Ulta Beauty Q2 sales rise 9.3%; lifts full-year forecast
Ulta Beauty reported a strong second quarter amid growth across all its major categories and an increase in traffic — in-store and online.
The beauty giant, which in July announced it had acquired British beauty retailer Space NK, also raised its annual forecast despite “near-term uncertainty.”
Ulta reported that its net income rose 3.3% to $260.88 million, or $5.78 per share, in the quarter ended Aug. 2, up from $252.6 million, or $5.30 per share, in the year-ago period. Analysts had expected earnings of $5.10 per share.
Net sales rose 9.3% to $2.79 billion, topping estimates of $2.67 billion. Ulta attributed the increase primarily to increased comparable sales, the acquisition of Space NK, and new store contribution. Fragrance remained the strongest-performing category, delivering robust double-digit growth.
Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 6.7%, more than double analysts’ expectations, driven by a 3.7% increase in transactions and a 2.9% increase in average ticket.
During the second quarter, Ulta opened 24 stores, relocated two stores, remodeled five stores and closed two stores. During the first six months of fiscal 2025, the company opened 30 stores, relocated four stores, remodeled nine stores, and closed two stores. At the end of the second quarter, Ulta operated 1,473 Ulta Beauty locations across the U.S. (excludes the 83 stores in the U.K. and Ireland operated by Space NK.)
“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth," said Kecia Steelman, president and CEO. “Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability. As we look to the future, we remain committed to executing our Ulta Beauty Unleashed strategy and strengthening our operating model.”
On the company’s earnings call, Steelman said that Space NK will operate as a stand-alone subsidiary, headed by its current team, including CEO Andy Lightfoot.
Steelman also addressed the end of the Ulta Beauty at Target shop-in-shop partnership when the current agreement concludes in August 2026. She noted that Ulta’s royalty revenue from the partnership in fiscal 2024 was well below one percent of net sales.
In other moves, Ulta is set to launch its third-party marketplace during the third quarter.
[READ MORE: Ulta Beauty to launch third-party marketplace]
For the full year, Ulta now expects net sales of $12 billion to $12.1 billion, up from its previous range of $11.5 billion and $11.7 billion. It expects earnings per share of $23.85 to $24.30, up from its previous range of $22.65 to $23.20.
“Our outlook for the remainder of the year reflects both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year,” said Steelman. “While near-term uncertainty persists, we’re staying focused on what we can control and on executing with excellence to deliver our uniquely Ulta Beauty experience.”
