Ulta Beauty has posted double digit revenue growth for the third quarter (Q3) of fiscal 2025 but reported lower operating income and net profit as expenses accelerated, prompting the US beauty retailer to narrow its full year guidance.
The company now forecasts full year fiscal 2025 net sales of around $12.3bn, with comparable sales expected to increase between 4.4% and 4.7%.
It is projecting an operating margin of 12.3% to 12.4% and diluted earnings per share in the range of $25.20 to $25.50.
For the quarter ended 1 November 2025, net sales increased 12.9% to $2.9bn from $2.5bn a year earlier.
The company attributed the uplift to stronger comparable sales, the acquisition of Space NK, and the contribution of newly opened stores.
Comparable sales advanced 6.3%, supported by a 3.8% rise in average ticket and a 2.4% increase in transactions.
Gross profit rose 14.9% to $1.2bn, representing 40.4% of net sales.
Operating income declined to $309.4m, equivalent to 10.8% of net sales, and net income fell to $230.9m. Diluted earnings per share were unchanged year-on-year at $5.14.
Ulta Beauty ended Q3 with $204.9m in cash and cash equivalents. Merchandise inventories were up 16% at $2.7bn, which the company linked to new brand launches, the integration of Space NK and the addition of 63 net new stores over the period.
In its physical estate, the group opened 28 new US stores, remodelled 15 locations and closed one outlet during the quarter, taking its US store base to 1,500. This figure excludes 84 Space NK stores in the UK and Ireland.
Ulta Beauty president and CEO Kecia Steelman stated: “Our third quarter results exceeded our expectations, reflecting the steady progress and momentum our team is building as we execute our Ulta Beauty Unleashed strategy.
“Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains and growth across all categories and channels, with notable strength in e-commerce.”
