Ulta Beauty (ULTA) Q2 2025 Earnings
Includes a $0.03 benefit due to income tax accounting for stock-based compensation
How Did ULTA Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +3.63%.
Did ULTA Beat Earnings? Q2 2025 Results
Yes. Ulta Beauty reported Q2 2025 earnings of $5.78 a share on Aug 28, 2025, beating the $5.04 consensus estimate by 14.6%. Revenue was $2.8B against a $2.7B estimate.
Ulta Beauty delivered a standout second quarter of fiscal 2025, beating Wall Street expectations on both the top and bottom lines as robust consumer demand and a transformative acquisition powered results well ahead of forecasts. Net sales climbed 9.3% year over year to $2.79 billion, beating the $2.67 billion consensus by 4.25%, with comparable sales growth of 6.7% doing much of the heavy lifting as shoppers increased both their visit frequency and average spend. GAAP diluted EPS came in at $5.78, including a $0.03 benefit from income tax accounting for stock-based compensation, beating the $5.04 consensus estimate by 14.61%. The quarter's momentum was amplified by the July completion of the Space NK acquisition, which added 83 stores across the U.K. and Ireland and broadened Ulta's international footprint, even as analysts had already been raising price targets ahead of the print in anticipation of strong results. Management raised its full-year outlook materially, now guiding for net sales of $12.0 billion to $12.1 billion and GAAP diluted EPS of $23.85 to $24.30, while cautioning that second-half consumer demand trends remain a key variable to watch.
- 6.7% comparable sales growth driven by 3.7% increase in transactions and 2.9% increase in average ticket
- Growth across all major product categories drove market share gains
- Lower inventory shrink improved gross margin
- Higher merchandise margin contributed to gross profit expansion
- Share repurchases contributed to 9.1% diluted EPS growth despite only 3.3% net income growth
“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth. Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability. I am proud of the Ulta Beauty team's collective efforts to deliver great guest experiences in stores and across our digital channels.”
Ulta Beauty CEO, on the earnings call
What Was Ulta Beauty's Outlook in Q2 2025?
Ulta Beauty raised its fiscal 2025 outlook. Net sales are now expected to be $12.0 billion to $12.1 billion (up from $11.5 billion to $11.7 billion). Comparable sales growth is expected at 2.5% to 3.5% (up from 0% to 1.5%). Operating margin is expected at 11.9% to 12.0% (up from 11.7% to 11.8%). Diluted EPS is expected at $23.85 to $24.30 (up from $22.65 to $23.20). Net new stores expected at approximately 63 (up from approximately 60). Interest expense now expected at approximately $4 million (previously approximately $6 million of interest income). Share repurchases remain at approximately $900 million. Capital expenditures remain at $425 million to $500 million. Effective tax rate remains at approximately 24.5%. Depreciation and amortization expected at approximately $300 million. The company noted caution around how consumer demand may evolve in the second half of the year.
ULTA YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.8B | $2.6B | +9.3% |
| Gross Profit | $1.1B | $978.1M | +11.6% |
| Operating Income | $344.9M | $333.4M | +3.5% |
| Net Income | $260.9M | $252.6M | +3.3% |
Figures from SEC filings and company reports. Not investment advice.