US cosmetics retailer Ulta Beauty has reported a bumper start to its first quarter of trading in 2025.
Net sales increased 4.5% to US$2.8bn compared with $2.7bn during the same quarter last year.
This was primarily driven by an increase in comparable sales and new store contribution, which was partially offset by a decrease in other revenue.
“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energising our team, and fueling growth," said Kecia Steelman, president and CEO of Ulta Beauty .
Gross profit increased 4.2% to $1.11bn compared with $1.07bn.
However, as a percentage of net sales, gross profit decreased to 39.1% compared with 39.2%, primarily due to deleverage of store and supply chain fixed costs.
Operating income was $401.8m, or 14.1% of net sales, compared with $400.9m.
During the first quarter of the year, Ulta Beauty opened six new stores, remodeled four stores and relocated two stores.
The strong Q1 has led the retailer to update its full-year outlook for 2025, and expects sales of $11.5bn to $11.7bn.
"The operating environment is fluid, and our outlook reflects uncertainty around how consumer demand could evolve,” added Steelman.
“We believe our model uniquely positions us to win, and we will continue to focus on serving our guests while staying agile as we move through the year."
It follows Revolution Beauty’s former CEO Lauren Brindley exiting the fast beauty brand after a year-and–a-half in the role to join Ulta beauty.
Brindley will step down from the position and the company’s board on 31 May, and is moving to Ulta Beauty to serve as Chief Merchandising and Digital Officer.
At Ulta Beauty, she will oversee the US beauty retailer’s merchandising, e-commerce, wellness and marketplace strategies, while also leading its assortment brand building strategy.
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