Ulta Magnificence (Ulta) has reported $2.85 billion in gross sales for the primary quarter of fiscal 2025, a 4.5% enhance over the identical interval final yr. In response to the retailer, comparable gross sales additionally rose 2.9%, pushed by each elevated transactions and better common spending per buyer.
“Fiscal 2025 is off to an encouraging begin with stronger-than-expected efficiency,” stated CEO Kecia Steelman within the firm’s press launch. “Our Ulta Magnificence Unleashed plan is resonating with friends,” she added, “energizing our staff, and fueling development.”
Regular development, rising prices, and strategic spend
Regardless of rising retailer and staffing prices, Ulta posted $305.1 million in web revenue and earnings of $6.70 per share, up from $6.47 a yr earlier. The corporate reported it has raised its full-year gross sales forecast to a spread of $11.5 billion to $11.7 billion, and lifted its earnings steerage to as excessive as $23.20 per share, citing continued power in buyer engagement and product combine.
Moreover, Ulta elevated its projected comparable gross sales vary for the yr from 0% to 1% to 0% to 1.5%. Different parts of the outlook remained unchanged however pointed to constant long-term funding.
For instance, the corporate nonetheless expects to open roughly 60 web new shops in 2025, with one other 40–45 remodels or relocations deliberate. Moreover, working margin for the yr is projected to stay within the 11.7% to 11.8% vary.
Bellweather evaluation
Ulta’s first-quarter efficiency supplied early alerts about broader shopper traits and class momentum in magnificence retail. Comparable gross sales development was pushed by a 2.3% enhance in common ticket and a 0.6% enhance in transactions, which might point out that clients usually are not solely spending extra but additionally persevering with to buy in-store and on-line at constant ranges.
The corporate reported a 4.2% enhance in gross revenue to $1.11 billion, though the gross margin dipped barely to 39.1%, largely as a consequence of elevated retailer and provide chain prices, in addition to decrease different income. Promoting, Normal & Administrative (SG&A) bills rose 6.7% to $710.6 million, Ulta additionally reported, reflecting larger labor and working prices.
For suppliers and producers, some of the notable alerts was Ulta’s 11.3% year-over-year enhance in merchandise stock, which the corporate stated was “primarily as a consequence of stock to assist new model launches, strategic investments in key classes, and 56 web new shops.” This urged a continued push towards assortment enlargement, particularly in development classes corresponding to skincare, status cosmetics, wellness, and hair care.
Ulta additionally added six new shops throughout the quarter and ended with 1,451 complete places. The continued retail enlargement supplies new bodily shelf house and regional entry factors for each rising and established manufacturers.
Steelman acknowledged ongoing uncertainty within the macro atmosphere however expressed confidence within the firm’s positioning. “The working atmosphere is fluid, and our outlook displays uncertainty round how shopper demand might evolve,” she concluded within the press launch. “We imagine our mannequin uniquely positions us to win.”
