• by Sarah Mahoney  @mahoney_sarah, June 2, 2025

Ulta Beauty’s latest results suggest that, even in a turbulent economy, shoppers continue to prioritize beauty—especially when it’s served with innovation, exclusivity, and well-timed cultural relevance. While much of the category has slowed, Ulta gained traction by revamping marketing, launching new brands, and investing in in-store and digital improvements.

“We are bringing the Ulta Beauty brand to life in new and exciting ways,” said Kecia Steelman, president and CEO, on the company’s earnings call. “Many consumers indicate that they’re leaning into beauty as a comfort and escape from the stress of macro uncertainty, and we expect this emotional connection will support the category’s resilience going forward.”

Ulta reported net sales of $2.85 billion for the first quarter of the fiscal year, up 4.5% year-over-year. Comparable store sales increased 2.9%. Net income rose 11% to $305 million, all ahead of Wall Street expectations.

Steelman pointed to early wins from the company’s “Ulta Beauty Unleashed” strategy. “Guests responded positively to key actions that we took to drive our business, including improved execution, exciting new and exclusive brand launches, evolved promotional plans, and relevant marketing,” she said.

The retailer introduced 19 new brands, many of them exclusive, and saw strong results in fragrance (up double digits), skincare (up high single digits), and wellness. The launch of Beyoncé’s Cécred haircare line and a Super Bowl campaign celebrating women in sports helped elevate brand visibility and traffic across all channels.

The company’s loyalty program grew to a record 45 million members, and digital sales rose 10%, with 60% of ecommerce volume now coming through the app. New digital features like “Shop My Store” and real-time promotion tweaks contributed to stronger personalization and higher engagement.

The results reflect energy from a new C-suite. Steelman rose to CEO in January, appointing Kelly Mahoney, a longtime Ulta employee, to CMO the following month.

Importantly, Ulta also gained share, a key point for analysts watching the retailer’s ongoing face-off with Sephora. “Ulta’s performance stands out in a very difficult beauty backdrop,” wrote Rupesh Parikh, an analyst at Oppenheimer, who points out Ulta is now outperforming Sephora at Kohl’s.

Krisztina Katai, who follows the company for Deutsche Bank, cited stronger execution. “Ulta delivered its strongest ecommerce growth since the fourth quarter of 2021,” she wrote, underscoring improvements in personalization, loyalty, and brand assortment.

Even as Ulta modestly raised full-year guidance, executives emphasized caution about the second half of the year, citing consumer uncertainty and evolving tariff impacts.

Still, Steelman expressed confidence that the company’s brand-building, loyalty tools, and cross-category innovation will keep sales gains moving. “There is still work to be done,” she said, “but I know we have the right team and plans in place to build on our momentum and drive sustainable long-term growth.”