01—Abstract
Summary
Summary of the 10-K filed March 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Ulta Beauty, Inc. reported fiscal 2025 (year ended January 31, 2026) net sales of $12.39 billiona, up from $11.30 billion in fiscal 2024, with comparable sales increasing 5.4% driven by a 3.3% increase in average ticket and a 2.0% increase in transactions.
Gross profit rose to $4.85 billionb (39.1% of net sales versus 38.8%), but SG&A expenses grew to $3.30 billion, or 26.6% of net sales versus 24.9%, primarily due to higher incentive compensation, store payroll and benefits, and strategic investments. Operating income declined to $1.53 billion from $1.56 billion, and net income fell to $1.15 billion ($25.64 diluted EPS) from $1.20 billion ($25.34 in fiscal 2024, now $25.64 in fiscal 2025 per diluted share). The year included the acquisition of Space NK, a U.K. and Ireland luxury beauty retailer, for total net assets acquired of $399.2 million, including $213.8 million of goodwill.
Ulta ended the year with 1,591 stores (1,505 in the U.S. and 86 Space NK stores), 67 new stores opened, and cash and cash equivalents of $424.2 millionc. Operating cash flow was $1.50 billion, capital expenditures were $434.8 million, and the company repurchased $898.5 million of common stock. As of January 31, 2026, $1.8 billion remained available under its $3.0 billion October 2024 share repurchase program.
Management's strategy, Ulta Beauty Unleashed, is organized around three priorities: driving core business growth, scaling new accretive businesses (wellness, UB Marketplace, international expansion, and UB Media), and aligning the company's foundation for future success. The filing notes that the Ulta Beauty at Target shop-in-shop partnership will not be renewed when the current agreement concludes in August 2026. Management expects capital expenditures not to exceed $450 milliond in fiscal 2026 and anticipates continued inflationary and macroeconomic pressures.
02—Key points
Key Highlights
- Net sales rose 9.7% to $12.39 billion in fiscal 2025, with comparable sales up 5.4%, driven by a 3.3% increase in average ticket and a 2.0% increase in transactions.
- Gross margin improved to 39.1% of net sales from 38.8%, primarily due to lower inventory shrink and higher merchandise margin.
- SG&A expenses increased 17.4% to $3.30 billion, deleveraging to 26.6% of net sales from 24.9%, reflecting higher incentive compensation, store payroll, and strategic investments.
- Net income declined to $1.15 billion from $1.20 billion, with diluted EPS of $25.64 versus $25.34 in fiscal 2024.
- Acquired Space NK for total net assets acquired of $399.2 million, including $213.8 million of goodwill; the company now operates 86 Space NK stores in the U.K. and Ireland.
- Repurchased $898.5 million of common stock during the year, with $1.8 billion remaining under the October 2024 $3.0 billion authorization.
- Ulta Beauty at Target shop-in-shop partnership will not be renewed when the agreement concludes in August 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Ulta Beauty kept $0.09.
- Revenue$12.39B100.0%
- Cost of revenue−$7.55B60.9%
- Gross profit$4.85B39.1%
- Operating costs−$3.31B26.7%
- Operating income$1.53B12.4%
- Interest, other & tax−$380.0M3.1%
- Net income$1.15B9.3%
Where FY2026 revenue went
$12.39B- Cost of revenue: $7.55B, 61% of revenue
- SG&A: $3.30B, 27% of revenue
- Net income: $1.15B, 9.3% of revenue
- Interest, other & tax: $380.0M, 3.1% of revenue
Kept 9.3% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 26, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $12.39B$11.30B | +9.7% |
| Cost of Revenue | $7.55B$6.91B | +9.3% |
| Gross Profit | $4.85B$4.39B | +10.4% |
| SG&A Expenses | $3.30B$2.81B | +17.4% |
| Operating Income | $1.53B$1.56B | −2.0% |
| Net Income | $1.15B$1.20B | −4.0% |
| EPS (Basic) | $25.72$25.44 | +1.1% |
| EPS (Diluted) | $25.64$25.34 | +1.2% |
| Shares Outstanding (Basic) | 44.84M47.21M | −5.0% |
| Shares Outstanding (Diluted) | 44.99M47.40M | −5.1% |
05—Questions
Frequently Asked Questions
How did Ulta Beauty perform financially in fiscal 2025?
Net sales grew 9.7% to $12.39 billion, comparable sales rose 5.4%, and gross profit increased to $4.85 billion. However, SG&A expenses grew faster than sales, reducing operating income to $1.53 billion from $1.56 billion and net income to $1.15 billion from $1.20 billion.
What drove the increase in SG&A expenses?
The filing attributes the deleverage of SG&A expenses, which rose to 26.6% of net sales from 24.9%, primarily to higher incentive compensation, higher store payroll and benefits, higher corporate overhead due to strategic investments, and higher store expenses.
What is the status of Ulta's capital allocation and liquidity?
Cash and cash equivalents were $424.2 million at year-end, and operating cash flow was $1.50 billion. Capital expenditures were $434.8 million, and the company repurchased $898.5 million of stock. There was $62.3 million outstanding under credit facilities, and the company expects capital expenditures not to exceed $450 million in fiscal 2026.
What does the Ulta Beauty at Target partnership ending mean for the company?
Ulta Beauty and Target announced a mutual agreement not to renew the shop-in-shop partnership when the current agreement concludes in August 2026. Both companies stated they remain committed to a seamless shopping experience through the end of the partnership.
What are management's strategic priorities going forward?
Under the Ulta Beauty Unleashed plan, management is focused on driving core business growth through operational excellence and an elevated go-to-market approach, scaling new accretive businesses including wellness, UB Marketplace, international expansion, and UB Media, and aligning the company's foundation by streamlining its cost structure.
06—Continue