Ulta Beauty Q1 Sales Jump 11.1% to $3.2B, EPS Guidance Raised
ULTA•Ulta Beauty reported Q1 net sales rose 11.1% to $3.2 B and comps gained 5.3% driven by a 3.7% ticket increase. Management raised the lower end of EPS guidance, expects SG&A leverage in H2 after double-digit H1 growth and sees early success from TikTok Shop exclusives boosting traffic.
1. Q1 Financial Results
Ulta Beauty posted Q1 net sales of $3.2 billion, up 11.1% year-over-year, while comparable sales rose 5.3% led by a 3.7% increase in average ticket. This performance underpins management’s confidence in top-line momentum and guest demand across categories.
2. SG&A Leverage and Guidance
The CFO raised the lower end of profit and EPS guidance, citing expected double-digit SG&A growth in H1 from Space NK integration and prior investments. In H2, SG&A is projected to step down to low-single-digit growth as those investments anniversary, enhancing operating leverage.
3. Marketing Investments and Category Returns
The CEO highlighted strong returns on marketing spend in the fragrance category, driven by Mother’s Day promotions and expanded in-store assortments. Investments in exclusive brands and UB Media tools are delivering elevated guest engagement and category uplift.
4. TikTok Shop and Guest Acquisition
Ulta’s TikTok Shop pilot, featuring Only at Ulta exclusives, is designed to drive both e-commerce sales and in-store traffic. The initiative targets younger demographics to expand loyalty program membership and broaden the guest base.
