Ulta Beauty, the leading specialty beauty retailer in the United States, has once again surprised Wall Street with a robust second-quarter performance and an optimistic outlook for the rest of 2025. The company, which has become a staple for beauty enthusiasts across the nation, reported revenue and earnings that not only beat analyst expectations but also prompted a significant upward revision of its full-year guidance. As competitors scramble to keep up and consumers continue to prioritize self-care, Ulta’s latest results offer a telling snapshot of the resilient beauty sector—even in a time when many Americans are tightening their belts elsewhere.
On August 28, 2025, Ulta Beauty revealed that its second-quarter revenue soared to $2.79 billion, comfortably surpassing the consensus estimate of $2.67 billion, according to Benzinga. Earnings per share came in at $5.78, handily beating analyst predictions of $4.97 per share. When compared to the same period last year, total revenue increased by 9.3%, and net income rose to $260.88 million from $252.6 million. These figures reflect not just a healthy bottom line, but a company that’s capturing greater market share in a competitive landscape.
Comparable sales—a crucial measure that strips out the impact of new store openings and closures—jumped 6.7% year-over-year. This growth was driven by a 3.7% increase in the number of transactions and a 2.9% rise in the average ticket, indicating that both more people are shopping at Ulta and they’re spending more when they do. CEO Kecia Steelman credited this success to “outstanding top line performance, fueled by growth across all major categories,” as quoted by Benzinga. She added, “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.”
Ulta’s confidence in its trajectory was underscored by a series of upward revisions to its full-year forecasts. The company now expects net sales between $12 billion and $12.1 billion, up from its previous guidance of $11.5 billion to $11.7 billion. Earnings per share are projected to land between $23.85 and $24.30, an increase from the earlier range of $22.65 to $23.20. Comparable sales are anticipated to grow by 2.5% to 3.5% for the full year, a notable jump from the prior projection of up to 1.5%.
Such optimism is not without reason. Ulta added 24 new stores during the quarter, closing only two, which brings its total footprint to 1,473 locations as of August 2, 2025. Merchandise inventories also grew by 20.5% year-over-year, reaching $2.4 billion, while the company ended the quarter with $242.7 million in cash and cash equivalents. Shares of Ulta responded positively, rising 5.57% in after-hours trading to $560.17, according to Benzinga Pro.
What’s fueling this growth? For one, beauty remains a hot category for consumers, even as many pull back on other discretionary purchases. According to CNBC, specialty players like LVMH-owned Sephora, big-box retailers such as Walmart, and department stores like Kohl’s have all ramped up their beauty offerings, making the sector more competitive. Yet, Ulta has managed to stay ahead by innovating and diversifying its product range.
During the quarter, Ulta introduced new brands that resonated with shoppers, including Sol de Janeiro, exclusive Korean beauty brand Peach & Lily, and Shakira’s hair care brand, Isima. The company also stepped up its engagement efforts, activating its brand at major music festivals like Coachella and Lollapalooza, and serving as the official beauty retail partner for Beyoncé’s Cowboy Carter Tour. These partnerships have helped Ulta reach new audiences and reinforce its cultural relevance.
Wellness is another area where Ulta is making inroads. The retailer has opened dedicated wellness shops—stocked with supplements and other health-focused products—in about 370 of its stores, with plans to expand further this quarter. As Steelman explained on the company’s earnings call, beauty and wellness “offer a unique sense of comfort and escape,” even during tumultuous economic times.
Ulta’s ambitions extend beyond U.S. borders. In July 2025, the company acquired Space NK, a British beauty retailer with 83 stores in the United Kingdom and Ireland. Funded with cash on hand and existing credit facilities, the deal gives Ulta a relatively low-cost entry into a new international market. Space NK will continue to operate independently, but the acquisition could provide valuable insights to inform Ulta’s broader strategy. The company also recently marked the soft opening of its first store in Mexico and plans to launch its inaugural location in the Middle East later this year.
Innovation continues on the digital front as well. Ulta is preparing to launch a third-party marketplace in the third quarter of 2025, following the lead of other major retailers like Best Buy. This move will allow Ulta to expand its product assortment without needing more shelf space or increasing its own inventory risk.
Not all expansion efforts are ongoing, however. Ulta recently announced that it will end its licensing deal with Target in August 2026. The partnership, which put mini Ulta shops in more than 600 Target stores, contributed little to Ulta’s bottom line. As Steelman candidly noted, “Royalty revenue from the deal last fiscal year was well below 1% of net sales.”
Despite the upbeat results, Ulta faces some challenges. The company’s former CFO, Paula Oyibo, left in late June 2025 after just a year in the role, and a permanent successor has not yet been named. For investors, tariffs remain a concern for the retail sector at large, but Ulta’s exposure is minimal. Only about 1% of its merchandise last fiscal year was direct imports, and most tariff-related costs are limited to store fixtures and supplies.
Steelman remains confident in the appeal of the beauty category, observing that “beauty enthusiasts tell us that they’re prioritizing their beauty regimens and remain strongly engaged within the category.” Even as consumers watch their budgets more closely and monitor pricing trends in response to tariffs, the desire for self-care and personal expression continues to drive demand.
Ulta’s second-quarter performance and revised outlook underscore its adaptability and resilience in a changing retail environment. With strategic brand partnerships, international expansion, and digital innovation, the company is positioning itself to remain at the forefront of the beauty industry. As the year unfolds, all eyes will be on how Ulta navigates evolving consumer trends and intensifying competition, but for now, the retailer’s glow shows no sign of fading.
