Ulta Beauty (ULTA) Q4 2025 earnings summary

Executive summary

• Achieved better-than-expected Q4 and full-year results despite a challenging and increasingly competitive beauty market, with the first market share loss in company history in 2024.

• CEO outlined a new strategic plan, Ulta Beauty Unleashed, focused on core business growth, scaling new businesses, and realigning the foundation for future growth.

• Enhanced assortment with 40 new brands, expanded store footprint with 66 new stores opened, and initiated international expansion into Mexico and the Middle East.

• Loyalty program reached a record 44.6 million members, and significant investments were made in digital and infrastructure.

• Q4 FY24 net sales were $3.5B, down 1.9% year-over-year due to the prior year's extra week, but comparable sales rose 1.5% driven by higher average ticket despite fewer transactions.

Financial highlights

• Q4 net sales: $3.49B (down 1.9% YoY); full-year net sales: $11.3B (up 0.8%).

• Q4 operating profit was $516M (flat YoY, 14.8% margin); full-year operating income: $1.56B (13.9% margin).

• Q4 gross profit: $1.33B (38.2% margin); full-year gross profit: $4.39B (38.8% margin).

• Q4 SG&A expenses: $815.6M (23.4% of sales); full-year SG&A: $2.8B (24.9% of sales), up 4.2%.

• Full-year diluted EPS decreased 2.7% to $25.34.

Outlook and guidance

• FY25 net sales expected at $11.5B–$11.6B; comparable sales growth 0–1%.

• Operating profit projected to decrease in the low double-digit range; operating margin expected at 11.7%-11.8%.

• Diluted EPS guidance for 2025 is $22.50–$22.90.

• CapEx planned at $425M–$500M, with 40–45 remodels, 60 new stores, and continued new store openings.

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