BOLINGBROOK, Ill. — Ulta Beauty reported a rebound in Q1 2025, posting 4.5% growth in net sales to $2.8 billion, up from $2.7 billion in the same quarter last year. The uptick follows a rare sales dip in Q4 2024 and reflects renewed momentum across key categories, particularly fragrance, body care, and sun care.
“Consumer engagement with beauty remains healthy, and our insights indicate beauty and wellness remain a top priority for beauty enthusiasts who tell us they’re more willing to make trade-offs in other discretionary areas to maintain their beauty regimens,” said Kecia Steelman, Ulta Beauty CEO and president. “At the same time, they’re cautious, and value is an increasingly important priority as they navigate ongoing wallet pressures.”
The Q1 performance follows Ulta’s “Ulta Unleashed” transformation plan, launched in response to a 1.9% sales decline in Q4. That initiative included streamlining operations, updating stores and inventory, and improving marketing and promotional execution.
Steelman noted early success in these efforts, indicating a strong consumer response to new brand launches and improved promotions. Ulta’s rewards program grew 3% to hit 45 million members, and fragrance sales, especially women’s, unisex, and Valentine’s Day gift sets, delivered double-digit growth.
“Fiscal 2025 is off to an encouraging start,” she said. “Amidst considerable macro noise and uncertainty, 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.”
While skin care and wellness rose in the high single digits, led by body care and sun care, hair care remained flat. Strength in color and accessories was offset by softness in tools and masks. Makeup performance was stable.
Ulta continues to expand its wellness portfolio, adding nine new brands online this quarter, including Garden of Life, Hatch Mama, and NodPod. Looking ahead, CFO Paula Oyibo highlighted “promo optimization” to balance growth and profitability while monitoring tariff-related cost pressures.
On the international front, Ulta is gearing up to open its first stores in Mexico City, Kuwait City, and Dubai later this year, marking its entry into global retail.
Following leadership changes earlier this year, including Steelman’s appointment as CEO, Ulta remains the largest beauty retailer in the U.S., with more than 1,451 stores nationwide. In Q1, it opened six new locations, relocated two, and remodeled four.
