Ulta Beauty Raises 2025 Sales Outlook
Ulta Beauty (NASDAQ:ULTA) reported its Q2 FY2025 earnings on August 14, 2025, with net sales up 9.3% to $2.8 billion, comparable sales increased 6.7% year-over-year, and diluted EPS at $5.78. Management raised full-year sales and EPS guidance for FY2025, announced milestones in international expansion, provided segment-level performance detail, and addressed the future impact of its Target partnership wind-down. The following analysis distills three key insights shaping the long-term investment thesis.
Management raised annual GAAP net sales expectations to a range of $12 billion to $12.1 billion, citing momentum from both stores and digital channels, with e-commerce comp sales up in the low double digits. Gross margin rose 90 basis points to 39.2%, attributed to lower inventory shrink and better promotional efficiency, while operating margin (GAAP) faced pressure from higher SG spending, including increased incentive compensation and investments supporting strategic priorities.
This revised guidance signals management’s discipline amid ongoing inflationary and competitive pressures, but also highlights e-commerce as an increasingly critical engine of future growth for Ulta Beauty, reinforcing the value of its omnichannel strategy.
Source Fool.com
