Ulta Beauty Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.48%.
Did ULTA Beat Earnings? Q4 2025 Results
Ulta Beauty closed out fiscal 2024 on a stronger-than-expected note, delivering a Q4 earnings beat that caught Wall Street off guard despite a backdrop of modest top-line pressure. The beauty retailer posted diluted EPS of $8.46, well ahead of the $7.14 consensus estimate for an 18.49% positive surprise, while revenue of $3.49 billion edged past the $3.46 billion estimate, even as net sales slipped 1.9% year-over-year, a decline the company attributed largely to the prior year's calendar benefit from a 53rd week that contributed roughly $181.90 million. Gross margin expansion to 38.2%, helped by lower inventory shrink and a favorable channel mix, was the most meaningful driver of the earnings outperformance. Category mix also shifted, with fragrance and skincare gaining share within the assortment as consumers evolved their spending patterns. Looking ahead, Ulta characterized fiscal 2025 as a pivotal but transitional year, guiding for net sales of $11.50 billion to $11.60 billion and diluted EPS of $22.50 to $22.90, reflecting planned strategic investments that management acknowledged will take time to pay off.
- Comparable sales increased 1.5% driven by 3.0% increase in average ticket
- Gross margin expanded to 38.2% from 37.7% due to lower inventory shrink, favorable channel mix, and higher merchandise margin
- Fragrance category grew to 17% of Q4 sales from 15% year-over-year
- Skincare category grew to 23% of Q4 sales from 22% year-over-year
- 60 net new stores opened during fiscal 2024
- Q4 transactions declined 1.4%
“The Ulta Beauty team delivered stronger-than-expected revenue, profitability, and diluted EPS in the fourth quarter. I am incredibly proud of our team's collective impact on the business and the care they showed our guests throughout the holiday season, positioning us to finish fiscal 2024 ahead of our expectations.”
Ulta Beauty CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025, Ulta Beauty expects net sales of $11.5 billion to $11.6 billion, comparable sales growth of 0% to 1%, approximately 60 net new stores, 40-45 remodel and relocation projects, operating margin of 11.7% to 11.8%, diluted EPS of $22.50 to $22.90, share repurchases of approximately $900 million, interest income of approximately $6 million, effective tax rate of approximately 24.5%, capital expenditures of $425 million to $500 million, and depreciation and amortization expense of $290 million to $300 million. Management described fiscal 2025 as a 'pivotal year' with purposeful investments to fuel future growth and optimize the business.
ULTA YoY Financials
Figures from SEC filings and company reports. Not investment advice.