Ulta Beauty's Q2 2025 net sales increased 9.3% year-over-year to $2.8 billion, while first half net sales increased 6.8% to $5.6 billion, driven by increased comparable sales, the acquisition of Space NK and new store contribution. As a result, Ulta has increased its full-year net sales forecast from a range of $11.5 billion to $11.7 billion to a range of $12.0 billion to $12.1 billion, the latter of which represents a growth rate of 2.5-3.5%. Key highlights include:
- In Q2, comparable sales grew 6.7%, driven by a 3.7% rise in transactions and a 2.9% increase in average ticket size. Gross profit rose 11.6% to $1.1 billion, with margins improving to 39.2% due to lower inventory shrink and higher merchandise margins, despite higher supply chain costs. Net income grew 3.3% to $260.9 million, and diluted earnings per share increased 9.1% to $5.78. However, SG\&A expenses climbed 15.0% due to higher payroll, benefits, and corporate overhead.
- For the first half of fiscal 2025, comparable sales increased 4.7%, supported by a 2.6% increase in average ticket and a 2.1% rise in transactions. Gross profit grew 7.7% to $2.2 billion, with margins improving to 39.1%. However, SG\&A expenses rose 10.8%, impacting operating income, which stood at $746.6 million, or 13.2% of net sales. Diluted earnings per share for the first half increased 6.0% to $12.49, reflecting steady financial performance despite higher operating costs.
Future growth opportunities may include new stores in Mexico City, Kuwait City and Dubai later this year, along with the launch of a third-party marketplace.
“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth," said Kecia Steelman, president and CEO. "Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability. 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.”
Ulta's Mexico Initiative Brings New Brands to the Market
The news comes as Ulta Beauty pursues a joint venture expansion in Mexico.
For instance, Peach & Lily has officially entered the Mexican beauty market through an exclusive partnership with Ulta Beauty. Starting August 2025, the brand's popular K-beauty and glass skin products became available in all 10 Ulta Mexico locations. The first door opened on August 21 at Antara Fashion Hall in Mexico City, followed by Galerías Metepec on August 28, with further openings across León, Guadalajara, Monterrey, Tijuana and more through January.
“This marks our first international retail expansion, and we’re incredibly excited to introduce our powerful yet gentle products to such a vibrant market," said Peach & Lily founder and CEO Alicia Yoon. "While we’ve always shipped internationally, Ulta Beauty Mexico opens up a dynamic new way for customers to discover and experience Peach & Lily guided by Ulta’s expertise.”
