Ulta Beauty, Inc. has reported better-than-expected earnings for the first quarter ended May 3, 2025, propelling its stock up 9% in pre-market trading and contributing to an 18% surge over the past week. The beauty retailer delivered a solid performance with notable beats on both revenue and earnings per share (EPS), reflecting continued strength in consumer demand and operational efficiency.
Ulta Beauty Q1 Results
For Q1 FY2025, Ulta reported net sales of $2.85 billion, marking a 4.5% year-over-year increase from $2.73 billion in the same quarter last year. The company’s comparable sales rose by 2.9%, showing steady in-store and online demand growth.
Ulta’s gross profit for the quarter came in at $1.11 billion, representing 39.1% of net sales—nearly unchanged from the 39.2% margin reported in Q1 FY2024. Cost of sales was $1.73 billion, or 60.9% of net sales, up slightly from 60.8% in the prior-year quarter.
Selling, general, and administrative expenses increased to $710.6 million (24.9% of sales) from $665.9 million (24.4% of sales) a year ago, reflecting investments in marketing, labor, and infrastructure. Pre-opening expenses for new stores were $1.8 million, down from $2.9 million in Q1 FY2024.
Operating income for the quarter was $401.8 million, down marginally from $400.9 million a year earlier, but represented 14.1% of sales compared to 14.7% in the prior year.
Ulta reported a net interest expense of $3.5 million, compared to a $6.9 million expense in Q1 FY2024. Income before income taxes and equity net loss of affiliate stood at $405.3 million (14.2% of sales), slightly down from $407.8 million (15.0%) last year.
After accounting for an income tax expense of $99.6 million (flat at 3.5% of sales), and a minor equity net loss of affiliate of $0.6 million, Ulta’s net income for the quarter was $305.1 million, or 10.7% of sales—compared to $313.1 million (11.5%) in Q1 FY2024.
On a per-share basis, the company reported basic EPS of $6.72 and diluted EPS of $6.70, representing a 3.6% year-over-year increase from $6.51 and $6.47, respectively. These results significantly outperformed analyst expectations of $5.81 EPS and $2.79 billion in revenue.
Weighted average common shares outstanding were 45.36 million basic and 45.51 million diluted for the quarter, compared to 48.13 million and 48.38 million a year earlier.
Following the strong results, Wells Fargo raised its price target on Ulta Beauty shares from $315.00 to $350.00, citing stronger-than-expected financial performance and robust consumer engagement across the brand.
Ulta Beauty’s solid Q1 performance showcases the company’s resilience and appeal in the beauty retail space, especially in an environment where consumer preferences continue to evolve. The company’s ability to maintain gross margins, grow sales, and beat earnings expectations positions it well for continued momentum through the rest of FY2025.
With a stock up 9% in pre-market trading and 18% over the past week, Ulta’s momentum reflects strong consumer engagement, solid execution, and continued leadership in the beauty retail space. The company’s ability to drive growth while maintaining margins in a competitive environment bodes well for the remainder of FY2025.
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