Ulta Beauty (ULTA) Q3 2025 Financial Results Summary
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Ulta Beauty (ULTA) Q3 2025 Financial Results Summary
Bolingbrook, IL – December 4, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) has announced its consolidated financial results for the thirteen-week period (Q3) and thirty-nine-week period (first nine months) ended November 1, 2025, compared to the same periods ended November 2, 2024.
Financial Highlights
Third Quarter of Fiscal 2025 vs. Fiscal 2024
- Net Sales: Increased 12.9% to $2.9 billion from $2.5 billion.
- Comparable Sales: Increased 6.3% compared to 0.6%.
- Average ticket rose by 3.8%.
- Transactions increased by 2.4%.
- Gross Profit: Increased 14.9% to $1.2 billion from $1.0 billion.
- Gross margin improved to 40.4% from 39.7%.
- SG&A Expenses: Increased 23.3% to $840.9 million from $682.3 million.
- SG&A as a percentage of net sales increased to 29.4% from 27.0%.
- Operating Income: Decreased 2.8% to $309.4 million (10.8% of net sales) from $318.5 million (12.6%).
- Net Income: Decreased 4.7% to $230.9 million from $242.2 million.
- Diluted Earnings Per Share: Remained flat at $5.14.
First Nine Months of Fiscal 2025 vs. Fiscal 2024
- Net Sales: Increased 8.8% to $8.5 billion from $7.8 billion.
- Comparable Sales: Increased 5.2% compared to 0.3%.
- Gross Profit: Increased 10.1% to $3.4 billion from $3.1 billion.
- Gross margin improved to 39.6% from 39.1%.
- SG&A Expenses: Increased 15.1% to $2.3 billion from $2.0 billion.
- SG&A as a percentage of net sales increased to 27.0% from 25.5%.
- Operating Income: Increased 0.7% to $1.1 billion (12.4% of net sales) from $1.0 billion (13.4%).
- Net Income: Decreased 1.4% to $796.8 million from $807.8 million.
- Diluted Earnings Per Share: Increased 4.3% to $17.65 from $16.93.
Balance Sheet Highlights
- Cash and Cash Equivalents: At the end of Q3, totaled $204.9 million, up from $177.8 million a year ago.
- Merchandise Inventories: Increased 16.0% to $2.7 billion from $2.4 billion.
- Short-Term Debt: Increased to $551.7 million from $199.7 million due to drawing on revolving credit.
Share Repurchase Program
- During Q3 FY 2025, Ulta repurchased 426,914 shares for $224.7 million.
- Year-to-date, 1.7 million shares repurchased at a total cost of $693.0 million.
- Remaining under the share repurchase program: $2.0 billion left from the total authorization of $3.0 billion announced in October 2024.
Store Update
- New Stores: Opened 28 new stores in Q3, bringing total stores to 1,500.
- Remodels: 15 stores remodeled during the quarter.
- Closures: 1 store closed in Q3.
Fiscal 2025 Outlook
- Revised Net Sales Guidance: Approximately $12.3 billion, up from the prior projection of $12.0 billion to $12.1 billion.
- Comparable Sales Guidance: Updated to 4.4% to 4.7% from 2.5% to 3.5%.
- Operating Margin Guidance: Increased to 12.3% to 12.4% from 11.9% to 12.0%.
- Diluted EPS Guidance: Estimated to be $25.20 to $25.50, up from $23.85 to $24.30.
This summary reflects Ulta Beauty’s strategic initiatives and performance over the quarter, showcasing the company’s growth trajectory and proactive adjustments to meet customer needs during a challenging economic environment.
Exhibit 1: Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data)
| 13 Weeks Ended | ||
|---|---|---|
| November 1, 2025 | November 2, 2024 | |
| (Unaudited) | (Unaudited) | |
| Net sales | $2,857,623 100.0% | $2,530,100 100.0% |
| Cost of sales | $1,701,958 59.6% | $1,524,456 60.3% |
| Gross profit | $1,155,665 40.4% | $1,005,644 39.7% |
| Selling, general and administrative expenses | $840,920 29.4% | $682,259 27.0% |
| Pre-opening expenses | $5,326 0.2% | $4,883 0.2% |
| Operating income | $309,419 10.8% | $318,502 12.6% |
| Interest expense (income), net | $4,123 0.1% | -$1,674 -0.1% |
| Income before income taxes and equity net loss of affiliate | $305,296 10.7% | $320,176 12.7% |
| Income tax expense | $73,436 2.6% | $77,997 3.1% |
| Income before equity net loss of affiliate | $231,860 8.1% | $242,179 9.6% |
| Equity net loss of affiliate | $985 0.0% | $— 0.0% |
| Net income | $230,875 8.1% | $242,179 9.6% |
| Net income per common share: | ||
| Basic | $5.16 | $5.16 |
| Diluted | $5.14 | $5.14 |
| Weighted average common shares outstanding: | ||
| Basic | 44,731 | 46,928 |
| Diluted | 44,895 | 47,092 |
Exhibit 3: Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands)
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $204,921 | $703,201 | $177,782 |
| Receivables, net | $237,352 | $223,334 | $213,621 |
| Merchandise inventories, net | $2,743,639 | $1,968,214 | $2,365,186 |
| Prepaid expenses and other current assets | $158,394 | $129,113 | $135,514 |
| Prepaid income taxes | $26,465 | $4,946 | $62,759 |
| Total current assets | $3,370,771 | $3,028,808 | $2,954,862 |
| Property and equipment, net | $1,366,504 | $1,239,295 | $1,264,419 |
| Operating lease assets | $1,710,804 | $1,609,870 | $1,619,055 |
| Goodwill | $392,606 | $10,870 | $10,870 |
| Other intangible assets, net | $6,089 | $204 | $281 |
| Deferred compensation plan assets | $52,684 | $47,951 | $48,872 |
| Other long-term assets | $112,834 | $64,695 | $60,127 |
| Total assets | $7,012,292 | $6,001,693 | $5,958,486 |
| Liabilities and stockholders’ equity | |||
| Current liabilities: | |||
| Accounts payable | $759,001 | $563,761 | $593,219 |
| Accrued liabilities | $473,949 | $380,241 | $333,463 |
| Deferred revenue | $462,964 | $500,585 | $405,040 |
| Current operating lease liabilities | $290,716 | $288,114 | $284,985 |
| Accrued income taxes | $— | $46,777 | $— |
| Short-term debt | $551,721 | $— | $199,700 |
| Total current liabilities | $2,538,351 | $1,779,478 | $1,816,407 |
| Non-current operating lease liabilities | $1,732,219 | $1,635,120 | $1,656,317 |
| Deferred income taxes | $45,312 | $42,593 | $91,729 |
| Other long-term liabilities | $63,396 | $56,149 | $65,024 |
| Total liabilities | $4,379,278 | $3,513,340 | $3,629,477 |
| Commitments and contingencies | |||
| Total stockholders’ equity | $2,633,014 | $2,488,353 | $2,329,009 |
| Total liabilities and stockholders’ equity | $7,012,292 | $6,001,693 | $5,958,486 |
