Total Revenue

–1.9% decline (from $3,554.3M in Q4 2024 to $3,487.7M in Q4 2025)

The slight decrease in total revenue is attributed to challenging market conditions and competitive pressures that led to increased promotional activity and pricing adjustments compared to the previous period, which had benefited from a higher revenue base. " " " "

Operating Income

Not explicitly quantified YoY

At $516.3M in Q4 2025, operating income reflects tighter margin conditions; past periods showed that cost pressures such as higher SG&A and supply chain expenses forced management to implement operational efficiencies to control expenses compared to earlier quarters. "

Net Income

Not explicitly quantified YoY

Net income of $393.3M continues to reflect controlled expense management amidst a lower topline. This performance builds on previous period initiatives aimed at mitigating margin pressure from promotional and operational cost increases. " "

Basic EPS

– (Derived from current period)

Basic EPS of $8.44 is the result of a combination of the lower revenue environment and cost management measures – including share repurchase strategies – that helped boost per share earnings relative to historical performance. "

Gross Profit / Margin

Gross profit of $1,333.7M; gross margin 38%

The gross profit and reduced margin indicate that while absolute profit levels remain robust, increased promotional activity and higher input costs (as observed in past periods) have compressed margins compared to prior periods with higher merchandise margins. "

Cash and Cash Equivalents

$703.2M (reflecting prior cash funds adjustments)

The cash balance of $703.2M is influenced by prior period trends, including significant share repurchases and capital expenditures, which reduced cash levels even as the company continued to invest in operations and working capital management. "

Total Assets

$6,001.7M (an increase from the prior period level)

Total assets grew to $6,001.7M as a result of continued investments in merchandise inventories and capital expenditures – trends consistent with previous periods, where store expansion and supply chain investments added to the asset base. "

Stockholders’ Equity

$2,488.4M (reflecting a net increase compared to Q4 2024)

The increased stockholders’ equity derives from a favorable mix of retained earnings from net income and moderated reductions from treasury stock repurchases, which contrasts with previous periods where higher repurchases had a downward impact. "

Net Sales

FY 2025

no prior guidance

$11.5B–$11.6B "

no prior guidance

Comparable Sales Growth

FY 2025

no prior guidance

flat to up 1% "

no prior guidance

Operating Profit

FY 2025

no prior guidance

decrease in the low double-digit range "

no prior guidance

Operating Margin

FY 2025

no prior guidance

11.7%–11.8% of net sales "

no prior guidance

Diluted EPS

FY 2025

no prior guidance

$22.50–$22.90 "

no prior guidance

Capital Expenditures

FY 2025

no prior guidance

$425M–$500M (with store, supply chain/IT, maintenance details) "

no prior guidance

Depreciation

FY 2025

no prior guidance

$290M–$300M "

no prior guidance

Gross Margin

FY 2025

no prior guidance

Expected to de‐leverage "

no prior guidance

SG&A Expense

FY 2025

no prior guidance

Increase of 10% "

no prior guidance

Net Sales

FY 2024

$11.1B–$11.2B "

no current guidance

no current guidance

Comparable Sales Growth

FY 2024

negative 1% to flat "

no current guidance

no current guidance

Operating Margin

FY 2024

12.9%–13.1% "

no current guidance

no current guidance

Diluted EPS

FY 2024

$23.20–$23.75 "

no current guidance

no current guidance

Capital Expenditures

FY 2024

$400M–$425M "

no current guidance

no current guidance

Store Openings

FY 2024

60–65 net new stores "

no current guidance

no current guidance

Store Remodels/Relocations

FY 2024

40–45 stores "

no current guidance

no current guidance

Comparable Sales

Q4 2025

Expected to decline in the low single‐digit range "

no current guidance

no current guidance

Operating Margin

Q4 2025

11.6%–12.4% "

no current guidance

no current guidance

Loyalty Program Growth & Customer Engagement

Q1 2025 mentioned strong loyalty expansion with a 6% growth in rewards membership, targeted promotions, digital engagement via app performance, and robust social media efforts. " " Q2 2025 emphasized healthy growth (5% increase), enhanced tier segments through initiatives such as Member Love and improved digital engagement. " " Q3 2025 reported 5% growth with reactivation of lapsed members and deeper personalization across channels. " " "

In Q4 2025, the loyalty program grew 3% in 2024 to a record 44.6 million members. The focus shifted further toward accelerated personalization initiatives, real‑time content delivery, and enhanced app and website experiences. " "

Consistent emphasis on loyalty remains a core strength with evolving digital personalization. The growth rate is slightly lower in Q4, but the strategy increasingly centers on enhancing customer engagement and retention through tailored digital experiences.

