Ulta Beauty Shines in Q1 2025 with Strong Sales and Market Share Gains
In a challenging macroeconomic environment, Ulta Beauty has delivered a solid start to fiscal 2025, showcasing its ability to adapt and innovate in response to changing consumer needs.
During the company's First Quarter 2025 Earnings Call on May 29, 2025, Kecia Steelman, President and Chief Executive Officer, highlighted the encouraging performance of Ulta Beauty, with net sales increasing 4.5% to $2.8 billion in the quarter.
The company's operating profit was 14.1% of sales, and diluted earnings per share reached $6.70. Notably, despite considerable macro noise and uncertainty, guests responded positively to key actions taken by Ulta Beauty, including improved execution, exciting new and exclusive brand launches, evolved promotional plans, and relevant marketing.
These efforts drove improvement across several key performance indicators, such as member growth, brand engagement, earned media value, in-store conversion, and app engagement. Importantly, these initiatives resulted in market share gains during the quarter, demonstrating Ulta Beauty's ability to capitalize on changing consumer preferences.
Consumer engagement with beauty remains healthy, with beauty and wellness being a top priority for enthusiasts. Many consumers are willing to make trade-offs in other discretionary areas to maintain their beauty regimens, indicating an emotional connection that will support the category's resilience going forward.
The Ulta Beauty Unleash plan, announced in March, is designed to accelerate performance and reassert leadership position. The company has made progress on this strategy, with a focus on driving core business growth through excellence in operations and go-to-market approach.
Store teams executed well during key events and holidays, delivering strong 21-day beauty campaign and Valentine's Day and Easter performances. Positive comp sales growth was achieved in stores for the first time in more than a year, driven by improved in-store conversion and guest satisfaction.
Fragrance was Ulta Beauty's strongest-performing category, with double-digit growth primarily driven by newness in women's and gender-neutral fragrance brands, spring and Valentine's Day sets, and continued strength in men's fragrance. The introduction of new and exclusive brands, such as XO, Khloe by Khloe Kardashian, Noise, Valentino, and Billie Elish, contributed to strong category performance.
