Ulta Beauty (ULTA) Q1 2025 Earnings
Includes a $0.01 per-share benefit from income tax accounting for stock-based compensation (vs. $0.10 benefit in the year-ago quarter)
How Did ULTA Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +5.27%.
Did ULTA Beat Earnings? Q1 2025 Results
Yes. Ulta Beauty reported Q1 2025 earnings of $6.70 a share on May 29, 2025, beating the $5.80 consensus estimate by 15.5%. Revenue was $2.8B against a $2.8B estimate.
Ulta Beauty delivered a strong first-quarter fiscal 2025 beat, with GAAP diluted EPS of $6.70 topping the $5.80 consensus by 15.50% and net sales of $2.85 billion coming in 2.02% ahead of estimates, up 4.5% from a year ago. The top-line gain was driven by 2.9% comparable sales growth, split between a 2.3% lift from higher average ticket and a 0.6% increase in transaction volume, alongside new store contributions. It is worth noting that reported GAAP EPS includes a $0.01 per-share benefit from income tax accounting for stock-based compensation, a meaningful step down from the $0.10 benefit recorded in the year-ago quarter; the lower tax benefit weighed on net income, which slipped to $305.05 million from $313.11 million despite the sales growth. Shares rallied sharply after the report, with analysts at Oppenheimer and Deutsche Bank raising their price targets. Looking ahead, Ulta lifted the top end of its fiscal 2025 net sales guidance to $11.70 billion and raised its full-year diluted EPS range to $22.65 to $23.20, while cautioning that consumer demand could shift in an uncertain macro environment.
- Comparable sales increased 2.9%, driven by 2.3% increase in average ticket and 0.6% increase in transactions
- New store contributions to net sales growth
- Lower inventory shrink partially offsetting gross margin pressures
- Skincare and wellness category grew to 25% of sales from 23%, fragrance to 11% from 10%
- Cosmetics share of sales declined to 40% from 42%
“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.”
Ulta Beauty CEO, on the earnings call
What Was Ulta Beauty's Outlook in Q1 2025?
Ulta Beauty updated its fiscal 2025 outlook, raising the top end of net sales guidance to $11.5–$11.7 billion (from $11.5–$11.6 billion) and comparable sales to 0%–1.5% (from 0%–1%). Full-year diluted EPS guidance was raised to $22.65–$23.20 (from $22.50–$22.90). Operating margin guidance of 11.7%–11.8%, approximately 60 net new stores, 40–45 remodel/relocation projects, approximately $900 million in share repurchases, capital expenditures of $425–$500 million, approximately $6 million in interest income, an effective tax rate of approximately 24.5%, and depreciation and amortization of $290–$300 million were all maintained. The company noted that the outlook reflects uncertainty around how consumer demand could evolve in the current fluid operating environment.
ULTA YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.8B | $2.7B | +4.5% |
| Gross Profit | $1.1B | $1.1B | +4.2% |
| Operating Income | $401.8M | $403.9M | −0.5% |
| Net Income | $305.1M | $313.1M | −2.6% |
Figures from SEC filings and company reports. Not investment advice.