Ulta Magnificence (Ulta) has reported $2.85 billion in gross sales for the primary quarter of fiscal 2025, a 4.5% improve over the identical interval final 12 months. In accordance with 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 visitors,” 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 earnings and earnings of $6.70 per share, up from $6.47 a 12 months 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 steering 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 12 months 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 12 months is projected to stay within the 11.7% to 11.8% vary.
Bellweather evaluation
Ulta’s first-quarter efficiency provided early indicators about broader shopper tendencies and class momentum in magnificence retail. Comparable gross sales development was pushed by a 2.3% improve in common ticket and a 0.6% improve in transactions, which might point out that prospects will not be solely spending extra but additionally persevering with to buy in-store and on-line at constant ranges.
The corporate reported a 4.2% improve in gross revenue to $1.11 billion, though the gross margin dipped barely to 39.1%, largely attributable to elevated retailer and provide chain prices, in addition to decrease different income. Promoting, Basic & Administrative (SG&A) bills rose 6.7% to $710.6 million, Ulta additionally reported, reflecting larger labor and working prices.
For suppliers and producers, one of the notable indicators was Ulta’s 11.3% year-over-year improve in merchandise stock, which the corporate stated was “primarily attributable to stock to assist new model launches, strategic investments in key classes, and 56 web new shops.” This prompt a continued push towards assortment enlargement, particularly in development classes reminiscent of skincare, status cosmetics, wellness, and hair care.
Ulta additionally added six new shops through the quarter and ended with 1,451 complete areas. The continued retail enlargement supplies new bodily shelf area and regional entry factors for each rising and established manufacturers.
Steelman acknowledged ongoing uncertainty within the macro setting however expressed confidence within the firm’s positioning. “The working setting 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.”
