EX-99.12ulta-20251204xex99d1.htmEX-99.1
Exhibit 99.1
ULTA BEAUTY ANNOUNCES THIRD QUARTER FISCAL 2025 RESULTS
Net Sales Increased 12.9% to $2.9 Billion Compared to $2.5 Billion in the Prior Year Quarter
Comparable Sales Increased 6.3%
Net Income was $230.9 Million or $5.14 Per Diluted Share
Company Increases Fiscal 2025 Guidance
Bolingbrook, IL – December 4, 2025 – 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
$
5.14
$
17.65
$
16.93
“T1Our 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, T2with notable strength in ecommerce,” said Kecia Steelman, president and CEO. “As we look ahead to the all-important holiday season, T3we 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
●
Net sales increased 12.9% to $2.9 billion compared to $2.5 billion, primarily due to increased comparable sales, the acquisition of Space NK, and net new store contribution.
●
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 6.3% compared to 0.6%, driven by a 3.8% increase in average ticket and a 2.4% increase in transactions.
●
Gross profit increased 14.9% to $1.2 billion compared to $1.0 billion. T4As a percentage of net sales, gross profit increased to 40.4% compared to 39.7%, primarily due to lower
inventory shrink and higher merchandise margin, partially offset by unfavorable channel mix.
●
Selling, general and administrative (SG&A) expenses increased 23.3% to $840.9 million compared to $682.3 million. T5As a percentage of net sales, SG&A expenses increased to 29.4% compared to 27.0%, primarily due to higher incentive compensation, store payroll and benefits, store expenses, and amortization of cloud-based software investments.
●
Operating income was $309.4 million, or 10.8% of net sales, compared to $318.5 million, or 12.6% of net sales.
●
The effective tax rate was 24.1% compared to 24.4%.
●
Net income was $230.9 million compared to $242.2 million.
●
Diluted earnings per share was flat at $5.14.
First Nine Months of Fiscal 2025 Compared to First Nine Months of Fiscal 2024
●
Net sales increased 8.8% to $8.5 billion compared to $7.8 billion, primarily due to increased comparable sales, the acquisition of Space NK, and net new store contribution.
●
Comparable sales increased 5.2% compared to 0.3%, driven by a 3.0% increase in average ticket and a 2.2% increase in transactions.
●
Gross profit increased 10.1% to $3.4 billion compared to $3.1 billion. As a percentage of net sales, gross profit increased to 39.6% compared to 39.1%, primarily due to lower inventory shrink and higher merchandise margin, partially offset by deleverage of other revenue.
●
SG&A expenses increased 15.1% to $2.3 billion compared to $2.0 billion. As a percentage of net sales, SG&A expenses increased to 27.0% compared to 25.5%, primarily due to deleverage of store payroll and benefits, higher incentive compensation, and higher store expenses.
●
Operating income was $1.1 billion, or 12.4% of net sales, compared to $1.0 billion, or 13.4% of net sales.
●
The effective tax rate was 24.4% compared to 23.9%.
●
Net income was $796.8 million compared to $807.8 million.
●
Diluted earnings per share increased 4.3% to $17.65, compared to $16.93 which included a $0.10 benefit due to income tax accounting for stock-based compensation.
Balance Sheet
Cash and cash equivalents at the end of the third quarter of fiscal 2025 totaled $204.9 million.
T6Merchandise 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
T7During 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
G1Net sales
$12.0 billion to $12.1 billion
Approximately $12.3 billion
G2Comparable sales
2.5% to 3.5%
4.4% to 4.7%
G3New stores, net
approximately 63
no change
G4Store remodel and relocation projects
43-48
no change
G5Operating margin
11.9% to 12.0%
12.3% to 12.4%
G6Diluted earnings per share
$23.85 to $24.30
$25.20 to $25.50
G7Share repurchases
approximately $900 million
no change
G8Interest expense, net
approximately $4 million
no change
G9Effective tax rate
approximately 24.5%
no change
G10Capital expenditures
$425 million to $500 million
no change
G11Depreciation 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:
●
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, T8especially 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, including our international expansion in Mexico, the Middle East, the U.K., and Ireland;
●
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 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;
●
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
November 1,
November 2,
2025
2024
(Unaudited)
(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
$
5.16
Diluted
$
5.14
$
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)
(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
2025
2024
(Unaudited)
(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
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)
(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
Number of stores
Total stores
at beginning of the
opened during the
closed during the
open at end
Fiscal 2025
quarter
quarter
quarter
of the quarter (1)
1st Quarter
1,445
6
0
1,451
2nd Quarter
1,451
24
2
1,473
3rd Quarter
1,473
28
1
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)
1st Quarter
15,110,170
53,037
0
15,163,207
2nd Quarter
15,163,207
212,267
21,926
15,353,548
3rd 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
41%
41%
Skincare and wellness
24%
23%
Haircare
19%
20%
Fragrance
11%
10%
Services
3%
4%
Other
2%
2%
100%
100%
39 Weeks Ended
November 1,
November 2,
2025
2024
Cosmetics
40%
41%
Skincare and wellness
24%
24%
Haircare
19%
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 | 0 | 0 |
| 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 | 2 | 2 | 2 |
| Buybacks share repurchase, buyback program | 4 | — | 2 |
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