Ulta Beauty has raised its full-year forecast after reporting a healthy boost in net sales for Q2 2025, driven by comparable sales and new store contributions, plus the acquisition of Space NK.
The US beauty retailer’s net sales increased 9.3% to US$2.8bn in its second quarter of fiscal 2025, compared to $2.6bn the year previous.
Comparable sales (sales for stores open at least 14 months and e-commerce sales) were a core component in this growth, increasing 6.7% compared to a decrease of 1.2% in the same period last year.
This was driven by a 3.7% boost in transactions and a 2.9% rise in average ticket sales.
Ulta Beauty’s net income for this period rose 3.3% to $260.9m, compared to $252.6m previously, while its diluted earnings per share rose 9.1% to $5.78 – up from $5.30.
An increased bricks-and-mortar presence was another key driver for the retail giant.
Ulta Beauty opened 24 new stores during this quarter, while also relocating two shops, remodeling five and closing two sites.
By the end of Q2 2025, the company was operating 1,473 Ulta Beauty stores, totaling 15.4 million square feet across the US.
This figure excludes the 83 stores in the UK and Ireland operated by British beauty retailer Space NK, which Ulta Beauty acquired from investment firm Manzanita Capital in July.
“Outstanding top line performance, fuelled by growth across all major categories, drove market share growth and better-than-expected profitability,” said Kecia Steelman, Ulta Beauty’s President and CEO.
“I am proud of the Ulta Beauty team’s collective efforts to deliver great guest experiences in stores and across our digital channels.”
Ulta Beauty’s short-term debt at the end of Q2 2025 was $289.1m as the company drew on its revolving credit facility primarily to support the acquisition of Space NK.
At the end of the second quarter of fiscal 2024, the company had no borrowings outstanding under the revolving credit facility.
Ulta Beauty has now upped its full-year forecast to sales of between $12bn and $12.1bn.
This is an increase from its previous predictions of $11.5bn to $11.7bn.
The company is also forecasting that diluted earnings per share are expected to come in between $23.85 and $24.30 – a rise from its previous prediction of $22.65 to $23.20.
“As we look to the future, we remain committed to executing our ‘Ulta Beauty Unleashed’ strategy and strengthening our operating model,” said Steelman.
“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 are staying focused on what we can control and on executing with excellence to deliver our uniquely Ulta Beauty experience.”
Image credit: Adobe Stock
Related content:
- ‘It is a big opportunity for them to learn how the UK operates’: Experts weigh in on Ulta Beauty’s Space NK acquisition
- Ulta Beauty adds Martin Brok and Stephenie Landry to board of directors
- The end of Ulta Beauty and Target's five-year retail partnership
- L’Oréal sales buoyed by China and hair care but miss analyst expectations
- Interparfum sales slip in Q2 as US demand struggles
- LVMH’s downturn in revenues shored up by beauty and Sephora
- L’Occitane Group sales hit €2.8 billion in ‘watershed year’ helped by Sol de Janeiro
- Puig sales soar 7.6% in H1 due to ‘resilience’ of portfolio