Ulta Beauty concluded fiscal 2025 with significant momentum, reporting that full-year net sales surged 9.7% to $12.4 billion, bolstered by a 5.4% increase in comparable sales and the strategic acquisition of luxury retailer Space NK.
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The fourth quarter alone saw net sales climb 11.8% to $3.9 billion, driven by market share gains and a 5.8% comparable sales increase resulting from higher average tickets and transaction growth. Despite this top-line success, fourth-quarter operating income as a percentage of sales moderated to 12.2% from 14.8% the prior year, reflecting heavy strategic enterprise investments, higher advertising spend, and increased incentive compensation.
For the full year, the company achieved a diluted EPS of $25.64 and successfully returned $890.5 million to shareholders through share repurchases.
Looking ahead, president and CEO Kecia Steelman is positioning the retailer for sustainable growth under the "Ulta Beauty Unleashed" strategy. For fiscal 2026, Ulta Beauty issued robust guidance, forecasting net sales growth of 6.0% to 7.0% and comparable sales growth of 2.5% to 3.5%.
(That said, Wall Street was not fully satisfied.)
The company expects to deliver a diluted EPS between $28.05 and $28.55, representing a projected growth of 9.4% to 11.4%. To support these goals, Ulta plans to invest between $400 million and $450 million in capital expenditures focused on new stores, supply chain optimization, and information technology.
Currently operating 1,505 stores in the U.S. market and expanding internationally through its 86 company-operated Space NK locations, the retailer continues to serve the market with a category mix led by cosmetics (38%) and skin care/wellness (24%), per the company.
