In This Article:
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Net Sales: Increased 4.5% to $2.8 billion.
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Operating Profit: 14.1% of sales.
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Diluted Earnings Per Share (EPS): $6.70.
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Comparable Sales: Increased 2.9%.
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Gross Margin: Decreased 10 basis points to 39.1%.
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SG&A Expenses: Increased 6.7% to $711 million, 24.9% of sales.
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Cash and Cash Equivalents: $455 million at quarter end.
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Total Inventory: Increased 11.3% to $2.1 billion.
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Capital Expenditures: $79 million for the quarter.
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Share Repurchase: $359 million, 987,000 shares repurchased.
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New Stores: Opened six new stores, relocated two, remodeled four.
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Updated Fiscal 2025 Net Sales Guidance: $11.5 billion to $11.7 billion.
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Updated Fiscal 2025 EPS Guidance: $22.65 to $23.20 per share.
Release Date: May 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ulta Beauty Inc (NASDAQ:ULTA) reported a 4.5% increase in net sales to $2.8 billion for the first quarter of fiscal 2025.
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The company achieved a 2.9% increase in comparable sales, driven by a 2.3% increase in average ticket and a 0.6% increase in transactions.
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Ulta Beauty Inc (NASDAQ:ULTA) expanded its active loyalty member base to a record 45 million, up 3% year-over-year.
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The company launched 19 new brands during the quarter, many of which are exclusive to Ulta Beauty Inc (NASDAQ:ULTA), contributing to strong guest engagement.
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E-commerce sales increased by about 10%, with more than 60% of these sales coming from the app, indicating strong digital engagement.
Negative Points
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Operating margin decreased by 60 basis points to 14.1% of sales, reflecting increased store payroll and benefits.
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Prestige skin care was flat for the quarter, while mass skin care decreased modestly.
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The hair care category was roughly flat, with growth in hair color and accessories offset by decreases in hair care tools and mass hair care.
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Ulta Beauty Inc (NASDAQ:ULTA) anticipates more uncertainty in the second half of the year, with potential comp sales growth ranging from down low single digits to up modestly.
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The company is cautious about the evolving global trade landscape and its potential impact on consumer wallet pressures, especially in the second half of the year.
Q & A Highlights
Q: Can you discuss the progress and any surprises with the Ulta Beauty Unleash Plan? A: Kecia Steelman, President and CEO, highlighted that the Ulta Beauty Unleash Plan is progressing well, with significant improvements in in-store execution, guest experience, and marketing efforts. The plan's focus on execution and assortment newness has resonated with guests, contributing to the positive results in Q1.