Ulta Magnificence reported double-digit gross sales progress in its third quarter of fiscal 2025, pushed by larger comparable gross sales, new retailer openings and the acquisition of British magnificence retailer House NK, in line with outcomes launched December 4. The retailer additionally raised its full-year monetary outlook because it heads into the height vacation promoting interval.
The outcomes come as cosmetics and private care producers and suppliers proceed to watch U.S. specialty retail efficiency for alerts on class demand.
Q3 gross sales progress
Web gross sales for the third quarter of fiscal 2025 elevated 12.9% to $2.9 billion, in comparison with $2.5 billion within the prior-year quarter. Comparable gross sales rose 6.3% versus 0.6% a yr earlier, pushed by a rise in common buy quantity and frequency.
“Our third quarter outcomes exceeded our expectations, reflecting the regular progress and momentum our staff is constructing as we execute our Ulta Magnificence Unleashed Technique,” stated Kecia Steelman, president and CEO of Ulta Magnificence, in a press assertion.
The technique consists of launching new product choices, bettering in-store and digital retail experiences, and experimenting with totally different advertising and marketing efforts, which “drove sturdy gross sales outcomes, market share beneficial properties and progress throughout all classes and channels, with notable power in ecommerce,” she stated.
Of observe, Ulta’s promoting, common and administrative (SG&A) bills elevated 23.3% to $840.9 million. Executives within the earnings name famous this improve was principally pushed by larger incentive compensation, retailer payroll and advantages, retailer bills and amortization of cloud-based software program investments.
“We leveraged our promoting on account of larger topline income, and so far as the expansion of retailer payroll expense, its primarily as a result of extra promoting hours to assist the visitor expertise,” stated Chris Lialios, interim chief monetary officer through the name.
Merchandising technique factors to fiscal 2026 assortment pipeline
Steelman additionally supplied perception into Ulta Magnificence’s forward-looking merchandising technique through the firm’s earnings name, outlining early planning for the subsequent fiscal yr.
“Our merchandising imaginative and prescient is to actually curate and encourage friends with the most effective magnificence and wellness assortment for all life levels,” Steelman stated through the name.
“Our retailers have been exhausting at work in growing their plans for fiscal 2026, we’ve got an thrilling pipeline of newness…and its balanced throughout the portfolio similar to how this yr was,” she stated. “Backside line, I really feel actually nice about what I’m seeing for 2026.”
She additionally addressed longer-term progress expectations as the corporate updates its near-term outlook.
“This can be a nice place to be in as a result of we’re outperforming what the unique plan was, and whereas our steering for 2025 now could be between 12.3 and 12.4% as we’re 2026 we’re centered on constructing a plan that actually positions us to ship towards our long-term targets,” she defined.
Retailer footprint growth
Ulta Magnificence opened 28 new shops through the third quarter and reworked 15 shops, whereas closing one location. For the primary 9 months of the fiscal yr, the retailer opened 58 new shops, relocated 4 shops, reworked 24 places and closed three.
On the finish of the third quarter, the corporate operated 1,500 Ulta Magnificence shops totaling 15.6 million sq. toes throughout the US, excluding the 84 shops within the U.Okay. and Eire operated by House NK.
Ulta raises full-year fiscal 2025 steering
The corporate elevated its fiscal 2025 outlook following the third quarter efficiency. Up to date steering now calls for roughly $12.3 billion in web gross sales, in comparison with the prior vary of $12.0 billion to $12.1 billion. Comparable gross sales are actually projected to develop between 4.4% and 4.7%, up from the prior vary of two.5% to three.5%.
