EX-99.12ulta-20260312xex99d1.htmEX-99.1
Exhibit 99.1
ULTA BEAUTY ANNOUNCES FOURTH QUARTER AND FISCAL 2025 RESULTS AND PROVIDES FISCAL 2026 GUIDANCE
●
T1Net sales increased 11.8% and 9.7% for the fourth quarter and fiscal year, respectively
●
Comparable sales increased 5.8% and 5.4% for the fourth quarter and fiscal year, respectively
●
Diluted EPS was $8.01 and $25.64 for the fourth quarter and fiscal year, respectively
●
T2Returned $890.5 million of capital to shareholders through planned share repurchases for the fiscal year
●
T3Provided fiscal 2026 guidance for net sales growth of 6.0% to 7.0% and diluted EPS growth of 9.4% to 11.4%
Bolingbrook, IL – March 12, 2026 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced consolidated financial results for the thirteen-week period (“fourth quarter”) and fifty-two-week period (“fiscal year”) ended January 31, 2026, compared to the same periods ended February 1, 2025, respectively.
“The Ulta Beauty team closed the year with momentum, delivering strong fourth quarter and full-year sales and continued market share gains. Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies,” said Kecia Steelman, president and chief executive officer. “T4I am proud of how our team is embracing and executing our Ulta Beauty Unleashed strategy. Looking ahead, we are well positioned for sustainable, profitable growth in 2026 and beyond and are excited to build on our successes to extend our position as the unmatched beauty and wellness destination for all guests across all ages and life stages.”
13 Weeks Ended
Fiscal Year Ended
January 31,
February 1,
January 31,
February 1,
(Dollars in millions, except per share data)
2026
2025
2026
2025
Net sales
$
3,898.4
$
3,487.6
$
12,392.8
$
11,295.7
Comparable sales
5.8%
1.5%
5.4%
0.7%
Gross profit (as a percentage of net sales)
38.1%
38.2%
39.1%
38.8%
Selling, general and administrative expenses
$
1,003.1
$
815.6
$
3,296.4
$
2,808.6
Operating income (as a percentage of net sales)
12.2%
14.8%
12.4%
13.9%
Diluted earnings per share
$
8.01
$
8.46
$
25.64
$
25.34
Fourth Quarter of Fiscal 2025 Compared to Fourth Quarter of Fiscal 2024
●
Net sales increased 11.8% to $3.9 billion, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores.
●
Comparable sales increased 5.8%, driven by a 4.2% increase in average ticket and a 1.6% increase in transactions.
●
Gross profit increased 11.2% to $1.5 billion. As a percentage of net sales, gross profit decreased to 38.1% compared to 38.2%, primarily due to unfavorable channel mix, deleverage of store fixed expenses, and deleverage of other revenue, mostly offset by lower inventory shrink and supply chain efficiencies.
●
T5Selling, general and administrative (SG&A) expenses increased 23.0% to $1.0 billion. As a percentage of net sales, SG&A expenses increased to 25.7% compared to 23.4%, primarily due to higher corporate overhead due to strategic enterprise investments, higher advertising expenses, and higher incentive compensation.
●
T6Operating income was $476.9 million, or 12.2% of net sales.
●
Diluted earnings per share was $8.01.
Full Year of Fiscal 2025 Compared to Full Year of Fiscal 2024
●
Net sales increased 9.7% to $12.4 billion, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores.
●
Comparable sales increased 5.4%, driven by a 3.3% increase in average ticket and a 2.0% increase in transactions.
●
Gross profit increased 10.4% to $4.8 billion. As a percentage of net sales, gross profit increased to 39.1% compared to 38.8%, primarily due to lower inventory shrink and higher merchandise margin, partially offset by adverse channel mix, deleverage of other revenue, and deleverage of store fixed expenses.
●
SG&A expenses increased 17.4% to $3.3 billion. As a percentage of net sales, SG&A expenses increased to 26.6% compared to 24.9%, primarily due to higher incentive compensation, higher store payroll and benefits, and higher corporate overhead due to strategic enterprise investments.
●
Operating income was $1.5 billion, or 12.4% of net sales.
●
Diluted earnings per share increased 1.2% to $25.64.
Balance Sheet and Capital Deployment
Cash and cash equivalents at the end of fiscal 2025 were $424.2 million. Short-term investments at the end of fiscal 2025 were $70.0 million. Short-term debt at the end of fiscal 2025 was $62.3 million.
Merchandise inventories, net at the end of fiscal 2025 increased 10.8% to $2.2 billion. The increase was primarily due to inventory to support new brand launches, the acquisition of Space NK, and 60 net new Ulta Beauty stores.
T7During fiscal 2025, the Company invested $434.8 million in capital expenditures to support new stores, relocations, and remodels, investments in information technology systems, and supply chain optimization.