Competitive Pressures & Market Share Erosion

In Q1 2025, competitive intensity was noted with an unprecedented number of new points of distribution challenging market share, although overall share was held via improved digital and in‑store metrics. " " Q2 2025 highlighted over 1,000 new distribution points and a decline in store transactions impacting prestige beauty share. " " Q3 2025 continued to discuss significant competitive pressures with many stores affected by new openings, yet reported some stabilization in market share through strategic promotional adjustments. " " "

In Q4 2025, executives reiterated the impact of accelerated competitive openings—over 90% of stores have been affected—and rising online/offline competitive intensity. They emphasized strategic responses, including marketing investments under the Ulta Beauty Unleashed plan to defend and recapture market share. " " " "

Persistent pressure with mixed performance. The competitive challenge remains intense across periods, although Q4 reflects a defensive tactical shift to stabilize and incrementally recover market share despite ongoing distribution pressures.

Brand Partnerships & Exclusive Collaborations

Q1 2025 discussed robust partnerships with exclusives such as Morphe, Polite Society, and Live Tinted that contributed to new member acquisition and brand differentiation. " " " Q2 2025 focused on launching and expanding exclusive brands like ILIA Beauty, Naturium, and others via the Spark program, while leveraging key legacy brands. " " " Q3 2025 highlighted notable collaborations such as the Wicked and Mini Brands collections, along with fresh makeup and skincare launches driving engagement. " "

In Q4 2025, Ulta Beauty relaunched its Ulta Beauty Collection and introduced 40 new brands—including exclusives such as XO KHLOÉ, NOYZ, WYN BEAUTY, as well as guest favorites—which underscores a continued commitment to curate an exclusive and differentiated brand portfolio. " "

Steady and increasingly aggressive focus on exclusive collaborations. While prior periods built a strong foundation through partnerships, Q4 reinforces the strategy with an expanded brand portfolio aimed at differentiating the offering amid competitive pressures.

Digital Acceleration & Omnichannel Experience

Q1 2025 saw completion of the digital store transition, expansion of DoorDash partnerships, new digital buying guides, and significant app-driven e-commerce sales. " " " Q2 2025 detailed improvements in site functionality, personalized recommendations, and further enhancements in app engagement driving both online and in‑store sales. " " Q3 2025 continued with enhanced digital merchandising, AI tools (e.g., GLAMlab 2.0), virtual try-on, and community engagement via UB Community while strengthening omnichannel capabilities. " "

In Q4 2025, Ulta Beauty is intensifying digital acceleration with new features on its app and website, refined real‑time personalization, and enhanced omnichannel fulfillment options such as improved BOPIS, ship-from-store, and same‑day delivery solutions. " " " "

Consistent momentum with ongoing innovation. The digital and omnichannel strategies continue to evolve, with Q4 emphasizing refined personalization and seamless integration between digital and physical channels—a positive outcome that builds on earlier investments.

Sales Performance & Comparable Sales Trends

Q1 2025 showed net sales growth of 3.5% and comparable sales up by 1.6%, driven by net new store openings and increased credit card and royalty revenue. " " Q2 2025 highlighted a modest increase in net sales (0.9%) but noted a 1.2% decline in comparable sales due to lower transactions, with mixed performance between stores and digital channels. " " " Q3 2025 reported net sales of $2.5 billion with comparable sales up by 0.6%, and strong digital (mid-single-digit growth) alongside modest in‑store gains. " "

In Q4 2025, net sales decreased by 1.9% to $3.5 billion; however, comparable sales increased by 1.5% mainly due to a 3% rise in average ticket, with positives in both store and digital channels—reflecting a balanced but cautious sales outlook. "

Mixed but cautiously optimistic. Although Q4 experiences a slight decline in net sales, the improvement in comparable sales via higher average ticket indicates a nuanced picture, with the focus on value and channel efficiencies offsetting volume challenges seen in previous periods.

Margin Pressure & Gross Margin Management

Q1 2025 recorded an 80‑basis point decline in gross margin (down to 39.2%), driven by heavier promotions, adverse brand mix, and higher shrink in prestige segments. " " Q2 2025 saw a 100‑basis point decrease in gross margin to 38.3% due to lower merchandise margins from aggressive promotions and fixed cost deleverage, partially offset by lower shrink. " " Q3 2025 observed a 20‑basis point drop to 39.7% with pressures from promotions and store cost deleverage, although some benefits came from lower transportation costs and improved fixture investments. " " "

In Q4 2025, margin pressure persists with expectations of further deleveraging mainly from store occupancy and supply chain costs, yet the company reported a quarter‑end gross margin improvement (up by 50 basis points to 38.2%) due to lower inventory shrink and operational initiatives. " " " "

Ongoing challenges with partial offsets. Margin pressures remain a central concern as high fixed costs and competitive promotions continue to weigh on margins, though targeted efforts such as shrink reduction are starting to yield modest improvements.

