Ulta Beauty reported growth in all major categories and topped Wall Street’s sales expectations in Q2 of 2025.
The beauty brand reported net sales growth of 9.3%, reaching a total of US$2.8 billion in the quarter. This beats the first quarter’s growth of 4.5% and also beats Wall Street’s expectations of $2.7 billion.
Ulta’s net income also rose to $260.88 million or $5.78 per share from $252.6 million or $5.30 per share the same time last year.
Revenue for the past quarter sat at $2.79 billion, beating both the $2.555 billion year-over-year and Wall Street’s estimate of $2.67 billion.
This growth comes despite shaky spending patterns from consumers in the U.S.
“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth,” Ulta president and CEO Kecia Steelman said.
“Outstanding top-line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability.”
Steelman said tariffs haven’t caused too many problems for the company as people use beauty as an escape, with online transactions rising by 3.7% and comparable sales growing 6.7% year-over-year.
“Our insight suggests consumers continue to prudently manage their day-to-day spending and are watchful of pricing trends in response to tariffs,” Steelman said on the earnings call.
“At the same time, beauty enthusiasts tell us that they’re prioritising their beauty regimens and remain strongly engaged within the category.”
This comes as the company introduces a third-party marketplace in the third quarter but cuts ties with Target. Steelman said the Target deal only contributed to “well below 1% of net sales” in the last fiscal year.
The company also plans to expand to international markets after marking the soft opening of a store in Mexico, and plans to open a store in the Middle East later this year.
Due to the recent growth, Ulta has increased its 2025 outlook from between $11.5 billion and $11.7 billion in net sales to $12 billion to $12.1 billion.
“Our outlook for the remainder of the year reflects both the strength of our year-to-date performance and our caution around how consumer demand may evolve in the second half of the year,” Steelman said.
“While near-term uncertainty persists, we’re staying focused on what we can control and on executing with excellence to deliver our uniquely Ulta Beauty experience.”
At the time of writing, Ulta Beauty (NASDAQ: ULTA) shares closed 0.60% lower at $530.63, before lifting 2.7% to $545.00 in after-hours trade. Its market cap is US$23.85 billion.
