Ulta Beauty (ULTA) Q4 2025 earnings summary

Executive summary

• Achieved better-than-expected Q4 and full-year results, with Q4 net sales of $3.5B (down 1.9% YoY) and comp sales up 1.5% on higher average ticket but lower transactions.

• Ended 2024 with 60–66 net new stores, 100 new Target shop-in-shops, and loyalty program membership at a record 44.6 million.

• Launched 40 new brands, expanded digital capabilities, and announced international expansion into Mexico and the Middle East.

• Initiated the Ulta Beauty Unleashed plan, focusing on core growth, scaling new businesses, and realigning the foundation.

• Net income for Q4 was $393.3M ($8.46 diluted EPS), nearly flat year-over-year; full-year net income was $1.2B ($25.34 diluted EPS).

Financial highlights

• Q4 net sales: $3.5B (down 1.9% YoY); comp sales up 1.5%; full-year net sales: $11.3B (up 0.8% YoY).

• Q4 gross margin up 50 bps to 38.2% due to lower shrink; operating profit flat at $516M; EPS up 4.7% to $8.46.

• Full-year operating margin 13.9% (down from 15%); EPS down 2.7% to $25.34.

• Inventory up 13% to $2B, mainly to support new brands and store growth.

• Returned $1B to shareholders via buybacks; $703M in cash at year-end.

Outlook and guidance

• 2025 expected as a transition year: net sales guidance $11.5B–$11.6B; comp sales flat to up 1%.

• Operating profit expected to decrease low double digits; operating margin 11.7%–11.8%.

• Diluted EPS guidance: $22.50–$22.90.

• CapEx planned at $425M–$500M, with 40–45 remodels and continued new store growth.

• $900M in share repurchases targeted for FY25; $2.7B remains under current authorization.