Promotional Strategy Effectiveness

Q1 2025 highlighted the evolution of tentpole events and targeted offers (e.g., the “member love” initiative) that drove both traffic and basket size, albeit with an expected trade‑off on merchandise margin. " " Q2 2025 saw a mixed picture where strong digital sales were contrasted with incremental promotions in stores not delivering the expected lift, prompting strategic adjustments. " " " " Q3 2025 noted improved promotional effectiveness through optimized loyalty offers and successful events like 21 Days of Beauty and a reimagined Hair Event, driven by refined targeting. " " " "

In Q4 2025, Ulta maintained a rational promotional environment with a continued focus on optimizing timing and execution of offers. The strategy now leverages detailed member insights and value messaging to balance discounting while mitigating margin erosion. " "

Steady optimization. Promotional tactics have been consistently refined over the periods, with Q4 continuing the trend of balancing effective guest incentives against margin pressures, reflecting lessons learned from earlier periods and improved tactical execution.

Strategic Investments & Reinvestment Strategy

Q1 2025 centered on technology-driven investments including ERP transitions, digital store platform upgrades, and the introduction of mobile POS to boost engagement. " " " Q2 2025 expanded on this with significant CapEx investments (approximately $400–$450 million) dedicated to store remodels, IT enhancements, and fixtures, alongside completing ERP transformation, despite some operational disruptions. " " " " Q3 2025 emphasized reinvestment in brand expansion, UB Media capabilities, and initiatives to secure long‑term growth while targeting operating margins above 11%. " " "

In Q4 2025, Ulta outlined a robust reinvestment strategy with guest‑facing capital outlays of $425–$500 million aimed at store improvements, supply chain and IT investments, and a renewed focus on brand building and digital acceleration as part of the Ulta Beauty Unleashed plan. " " "

Consistent and strategic reinvestment. Investments have steadily increased from technology upgrades to guest‑facing and brand building initiatives. Q4 continues this trend, reflecting long‑term commitment to operational excellence and market share growth despite near‑term margin pressures.

Expansion into the Wellness Category (Emerging Topic)

Q1 and Q2 2025 did not mention wellness expansion. Q3 2025 introduced initial steps with the launch of wellness brands such as The Honey Pot and Joylux, and teased upcoming initiatives including the launch of Apothékary. "

In Q4 2025, there is a significant expansion with plans to introduce at least 20 new wellness brands, a redesign of in‑store wellness presentation, and creation of a dedicated leadership team to drive growth in categories like nutrition, mindfulness, and sleep. Additionally, a new integrated marketplace for beauty and wellness is set to launch later in 2025. " "

Rapid emergence and growing strategic focus. Wellness, an entirely new emphasis from earlier periods, is now a strategic growth engine with enhanced leadership and cross‑category integration, indicating a substantial impact on future business direction.

Decline in Makeup Category Focus (No Longer Emphasized)

Q1 2025 observed a mid‑single‑digit decrease in makeup comparables, impacted by prior-year extraordinary growth and increased distribution, with soft performance in some mass segments. " Q2 2025 reported a similar mid‑single‑digit decline as planned softness and brand mix challenges offset gains from new launches. " Q3 2025 noted a low‑single‑digit slump in makeup, where innovative prestige launches managed to counterbalance weaknesses in mass makeup. "

In Q4 2025, the makeup category again experienced a mid‑single‑digit decline, driven largely by softness in mass makeup, continuing a trend of reduced emphasis on this segment as consumer focus shifts toward more premium and innovative offerings. "

Consistent decline in mass makeup focus. While premium and exclusive segments may be performing better, the overall makeup category—especially in mass segments—remains under pressure, reinforcing the shift away from traditional makeup lines.

Reduced Emphasis on Inventory Shrink & Unfavorable Brand Mix

Q1 2025 addressed higher inventory shrink impacting margins along with adverse brand mix in prestige categories, partially offset by fixture investments and evolving promotional tactics. " " Q2 2025 highlighted that while proactive investments reduced shrink (with year‑to‑date shrink flat), unfavorable brand mix and heavy promotional activity led to a decline in merchandise margins. " " Q3 2025 reported stable or slightly lower shrink but continued challenges with an unfavorable brand mix that weighed on profitability. "

In Q4 2025, improved inventory management is evident as investments in protective fixtures, enhanced training, and process improvements led to shrink 20 basis points lower than the prior year. However, unfavorable brand mix remains a challenge as some brands underperform due to broader distribution and lower social engagement, though efforts to drive exclusive brand building are underway. " "

Incremental operational improvements amid persistent mix challenges. Inventory shrink is being successfully reduced, but the issue of unfavorable brand mix continues to erode margins, prompting ongoing efforts to realign brand strategies through selective exclusivity and enhanced merchandising.