Ulta Beauty Guides 6–7% Sales Growth, EPS $28.05–28.55; Shares Plunge 9.4%
Ulta Beauty’s FY2025 net sales rose 9.7% to $12.39bn, while operating income dipped to $1.53bn and net income to $1.15bn. It guided FY2026 sales growth of 6–7%, comps of 2.5–3.5%, 6–9% operating income rise and EPS of $28.05–28.55, triggering a 9.4% share drop as analysts cut forecasts.
1. Fiscal 2025 Financial Performance
Ulta Beauty reported FY2025 net sales of $12.39 billion, up 9.7% year-over-year, driven by comparable sales growth, Space NK integration and new stores. Operating income fell to $1.53 billion (12.4% of sales) and net income declined to $1.15 billion, while Q4 net sales rose 11.8% to $3.89 billion and quarterly net income dropped to $356.6 million.
2. Fiscal 2026 Guidance
The company forecast FY2026 net sales growth of 6–7%, comparable sales increases of 2.5–3.5%, operating income growth of 6–9% and diluted EPS of $28.05–28.55, backing investments in new store openings, brand launches and supply-chain optimization.
3. Market Reaction and Analyst Actions
Ulta’s shares fell 9.4% on the guidance and profit outlook, with eight analysts cutting price targets and broader concerns over rising marketing expenses. Options trading surged, indicating investor expectations of further near-term downside pressure.