# Ulta Beauty (ULTA) Q2 2025 Financial Results Summary
**Release Date: August 28, 2025**
Ulta Beauty, Inc. (NASDAQ: ULTA) announced its financial results for the second quarter of fiscal 2025, covering the thirteen-week period ended August 2, 2025. Below is a concise summary of the performance metrics, highlighting notable growth and key financial indicators.
### Financial Highlights
– **Net Sales**:
– Increased by **9.3%** to **$2.79 billion** from **$2.55 billion** in Q2 2024
– **Comparable Sales**:
– Increased by **6.7%** compared to a decline of **1.2%** in Q2 2024, driven by:
– A **3.7%** increase in transactions
– A **2.9%** increase in average ticket
– **Gross Profit**:
– Increased by **11.6%** to **$1.09 billion** from **$978.2 million**
– Gross profit margin improved to **39.2%** vs. **38.3%** in Q2 2024
– **Operating Income**:
– Reported at **$344.9 million**, or **12.4%** of net sales, compared to **$329.2 million** or **12.9%** of net sales in Q2 2024
– **Net Income**:
– Rose by **3.3%** to **$260.9 million** from **$252.6 million**
– **Diluted Earnings Per Share**:
– Increased by **9.1%** to **$5.78** compared to **$5.30** in Q2 2024, incorporating a **$0.03** benefit from income tax accounting for stock-based compensation
– **Selling, General, and Administrative (SG&A) Expenses**:
– Increased by **15.0%** to **$741.7 million** from **$644.8 million**
– SG&A as a percentage of net sales rose to **26.6%** from **25.3%** due to higher incentive compensation, payroll, and corporate overhead
### First Six Months of Fiscal 2025
– **Net Sales**:
– Increased by **6.8%** to **$5.64 billion** compared to **$5.28 billion** in the same period of fiscal 2024
– **Comparable Sales**:
– Grew by **4.7%**, up from **0.2%**
– **Gross Profit**:
– Increased by **7.7%** to **$2.21 billion** with a margin of **39.1%**, up from **38.8%**
– **SG&A Expenses**:
– Increased by **10.8%** to **$1.45 billion**, resulting in an increase in expenses as a percentage of sales to **25.8%**
– **Operating Income**:
– Reported at **$746.6 million**, or **13.2%** of net sales, down from **13.8%**
– **Net Income**:
– Marginal increase to **$565.9 million** from **$565.7 million**
– **Diluted Earnings Per Share**:
– Increased by **6.0%** to **$12.49** compared to **$11.78**
### Share Repurchase and Dividend Information
– **Share Repurchase Program**:
– During Q2 FY2025, the company repurchased **244,559 shares** at a cost of **$109.5 million**.
– In the first six months of FY2025, **1.2 million shares** were repurchased totaling **$468.3 million**.
– As of August 2, 2025, **$2.2 billion** remains available under the **$3.0 billion** share repurchase program started in October 2024.
– **Dividends**:
– No quarterly dividend has been declared in the announcement.
### Balance Sheet Highlights
– **Cash and Cash Equivalents**:
– Ended Q2 FY2025 at **$242.7 million** compared to **$703.2 million** at the end of FY2025 and **$414.0 million** at the end of Q2 FY2024.
– **Merchandise Inventories**:
– Increased by **20.5%** to **$2.41 billion** from **$2.00 billion** in Q2 FY2024, attributed to new product launches and store expansions.
– **Short-term Debt**:
– At **$289.1 million** as of Q2 FY2025, up from no borrowings in the previous year, due to acquisition funding.
### Store Update
– **New Stores**:
– Opened **24 new stores** in Q2 FY2025, totaling **1,473 stores** by the end of the quarter.
– Closed **2 stores**, and remolded **5 stores**.
### FY2025 Outlook
– **Net Sales Forecast**: Updated to **$12.0 billion** to **$12.1 billion**, up from the previous guidance of **$11.5 billion** to **$11.7 billion**.
– **Comparable Sales Growth**: Revised to **2.5%** to **3.5%** from an initial estimate of **0% to 1.5%**.
