Ulta Beauty (ULTA) Q3 2025 Earnings
How Did ULTA Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +0.56%.
Did ULTA Beat Earnings? Q3 2025 Results
Yes. Ulta Beauty reported Q3 2025 earnings of $5.14 a share on Dec 4, 2025, beating the $4.60 consensus estimate by 11.7%. Revenue was $2.9B against a $2.7B estimate.
Ulta Beauty posted a sharply stronger-than-expected third quarter of fiscal 2025, with GAAP diluted EPS of $5.14 beating the $4.60 consensus by 11.73% and revenue of $2.86 billion topping estimates by 5.70%, rising 12.9% year over year. The headline driver was a 6.3% comparable sales gain, a marked acceleration from the 0.6% posted in the prior-year quarter, fueled by strength across ecommerce and all product categories, alongside a contribution from the recently acquired Space NK business and 63 net new store openings. Gross margin widened 70 basis points to 40.4%, aided by lower inventory shrink and higher merchandise margin, though a 23.3% surge in SG&A expenses, reflecting higher incentive compensation and store payroll, compressed operating income to $309.42 million. Encouraged by the momentum, management raised full-year guidance meaningfully, lifting the net sales outlook to approximately $12.30 billion and GAAP diluted EPS to $25.20-$25.50, compared with prior ranges of $12.00-$12.10 billion and $23.85-$24.30, reinforcing confidence in Ulta's operating model heading into the holiday season.
- Comparable sales increased 6.3%, driven by 3.8% increase in average ticket and 2.4% increase in transactions
- Growth across all categories and channels, with notable strength in ecommerce
- Acquisition of Space NK contributed to net sales growth
- 63 net new stores contributed to revenue growth
- Lower inventory shrink and higher merchandise margin improved gross profit margin
- Exciting assortment newness and bold marketing efforts resonating with guests
- Market share gains achieved during the quarter
“Our 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, with notable strength in ecommerce.”
Ulta Beauty CEO, on the earnings call
What Was Ulta Beauty's Outlook in Q3 2025?
Ulta Beauty raised its fiscal 2025 guidance: net sales now expected at approximately $12.3 billion (previously $12.0-$12.1 billion), comparable sales growth of 4.4%-4.7% (previously 2.5%-3.5%), operating margin of 12.3%-12.4% (previously 11.9%-12.0%), and diluted EPS of $25.20-$25.50 (previously $23.85-$24.30). Approximately 63 net new stores, share repurchases of approximately $900 million, capital expenditures of $425-$500 million, effective tax rate of approximately 24.5%, interest expense of approximately $4 million, and depreciation/amortization of approximately $300 million remain unchanged.
ULTA YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.9B | $2.5B | +13.0% |
| Gross Profit | $1.2B | $1.0B | +14.9% |
| Operating Income | $309.4M | $323.4M | −4.3% |
| Net Income | $230.9M | $242.2M | −4.7% |
Figures from SEC filings and company reports. Not investment advice.