Ulta Beauty Inc. reported fiscal 2025 fourth‑quarter earnings that surpassed expectations, delivering earnings per share of $8.01 versus a consensus estimate of $7.98 and revenue of $3.898 billion against a consensus of $3.83 billion. The $0.03 EPS beat and the $68 million revenue beat represent a 0.4% and 1.8% outperformance, respectively, underscoring the company’s ability to generate incremental profit even as it navigates a competitive beauty landscape.
Comparable store sales grew 5.8% year‑over‑year, driven by a 4.2% lift in average ticket size and a 1.6% increase in transaction volume. The mix shift toward higher‑margin categories and the continued expansion of the loyalty program helped sustain the sales momentum, while the company’s omnichannel investments kept online and in‑store traffic complementary.
Gross profit rose 11.2% to $1.5 billion, but the gross margin slipped to 38.1% from 38.2% in the prior year. The slight compression reflects a less favorable channel mix—more sales in lower‑margin e‑commerce channels—and the benefits of inventory shrink improvements, which offset the impact of higher cost of goods sold in the core beauty categories.
For fiscal 2026, Ulta guided GAAP earnings per share of $28.05 to $28.55 and revenue of $13.14 billion to $13.26 billion, both below Wall Street consensus. Management cited a “normalized” beauty environment and ongoing global uncertainty as reasons for the conservative outlook, while a 23% year‑over‑year rise in SG&A expenses and margin pressure signal that the company is investing heavily in strategic initiatives—such as loyalty program enhancements and omnichannel capabilities—at the expense of short‑term profitability.
Kecia Steelman, Ulta’s president and CEO, said the company “closed the year with momentum, delivering strong fourth‑quarter and full‑year sales and continued market share gains. Our better‑than‑planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies.”
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