– **Diluted EPS Forecast**: Now expected at **$23.85** to **$24.30**, increased from **$22.65** to **$23.20**.
Overall, Ulta Beauty demonstrated strong financial results for the second quarter of FY2025, marked by growth across multiple metrics and a robust store expansion strategy.
Here are the extracted tables from the press release in Markdown format:
### **Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data)**
| 13 Weeks Ended | ||||
|---|---|---|---|---|
| August 2, 2025 | August 3, 2024 | |||
| Net sales | $2,788,469 | 100.0% | $2,552,087 | 100.0% |
| Cost of sales | $1,696,773 | 60.8% | $1,573,910 | 61.7% |
| Gross profit | $1,091,696 | 39.2% | $978,177 | 38.3% |
| Selling, general and administrative expenses | $741,737 | 26.6% | $644,821 | 25.3% |
| Pre-opening expenses | $5,105 | 0.2% | $4,155 | 0.2% |
| Operating income | $344,854 | 12.4% | $329,201 | 12.9% |
| Interest income, net | -$1,413 | -0.1% | -$4,526 | -0.2% |
| Income before income taxes and equity net loss of affiliate | $346,267 | 12.4% | $333,727 | 13.1% |
| Income tax expense | $84,795 | 3.0% | $81,171 | 3.2% |
| Income before equity net loss of affiliate | $261,472 | 9.4% | $252,556 | 9.9% |
| Equity net loss of affiliate | $597 | 0.0% | $— | 0.0% |
| Net income | $260,875 | 9.4% | $252,556 | 9.9% |
| Net income per common share: | ||||
| Basic | $5.80 | $5.32 | ||
| Diluted | $5.78 | $5.30 | ||
| Weighted average common shares outstanding: | ||||
| Basic | 44,955 | 47,505 | ||
| Diluted | 45,112 | 47,667 |
### **Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands)**
| August 2, 2025 | February 1, 2025 | August 3, 2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $242,745 | $703,201 | $413,962 |
| Receivables, net | $224,412 | $223,334 | $200,863 |
| Merchandise inventories, net | $2,407,051 | $1,968,214 | $1,998,286 |
| Prepaid expenses and other current assets | $165,963 | $129,113 | $132,023 |
| Prepaid income taxes | $28,877 | $4,946 | $53,607 |
| Total current assets | $3,069,048 | $3,028,808 | $2,798,741 |
| Property and equipment, net | $1,332,503 | $1,239,295 | $1,225,850 |
| Operating lease assets | $1,682,151 | $1,609,870 | $1,599,735 |
| Goodwill | $392,606 | $10,870 | $10,870 |
| Other intangible assets, net | $5,466 | $204 | $357 |
| Deferred compensation plan assets | $50,550 | $47,951 | $46,280 |
| Other long-term assets | $98,324 | $64,695 | $55,575 |
| Total assets | $6,630,648 | $6,001,693 | $5,737,408 |
| Liabilities and stockholders’ equity | |||
| Current liabilities: | |||
| Accounts payable | $708,655 | $563,761 | $566,904 |
| Accrued liabilities | $460,232 | $380,241 | $348,042 |
| Deferred revenue | $460,187 | $500,585 | $394,987 |
| Current operating lease liabilities | $282,593 | $288,114 | $281,301 |
| Accrued income taxes | $— | $46,777 | $— |
| Short-term debt | $289,101 | $— | $— |
| Total current liabilities | $2,200,768 | $1,779,478 | $1,591,234 |
| Non-current operating lease liabilities | $1,716,133 | $1,635,120 | $1,647,698 |
| Deferred income taxes | $49,158 | $42,593 | $88,461 |
| Other long-term liabilities | $60,729 | $56,149 | $61,855 |
| Total liabilities | $4,026,788 | $3,513,340 | $3,389,248 |
| Commitments and contingencies | |||
| Total stockholders’ equity | $2,603,860 | $2,488,353 | $2,348,160 |
| Total liabilities and stockholders’ equity | $6,630,648 | $6,001,693 | $5,737,408 |
