Ulta Beauty, Inc. ($ULTA) Stock: Surges Over 11% on Strong Q125 Earnings and Raised Guidance

TLDR

Ulta stock closed at $471.46, up 11.78% after Q1 results beat forecasts. Q1 net sales grew 4.5% to $2.85 billion, EPS hit $6.70. Company raised full-year EPS and comp sales guidance. Ulta continues aggressive share buybacks with $2.3 billion still authorized. Earnings date set for August 27–September 1, 2025.

Ulta Beauty, Inc. ($ULTA) closed on Friday at $471.46, soaring 11.78% after posting better-than-expected Q1 results.

Ulta Beauty, Inc. (ULTA)

The company reported $2.85 billion in revenue and earnings of $6.70 per share, easily beating Wall Street’s estimates. Despite minor margin pressures, the positive results and upgraded full-year guidance fueled investor enthusiasm, pushing the stock near its one-year target of $474.67. The next earnings date is set between August 27 and September 1, 2025.

Ulta Beauty is off to a strong start in its current fiscal year, with earnings that came in way ahead of Street estimates.https://t.co/saPbQB7bkh #retail #beauty #cosmetics #finance

— Chain Store Age (@ChainStoreAge) May 30, 2025

Q1 Financial Highlights

Ulta’s Q1 net sales rose 4.5% year-over-year, primarily driven by a 2.9% increase in comparable sales. Average ticket size grew by 2.3%, while transactions increased by 0.6%. Gross profit climbed 4.2% to $1.11 billion, though the gross margin dipped slightly to 39.1%, reflecting higher store and supply chain costs. SG&A expenses increased 6.7% to $710.6 million, representing 24.9% of net sales due to store payroll and expenses.

Net income came in at $305.1 million, with diluted EPS at $6.70, compared to $6.47 the previous year. Despite a slight operating margin slip to 14.1%, Ulta’s overall performance reassured investors, especially as management expressed cautious optimism about navigating a fluid consumer environment.

Raised Guidance and Strategy

Ulta raised its full-year comparable sales growth projection to up to 1.5% (from 1%) and lifted its EPS range to $22.65–$23.20. CEO Kecia Steelman credited the company’s “Ulta Beauty Unleashed” strategy, which is gaining traction across stores, even as macro uncertainty clouds the outlook.

The company’s store footprint expanded to 1,451 locations, with six new stores, four remodels, and two relocations completed during the quarter. Plans remain on track for 60 net new stores this year, and inventories increased 11.3% to $2.1 billion, reflecting new brand launches and strategic investments.

Aggressive Share Repurchases

Ulta has maintained an aggressive share buyback program, repurchasing nearly $359 million worth of stock in Q1 alone. With $2.3 billion left under its current $3.0 billion authorization, the company continues returning capital to shareholders.

Performance Overview

Year-to-date, Ulta’s stock is up 8.4%, with a one-year return of 22.27%, outperforming the S&P 500’s 12.92%. Over three years, Ulta’s stock has gained 10.91%, trailing the broader market, but its five-year return of 93.21% aligns closely with the S&P 500’s 94.19%.

With steady execution, ongoing share buybacks, and refreshed guidance, Ulta Beauty appears well-positioned to navigate shifting consumer trends in the coming months. Investors now look ahead to its next earnings release, scheduled between August 27 and September 1, 2025.

 

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