Businesses
Ulta Beauty Shows Strong Financial Performance
27 Oct 2025
Ulta Beauty has demonstrated impressive financial growth in the second quarter, posting net sales of US$2.79 billion, a 9.3% increase compared to the same period last year. This growth is driven by rising demand for diverse beauty products, a growing customer base, and the acquisition of Space NK.
Net income also rose by 3.3%, reaching US$260.9 million, up from US$252.6 million. CEO Kecia Steelman attributed the strong performance to robust growth across all major categories, stating, "Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability… We remain committed to executing our Ulta Beauty Unleashed strategy and strengthening our operating model."
At the close of Q2 FY2025, Ulta Beauty operated 1,473 stores, excluding the 83 locations in the U.K. and Ireland acquired through its Space NK acquisition earlier this year. The deal, valued at US$405 million, marks Ulta's entry into the UK market while preserving Space NK's brand and leadership structure.
A key factor behind Ulta's success is its continued investment in omni-channel strategies. The company has successfully integrated in-store experiences with a dynamic e-commerce platform, catering to the needs of tech-savvy, modern beauty and wellness consumers. Virtual try-on tools and a user-friendly e-commerce store have strengthened Ulta as a go-to destination for beauty products, both in-store and online.
Balance Sheet
Cash and cash equivalents at the end of the second quarter of fiscal 2025 totaled $242.7 million. Merchandise inventories, net at the end of the second quarter of fiscal 2025 increased 20.5% to $2.4 billion compared to $2.0 billion at the end of the second quarter of fiscal 2024.
The increase was primarily due to inventory to support new brand launches, 62 net new Ulta Beauty stores, and the addition of 83 net new stores acquired with Space NK. Short-term debt at the end of the second quarter of fiscal 2025 was $289.1 million, as the Company drew on its revolving credit facility primarily to support the acquisition of Space NK.
Share Repurchase Program
During the second quarter of fiscal 2025, the Company repurchased 244,559 shares of its common stock at a cost of $109.5 million. During the first six months of fiscal 2025, the Company repurchased 1.2 million shares of its common stock at a cost of $468.3 million. As of August 2, 2025, $2.2 billion remained available under the $3.0 billion share repurchase program announced in October 2024.
Store Update
During the second quarter of fiscal 2025, the Company opened 24 new stores, relocated two stores, remodeled five stores, and closed two stores. During the first six months of fiscal 2025, the Company opened 30 new stores, relocated four stores, remodeled nine stores, and closed two stores. At the end of the second quarter of fiscal 2025, the Company operated 1,473 Ulta Beauty stores totaling 15.4 million square feet across the U.S., excluding the 83 stores in the U.K. and Ireland operated by Space NK.
Ulta Beauty Raises Full-Year Outlook
Following strong second-quarter results, Ulta Beauty has raised its full-year forecast, projecting net sales between US$12 billion and US$12.1 billion, up from its earlier estimate of US$11.5 billion to US$11.7 billion.
The specialty beauty retailer's plan to open 63 new stores this year remains unchanged, with capital expenditure investments expected to range between US$425 million and US$500 million. Additionally, the company repurchased US$109.5 million of its stock during the quarter, leaving US$2.2 billion in its ongoing buyback program.
Despite the positive outlook for the first half of 2025, Ulta remains cautious about potential risks, including inflation, rising interest rates and tariffs, which could impact consumer demand and retail spend. Steelman concluded, “While near-term uncertainty persists, we are staying focused on what we can control and on executing with excellence to deliver our uniquely Ulta Beauty experience.”
About Ulta Beauty
Ulta Beauty is the largest specialty beauty retailer in the U.S. and a leading destination for cosmetics, fragrance, skincare, haircare, wellness and salon services. Since opening its first store in 1990, Ulta Beauty has grown to 1,500 stores across the U.S. and redefined beauty retail by bringing together All Things Beauty. All in One Place®.
With an expansive product assortment, professional salon services and its Ulta Beauty Rewards loyalty program, the company delivers personalised experiences across stores, ulta.com and the Ulta Beauty App. Ulta Beauty is also expanding its presence internationally through a joint venture in Mexico, a franchise in the Middle East, and its subsidiary, Space NK, a luxury beauty retailer in the U.K. and Ireland.
