Target has announced that its beauty sales for Q2 2025 totaled $3,396 million, up slightly from the $3,384 million achieved in the same period of 2024. That said, six-month sales were down slightly year-over-year, totaling $6,498 million compared to $6,503 million in 2024.
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Target has announced that its beauty sales for Q2 2025 totaled $3,396 million, up slightly from the $3,384 million achieved in the same period of 2024. That said, six-month sales were down slightly year-over-year, totaling $6,498 million compared to $6,503 million in 2024.
CNBC reports that "Target has posted annual sales growth in its beauty category, excluding Ulta Beauty items, every year since 2010, and it’s confident that can continue."
In a joint announcement on August 14, Ulta Beauty and Target Corporation confirmed they will not renew their shop-in-shop partnership, "Ulta Beauty at Target," when the current agreement expires in August 2026. Launched in 2021, the collaboration brought prestige beauty products to Target’s retail footprint while allowing consumers to earn Ulta Beauty Rewards on purchases through Target stores and online.
"With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth," said Brian Cornell, chair and chief executive officer of Target Corporation. "He's contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward. Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress. Today, we also reported our second quarter earnings, which showed encouraging signs of recovery, including improved traffic and sales trends — particularly in our stores — and disciplined cost management in a challenging retail environment. As we enter the critical back-to-school and holiday seasons, our team remains focused on consistent execution and building momentum as we look ahead to the new year."
Target and Ulta End Partnership to Pursue Independent Growth Strategies
The Target-Ulta partnership was seen as being challenged by the ascendancy of Amazon, as well as Sephora.
As recently as November 2024, Target had touted beauty as a rare bright spot of growth for the retailer. At the time, Rick Gomez, executive vice president, chief commercial officer, Target, said, “In terms of category performance, sales and market share gains were strongest in beauty again this quarter with comparable sales growth of more than 6%. This strong performance was broad-based with growth in our core beauty business as well as our Ulta Beauty at Target offerings.”
This latest decision marks a strategic shift for both companies. Ulta has stated it will focus on expanding its omnichannel approach, including the upcoming launch of the Ulta Beauty Marketplace, a curated online platform aimed at engaging new brands and audiences. Meanwhile, Target plans to further enhance its beauty category by offering a differentiated range of products, immersive trial experiences and affordability.
The partnership was initially seen as a win-win, combining Target's wide customer base with Ulta’s prestige beauty expertise. The move to part ways suggests both companies are looking to redefine their individual growth strategies in the competitive beauty and retail landscapes. Until the partnership concludes in 2026, customers with linked Ulta Beauty Rewards and Target Circle accounts can continue earning rewards on eligible purchases.
Ulta Beauty remains the largest U.S. specialty beauty retailer, though it has lost ground to Sephora, while Target continues to focus on enhancing its appeal to its millions of weekly shoppers.
“For 35 years, Ulta Beauty has revolutionized how people experience beauty–bringing together an unmatched assortment from mass to luxury–and our partnership with Target was one of many unique ways we have brought the power of beauty to guests nationwide,” said Amiee Bayer-Thomas, chief retail officer, Ulta Beauty. “As we continue to execute our Ulta Beauty Unleashed plans, we’re confident our wide-ranging assortment, expert services and inspiring in-store experiences will reinforce our leadership in beauty and define the next chapter of our brand.”
“We’re proud of our shared success with Ulta Beauty and the experience we’ve delivered together,” said Gomez. “The magic of shopping for beauty at Target is the combination of on-trend products that delight consumers with an inspiring and convenient shopping experience. We look forward to what’s ahead and remain committed to offering the beauty experience consumers have come to expect from Target – one centered on an exciting mix of beauty brands with continuous newness, all at an unbeatable value.”
