other revenue.
●
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 2.9% compared to the first quarter of fiscal 2024, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions.
●
Gross profit increased 4.2% to $1.11 billion compared to $1.07 billion. As a percentage of net sales, gross profit decreased to 39.1% compared to 39.2%, primarily due to deleverage of store and supply chain fixed costs and lower other revenue, partially offset by lower inventory shrink.
●
Selling, general and administrative (“SG&A”) expenses increased 6.7% to $710.6 million compared to $665.9 million. As a percentage of net sales, SG&A expenses increased to 24.9% compared to 24.4%, primarily due to deleverage of store payroll and benefits and store expenses, partially offset by leverage of corporate overhead.
●
Operating income was $401.8 million, or 14.1% of net sales, compared to $400.9 million, or 14.7% of net sales.
●
The tax rate increased to 24.6% compared to 23.2%, primarily due to a reduced benefit from income tax accounting for stock-based compensation.
●
Net income was $305.1 million compared to $313.1 million.
●
Diluted earnings per share was $6.70, including a $0.01 benefit due to income tax accounting for stock-based compensation, compared to $6.47, 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 first quarter of fiscal 2025 totaled $454.6 million.
Merchandise inventories, net at the end of first quarter of fiscal 2025 increased 11.3% to $2.1 billion compared to $1.9 billion at the end of the first quarter of fiscal 2024. The increase was primarily due to inventory to support new brand launches, strategic investments in key categories, and 56 net new stores.
Share Repurchase Program
During the first quarter of fiscal 2025, the Company repurchased 986,733 shares of its common stock at a cost of $358.7 million. As of May 3, 2025, $2.3 billion remained available under the $3.0 billion share repurchase program announced in October 2024.
Store Update
During the first quarter of fiscal 2025, the Company opened six new stores, remodeled four stores, and relocated two stores. At the end of the first quarter of fiscal 2025 the Company operated 1,451 stores totaling 15.2 million square feet.
Fiscal 2025 Outlook
The Company has updated its outlook for fiscal 2025.
Prior Fiscal 2025 Outlook
Updated Fiscal 2025 Outlook
G1Net sales
$11.5 billion to $11.6 billion
$11.5 billion to $11.7 billion
G2Comparable sales
0% to 1%
0% to 1.5%
G3New stores, net
approximately 60
no change
G4Remodel and relocation projects
40-45
no change
G5Operating margin
11.7% to 11.8%
no change
G6Diluted earnings per share
$22.50 to $22.90
$22.65 to $23.20
Share repurchases
approximately $900 million
no change
Interest income
approximately $6 million
no change
Effective tax rate
approximately 24.5%
no change
G7Capital expenditures
$425 million to $500 million
no change
G8Depreciation and amortization expense
$290 million to $300 million
no change
Conference Call Information
A conference call to discuss first quarter of fiscal 2025 results is scheduled for today, May 29, 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://q1-2025-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 approximately two hours following the live call for a period of 30 days.
About Ulta Beauty
At Ulta Beauty (NASDAQ: ULTA), the possibilities are beautiful. Ulta Beauty is the largest specialty U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. In 1990, the Company reinvented the beauty retail experience by offering a new way to shop for beauty – bringing together All Things Beauty. All in One Place®. Today, Ulta Beauty operates 1,451 retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials, and social content. 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:
●
macroeconomic 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;
●
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 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
May 3,
May 4,
2025
2024
(Unaudited)
(Unaudited)
Net sales
$
2,848,367
100.0%
$
2,725,848
100.0%
Cost of sales
1,734,148
60.9%
1,656,068
60.8%
Gross profit
1,114,219
39.1%
1,069,780
39.2%
Selling, general and administrative expenses
710,613
24.9%
665,913
24.4%
Pre-opening expenses
1,829
0.1%
2,919
0.1%
Operating income
401,777
14.1%
