Ulta Beauty reports USD 3.9B net sales in Q4 FY25
The company reported solid performance despite challenges from an extra week in the prior year’s results.
USA – Ulta Beauty, Inc. has released its financial results for the fourth quarter and full fiscal year 2024, ending February 1, 2025.
Net sales for the fourth quarter reached USD 3.5 billion, down 1.9% from USD 3.6 billion in the prior year’s 14-week period, mainly due to the absence of the 53rd week that contributed about USD 181.9 million last year.
Comparable sales rose 1.5%, fueled by a 3.0% higher average ticket despite a 1.4% drop in transactions. For the full year, net sales grew 0.8% to USD 11.3 billion, supported by 60 net new stores, though offset by the prior year’s extra week.
Gross profit margin improved to 38.2% in the quarter from 37.7%, thanks to reduced inventory shrink, better channel mix, and stronger merchandise margins, despite higher supply chain costs.
Operating income stood at USD 516.3 million (14.8% of sales), nearly matching the prior year’s USD 517.1 million (14.5% of sales).
Net income was USD 393.3 million, or USD 8.46 per diluted share, up from USD 8.08 per share last year.
President and CEO Kecia Steelman highlighted the team’s strong execution during the holidays, exceeding expectations for revenue, profitability, and EPS.
She expressed optimism about Ulta Beauty’s business model, long-term strategy, and associate passion, noting fiscal 2025 investments to optimize operations and drive growth.
Cash and equivalents totalled USD 703.2 million at quarter-end, with inventories up 13% to USD 2.0 billion to support new launches, in-stock improvements, and store growth.
The company repurchased 620,053 shares for USD 249.5 million in the quarter and 2.5 million shares for USD 1.0 billion for the year, leaving USD 2.7 billion under its $3.0 billion program.
Ulta Beauty opened 9 net new stores in the quarter (66 for the year), remodeled 5 (41 for the year), and ended with 1,445 locations spanning 15.1 million square feet across 50 states.
For fiscal 20225 guidance, the company anticipates net sales of USD 11.5 billion to USD 11.6 billion, comparable sales flat to +1%, about 60 net new stores, and 40-45 remodels/relocations.
Operating margin is projected at 11.7% to 11.8%, diluted EPS at USD 22.50 to USD 22.90, with USD 900 million in share repurchases and capex of USD 425 million to USD 500 million.
In Q4, cosmetics led at 36% of sales (down from 39%), skincare at 23% (up from 22%), haircare steady at 19%, fragrance up to 17% from 15%, and services/other at 5% combined.
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