Ulta’s third quarter was met with a positive market response, driven by robust sales growth and ongoing market share gains in both mass and prestige beauty categories. Management credited the quarter’s momentum to enhanced in-store experiences, an expanding loyalty program, and a strong slate of exclusive brand launches. CEO Kecia Steelman pointed to double-digit e-commerce growth and a record 46.3 million loyalty members as key contributors, emphasizing the company’s ability to “accelerate our top-line growth, increase our market share, and drive our results.”
Is now the time to buy ULTA? Find out in our full research report (it’s free for active Edge members).
Ulta (ULTA) Q3 CY2025 Highlights:
- Revenue: $2.86 billion vs analyst estimates of $2.72 billion (12.9% year-on-year growth, 5.2% beat)
- EPS (GAAP): $5.14 vs analyst estimates of $4.60 (11.7% beat)
- Adjusted EBITDA: $385.2 million vs analyst estimates of $349.4 million (13.5% margin, 10.3% beat)
- The company lifted its revenue guidance for the full year to $12.3 billion at the midpoint from $12.05 billion, a 2.1% increase
- EPS (GAAP) guidance for the full year is $25.35 at the midpoint, beating analyst estimates by 3.3%
- Operating Margin: 10.8%, down from 12.6% in the same quarter last year
- Locations: 1,500 at quarter end, up from 1,437 in the same quarter last year
- Same-Store Sales rose 6.3% year on year (0.6% in the same quarter last year)
- Market Capitalization: $26.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Ulta’s Q3 Earnings Call
- Lorraine Hutchinson (Bank of America): asked about the outlook for brand-driven price increases and whether recent ticket growth trends will persist. CEO Kecia Steelman and Interim CFO Chris Lialios explained that brands are approaching pricing thoughtfully, balancing tariff impacts with consumer affordability, and expect only modest price increases moving forward.
- Steve Forbes (Guggenheim Securities): inquired about rising e-commerce and app engagement. Steelman credited new app features and digital personalization, stating, “We’re really pleased with what we’re seeing,” and emphasized that 80% of business still comes from stores, showing strength in both channels.
- Anna Andreeva (Piper Sandler): pressed for detail on SG&A growth and expectations for 2026. Steelman confirmed 2025 is an investment-heavy year and said SG&A would be more tightly managed next year, with further specifics to be shared in March.
- Rupesh Parikh (Oppenheimer): questioned the new product pipeline for 2026. Steelman expressed confidence in the balance and depth of planned launches, highlighting ongoing merchant focus on innovation as a driver for future growth.
- Ike Boruchow (Wells Fargo): asked about inventory shrink improvements and sustainability of benefits. Lialios confirmed modest improvements in Q3 and expects continued progress, noting ongoing initiatives to further reduce shrink as a tailwind for margins.
Catalysts in Upcoming Quarters
In the upcoming quarters, our team will be closely monitoring (1) the ramp-up of digital initiatives and app engagement for signs of sustained omni-channel growth, (2) the ability to manage SG&A and operating margin as recent technology and supply chain investments roll off, and (3) guest response to new exclusive brand launches and expanded wellness offerings. Expansion into international markets and execution of the new UB Marketplace will also be important indicators of Ulta’s evolving growth profile.
Ulta currently trades at $600.22, up from $536 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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