400,948
14.7%
Interest income, net
(3,547)
(0.1%)
(6,900)
(0.3%)
Income before income taxes and equity net loss of affiliate
405,324
14.2%
407,848
15.0%
Income tax expense
99,644
3.5%
94,735
3.5%
Income before equity net loss of affiliate
305,680
10.7%
313,113
11.5%
Equity net loss of affiliate
628
0.0%
—
0.0%
Net income
$
305,052
10.7%
$
313,113
11.5%
Net income per common share:
Basic
$
6.72
$
6.51
Diluted
$
6.70
$
6.47
Weighted average common shares outstanding:
Basic
45,362
48,125
Diluted
45,508
48,381
Exhibit 2
Ulta Beauty, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
May 3,
February 1,
May 4,
2025
2025
2024
(Unaudited)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
454,629
$
703,201
$
524,596
Receivables, net
225,146
223,334
203,463
Merchandise inventories, net
2,121,519
1,968,214
1,906,040
Prepaid expenses and other current assets
138,396
129,113
126,529
Prepaid income taxes
—
4,946
—
Total current assets
2,939,690
3,028,808
2,760,628
Property and equipment, net
1,251,287
1,239,295
1,195,658
Operating lease assets
1,658,834
1,609,870
1,561,767
Goodwill
10,870
10,870
10,870
Other intangible assets, net
—
204
434
Deferred compensation plan assets
47,467
47,951
45,718
Other long-term assets
78,541
64,695
56,864
Total assets
$
5,986,689
$
6,001,693
$
5,631,939
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
537,518
$
563,761
$
463,777
Accrued liabilities
346,960
380,241
332,692
Deferred revenue
462,843
500,585
398,729
Current operating lease liabilities
285,764
288,114
284,815
Accrued income taxes
130,765
46,777
92,711
Total current liabilities
1,763,850
1,779,478
1,572,724
Non-current operating lease liabilities
1,689,439
1,635,120
1,607,953
Deferred income taxes
46,013
42,593
89,556
Other long-term liabilities
57,084
56,149
60,963
Total liabilities
3,556,386
3,513,340
3,331,196
Commitments and contingencies
Total stockholders’ equity
2,430,303
2,488,353
2,300,743
Total liabilities and stockholders’ equity
$
5,986,689
$
6,001,693
$
5,631,939
Exhibit 3
Ulta Beauty, Inc.
Consolidated Statements of Cash Flows
(In thousands)
13 Weeks Ended
May 3,
May 4,
2025
2024
(Unaudited)
(Unaudited)
Operating activities
Net income
$
305,052
$
313,113
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
72,033
64,739
Non-cash lease expense
91,105
77,938
Deferred income taxes
3,420
3,635
Stock-based compensation expense
11,418
10,082
Loss on disposal of property and equipment
892
2,975
Equity net loss of affiliate
628
—
Change in operating assets and liabilities:
Receivables
(1,812)
4,476
Merchandise inventories
(153,305)
(163,904)
Prepaid expenses and other current assets
(9,283)
(10,931)
Income taxes
88,934
85,652
Accounts payable
(24,920)
(74,069)
Accrued liabilities
(32,716)
(43,846)
Deferred revenue
(37,742)
(37,862)
Operating lease liabilities
(88,100)
(83,500)
Other assets and liabilities
(5,583)
10,842
Net cash provided by operating activities
220,021
159,340
Investing activities
Capital expenditures
(79,031)
(91,024)
Other investments
(7,346)
(2,563)
Net cash used in investing activities
(86,377)
(93,587)
Financing activities
Repurchase of common shares
(369,786)
(289,431)
Stock options exercised
481
8,913
Purchase of treasury shares
(12,911)
(23,283)
Debt issuance costs
—
(3,950)
Net cash used in financing activities
(382,216)
(307,751)
Net decrease in cash and cash equivalents
(248,572)
(241,998)
Cash and cash equivalents at beginning of period
703,201
766,594
Cash and cash equivalents at end of period
$
454,629
$
524,596
Exhibit 4
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
Fiscal 2025
quarter
quarter
quarter
end of the quarter
1st Quarter
1,445
6
0
1,451
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
Exhibit 5
Ulta Beauty, Inc.
Sales by Category
The following table sets forth the approximate percentage of net sales by primary category:
13 Weeks Ended
May 3,
May 4,
2025
2024
Cosmetics
40%
42%
Skincare and wellness
25%
23%
Haircare
18%
19%
Fragrance
11%
10%
Services
4%
4%
Other
2%
2%
100%
100%
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 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 2 | — | — |
| Buybacks share repurchase, buyback program | 3 | — | — |
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.
Source: SEC EDGAR · public domain · Highlights by Palanor