Net Sales Surge 9.3% for Ulta Beauty in Q2 2025

Net sales increased 9.3% to $2.8 billion for Ulta Beauty in Q2 2025, compared to $2.6 billion in the prior-year quarter. Officials attribute the surge to increased comparable sales, the acquisition of Space NK and new store contribution.

Comparable sales increased 6.7% and net income increased to $260.9 million or $5.78 per diluted share.

“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,” said Kecia Steelman, president and chief executive officer. “I am proud of the Ulta Beauty team’s collective efforts to deliver great guest experiences in stores and across our digital channels.”

Steelman continued, “As we look to the future, we remain committed to executing our Ulta Beauty Unleashed strategy and strengthening our operating model. 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. 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.”

Selling, general and administrative (SG&A) expenses increased 15.0% to $741.7 million compared to $644.8 million. As a percentage of net sales, SG&A expenses increased to 26.6% compared to 25.3%, primarily due to higher incentive compensation, store payroll and benefits and corporate overhead.

Operating income was $344.9 million, or 12.4% of net sales, compared to $329.2 million, or 12.9% of net sales. The tax rate was 24.5% compared to 24.3%.

First Six Months of Fiscal 2025

For the first six months of Fiscal 2025, net sales increased 6.8% to $5.6 billion compared to $5.3 billion, primarily due to increased comparable sales, the acquisition of Space NK and new store contribution, partially offset by a decrease in other revenue.

Comparable sales increased 4.7% compared to an increase of 0.2%, driven by a 2.6% increase in average ticket and a 2.1% increase in transactions. Gross profit increased 7.7% to $2.2 billion compared to $2.0 billion. As a percentage of net sales, gross profit increased to 39.1% compared to 38.8%, primarily due to lower inventory shrink, higher merchandise margin, and favorable channel mix shifts, partially offset by lower other revenue and deleverage of supply chain fixed costs.

SG&A expenses increased 10.8% to $1.5 billion compared to $1.3 billion. As a percentage of net sales, SG&A expenses increased to 25.8% compared to 24.8%, primarily due to deleverage of store payroll and benefits, higher incentive compensation, and higher store expenses.

Operating income was $746.6 million, or 13.2% of net sales, compared to $730.1 million, or 13.8% of net sales. The tax rate was 24.5% compared to 23.7% primarily due to a reduced benefit from income tax accounting for stock-based compensation.

Fiscal 2025 Outlook

The updated Fiscal outlook for 2025 is $12.0 billion to $12.1 billion.