US-based speciality retailer Ulta Beauty has reported fiscal 2025 (FY25) sales growth but forecast a slower growth in FY26.

In FY25, which ended 31 January 2026, net sales rose 9.7% to $12.39bn, primarily driven by comparable sales growth, Space NK, and revenue from new store openings.

Comparable sales rose 5.4%, supported by a 3.3% increase in average ticket and a 2% lift in transactions.

Full-year operating income came to $1.53bn, down from $1.56bn, representing 12.4% of net sales.

Net income fell to $1.15bn from $1.20bn a year earlier.

Merchandise inventories increased 10.8% to $2.18bn, which Ulta linked to stock for new brand launches, Space NK and 60 net new stores.

Capital expenditure totalled $434.8m, going towards new stores, relocations and remodels, as well as IT spending and supply chain optimisation.

In the fourth quarter, net sales increased 11.8% to $3.89bn.

Comparable sales advanced 5.8%, reflecting a 4.2% rise in average ticket and a 1.6% increase in transactions.

Operating income for the quarter was $476.9m, compared with $516.3m a year earlier, and equated to 12.2% of net sales.

Quarterly net income declined to $356.6m from $393.2m in the prior-year period.

Ulta Beauty president and CEO Kecia Steelman said: “The Ulta Beauty team closed the year with momentum, delivering strong fourth quarter and full-year sales and continued market share gains.

“Looking ahead, we are well-positioned for sustainable, profitable growth in 2026 and beyond and are excited to build on our successes to extend our position as the unmatched beauty and wellness destination for all guests across all ages and life stages.”

For FY26, the beauty retailer expects net sales to rise 6% to 7% and comparable sales growth of 2.5% to 3.5%.

Ulta also guided to operating income growth of 6% to 9%, with diluted earnings per share expected to come in between $28.05 and $28.55.