During fiscal 2025, the Company repurchased 2.0 million shares of its common stock at a cost of $890.5 million, excluding excise taxes. As of January 31, 2026, $1.8 billion remained available under the $3.0 billion share repurchase program announced in October 2024.
Fiscal 2026 Outlook
Based on current estimates, the Company anticipates the following in fiscal 2026:
Fiscal 2026 Outlook
G1Net sales growth
6% to 7%
G2Comparable sales growth
2.5% to 3.5%
G3Operating income growth
6% to 9%
G4Diluted earnings per share
$28.05 to $28.55
G5Capital expenditures
$400 million to $450 million
Conference Call Information
A conference call to discuss fourth quarter of fiscal 2025 results is scheduled for today, March 12, 2026, at 4:30 p.m. Eastern Time / 3:30 p.m. Central Time. During the conference call, a related presentation will be webcast live. Investors and analysts who are interested in participating in the call are invited to register for the live event at https://q4-2025-ulta-beauty-earnings-conference-call.open-exchange.net/.
A copy of the presentation and a replay of the webcast will be available and archived for a limited time on the company's Investor Relations website at https://www.ulta.com/investor.
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 more than 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 its subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland, its joint venture in Mexico, and its franchise in the Middle East. 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 and/or future labor, transportation, and shipping cost pressures (including future uncertain impacts);
●
T8changes 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 plans;
●
the possibility that we may be unable to compete effectively in our highly competitive markets;
●
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;
●
our ability to successfully deploy artificial intelligence (“AI”) and other emerging technologies, or our failure to utilize such technologies in an effective, ethical, and legal manner;
●
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 possibility that we will not realize the anticipated benefits of the acquisition of Space NK for any reason, including due to challenges with integration and/or achieving anticipated acquisition synergies;
●
the failure to maintain satisfactory compliance with applicable privacy and data protection laws and regulations, including as a result of our international expansion;
●
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;
●
our ability to execute our international expansion plans and navigate the market, operational, regulatory, and compliance risks that could accompany international growth;
●
epidemics, pandemics or natural disasters, which could negatively impact sales;
●
the possibility that new store openings and/or existing locations could be impacted by developer or co-tenant issues or other factors outside of our control;
●
our ability to attract and retain key executive personnel;
●
the impact of climate change on our business operations and/or supply chain;
●
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:
Natalie Navarre
Vice President, Public Relations & Social Marketing
nnavarre@ulta.com
Exhibit 1
Ulta Beauty, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
13 Weeks Ended
January 31,
February 1,
2026
2025
(Unaudited)
(Unaudited)
Net sales
$
3,898,361
100.0%
$
3,487,619
100.0%
Cost of sales
2,414,717
61.9%
2,153,967
61.8%
Gross profit
1,483,644
38.1%
1,333,652
38.2%
Selling, general and administrative expenses
1,003,141
25.7%
815,599
23.4%
Pre-opening expenses
3,561
0.1%
1,732
0.0%
Operating income
476,942
12.2%
516,321
14.8%
Interest expense (income), net
2,624
0.1%
(1,994)
(0.1%)
Income before income taxes and equity net loss of affiliate
474,318
12.2%
518,315
14.9%
Income tax expense
115,994
3.0%
125,045
3.6%
Income before equity net loss of affiliate
358,324
9.2%
393,270
11.3%
Equity net loss of affiliate
1,647
0.0%
—
0.0%
Net income
$
356,677
9.1%
$
393,270
11.3%
Net income per common share:
Basic
$
8.05
$
8.50
Diluted
$
8.01
$
8.46
Weighted average common shares outstanding:
Basic
44,320
46,270
Diluted
44,521
46,476
Exhibit 2
Ulta Beauty, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Fiscal Year Ended
January 31,
February 1,
2026
2025
(Unaudited)
Net sales
$
12,392,820
100.0%
$
11,295,654
100.0%
Cost of sales
7,547,596
60.9%
6,908,401
61.2%
Gross profit
4,845,224
39.1%
4,387,253
38.8%
Selling, general and administrative expenses
3,296,411
26.6%
2,808,592
24.9%
Pre-opening expenses
15,821
0.1%
13,689
0.1%
Operating income
1,532,992
12.4%
1,564,972
13.9%
Interest expense (income), net
1,787
(0.0%)
(15,094)
(0.1%)
Income before income taxes and equity net loss of affiliate
