Yesterday, Ulta Beauty delivered stronger-than-expected results in the second quarter of fiscal 2025, boosted by its acquisition of British beauty retailer Space NK and resilient consumer demand across categories. The company beat Wall Street estimates on both revenue and earnings, while also raising its full-year outlook despite ending its partnership with Target Corp.
Net sales rose 9.3 percent to $2.8 billion from $2.6 billion, driven by higher comparable sales, the Space NK acquisition and new store openings. Analysts had projected $2.67 billion. Net income increased 3.3 percent to $260.9 million, while diluted earnings per share climbed 9.1 percent to $5.78, topping expectations of $5.10. Ulta now expects full-year sales between $12 billion and $12.1 billion, up from prior guidance of $11.5 billion to $11.7 billion. Earnings per share are forecast at $23.85 to $24.30, compared with $22.65 to $23.20 previously.
By business segment, in the second quarter of fiscal 2025, Ulta Beauty’s makeup business accounted for the largest share at 39%, followed by skincare at 25%. In addition, Ulta Beauty had a total of 1,473 stores in the second quarter, during which it closed two locations.
President and chief executive officer Kecia Steelman highlighted the company’s strong momentum but cautioned about potential shifts in consumer demand 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,” she said.