1,531,205
12.4%
1,580,066
14.0%
Income tax expense
373,869
3.0%
378,948
3.4%
Income before equity net loss of affiliate
1,157,336
9.3%
1,201,118
10.6%
Equity net loss of affiliate
3,857
0.0%
—
0.0%
Net income
$
1,153,479
9.3%
$
1,201,118
10.6%
Net income per common share:
Basic
$
25.72
$
25.44
Diluted
$
25.64
$
25.34
Weighted average common shares outstanding:
Basic
44,842
47,207
Diluted
44,991
47,404
Exhibit 3
Ulta Beauty, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
January 31,
February 1,
2026
2025
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
424,243
$
703,201
Short-term investments
70,000
—
Receivables, net
296,217
223,334
Merchandise inventories, net
2,181,127
1,968,214
Prepaid expenses and other current assets
169,361
129,113
Prepaid income taxes
3,198
4,946
Total current assets
3,144,146
3,028,808
Property and equipment, net
1,434,062
1,239,295
Operating lease assets
1,813,074
1,609,870
Goodwill
226,421
10,870
Other intangible assets, net
203,288
204
Deferred compensation plan assets
53,391
47,951
Other long-term assets
124,912
64,695
Total assets
$
6,999,294
$
6,001,693
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
685,887
$
563,761
Accrued liabilities
551,380
380,241
Deferred revenue
582,378
500,585
Current operating lease liabilities
306,671
288,114
Accrued income taxes
35,739
46,777
Short-term debt
62,287
—
Total current liabilities
2,224,342
1,779,478
Non-current operating lease liabilities
1,813,103
1,635,120
Deferred income taxes
98,766
42,593
Other long-term liabilities
59,632
56,149
Total liabilities
4,195,843
3,513,340
Commitments and contingencies
Total stockholders’ equity
2,803,451
2,488,353
Total liabilities and stockholders’ equity
$
6,999,294
$
6,001,693
Exhibit 4
Ulta Beauty, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Fiscal Year Ended
January 31,
February 1,
2026
2025
(Unaudited)
Operating activities
Net income
$
1,153,479
$
1,201,118
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
300,772
267,042
Non-cash lease expense
351,281
310,636
Deferred income taxes
(3,238)
(43,328)
Stock-based compensation expense
37,426
42,787
Loss on disposal of property and equipment
10,998
11,566
Equity net loss of affiliate
3,857
—
Change in operating assets and liabilities:
Receivables
(71,375)
(15,395)
Merchandise inventories
(135,801)
(226,078)
Prepaid expenses and other current assets
(25,607)
(13,515)
Income taxes
(9,199)
34,772
Accounts payable
89,061
30,297
Accrued liabilities
108,201
6,303
Deferred revenue
73,358
63,994
Operating lease liabilities
(352,836)
(333,835)
Other assets and liabilities
(27,597)
2,241
Net cash provided by operating activities
1,502,780
1,338,605
Investing activities
Purchases of short-term investments
(70,000)
—
Capital expenditures
(434,829)
(374,458)
Acquisitions, net of cash acquired
(386,813)
—
Other investments
(39,704)
(8,631)
Net cash used in investing activities
(931,346)
(383,089)
Financing activities
Borrowings from short-term debt
2,214,888
199,700
Payments on short-term debt
(2,182,316)
(199,700)
Repurchase of common shares
(901,388)
(1,003,328)
Stock options exercised
32,562
12,339
Purchase of treasury shares
(13,649)
(23,761)
Debt issuance costs
(763)
(4,159)
Net cash used in financing activities
(850,666)
(1,018,909)
Effect of exchange rate changes on cash and cash equivalents
274
—
Net decrease in cash and cash equivalents
(278,958)
(63,393)
Cash and cash equivalents at beginning of year
703,201
766,594
Cash and cash equivalents at end of year
$
424,243
$
703,201
Exhibit 5
Ulta Beauty, Inc.
Store Update (Company-Operated)
The following table presents store activities during the fourth quarter of fiscal 2025:
United States
International (Company-operated)
Opened
5
2
Closed
—
—
Net
5
2
Relocated
—
1
Remodeled
18
—
The following table presents store activities during fiscal 2025:
United States
International (Company-operated)
Opened
63
4
Closed
3
1
Net
60
3
Relocated
4
2
Remodeled
42
—
The following table presents the number of stores owned at the end of fiscal 2025:
United States
International (Company-operated)
Number of stores
1,505
86
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
January 31,
February 1,
2026
2025
Cosmetics
35%
36%
Skincare and wellness
24%
23%
Haircare
19%
19%
Fragrance
17%
17%
Services
3%
3%
Other
2%
2%
100%
100%
Fiscal Year Ended
January 31,
February 1,
2026
2025
Cosmetics
38%
39%
Skincare and wellness
24%
23%
Haircare
19%
19%
Fragrance
13%
13%
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 | 2 | 2 | 1 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 2 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | 1 | 1 |
| Buybacks share repurchase, buyback program | 2 | — | 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