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Ulta Beauty reported Q2 CY2025 results with revenue up 9.3% YoY to $2.79 billion, beating analyst estimates. GAAP profit was $5.78 per share, a 14.6% beat. The company raised its full-year revenue guidance to $12.05 billion and EPS guidance to $24.08, both exceeding analyst estimates. Market share gains, new brands, and international expansion drove the results.

Ulta Beauty reported its Q2 2025 results, showing a 9.3% year-over-year (YoY) increase in revenue to $2.8 billion, surpassing analyst estimates. The company also reported a GAAP profit of $5.78 per share, representing a 14.6% beat. Ulta Beauty raised its full-year revenue guidance to $12.05 billion and EPS guidance to $24.08, both exceeding analyst expectations [1].

The strong performance was driven by several key factors. Comparable sales grew by 6.7%, while the company added 45.8 million loyalty members, reflecting robust customer engagement. The company also expanded its international footprint through the acquisition of Space NK, which operates 83 stores in the U.K. and Ireland [1].

Operating margin fell to 12.4%, down 50 basis points from the previous year, despite a 90 basis point improvement in gross margin. This decline was attributed to reduced inventory shrink and more effective promotional strategies. The company expects to maintain a cautious approach to margins in the second half of the year, citing inflation, SG&A costs, and macroeconomic uncertainty [1].

Ulta Beauty's strategic focus on digital growth and international expansion is evident in its plans. The company is launching a curated online marketplace in Q3 and plans to open its first store in Mexico and Middle East later this year. These initiatives aim to enhance the guest experience and drive long-term sales growth [1].

Management remains optimistic about the company's prospects, noting that the first half of 2025 has been strong, with Q1 and Q4 being particularly robust. However, they caution that the second half of the year may face tougher comparisons and macroeconomic uncertainty [1].

In summary, Ulta Beauty's Q2 2025 results demonstrate strong revenue growth and customer engagement. The company's strategic focus on digital growth, international expansion, and operational improvements positions it well for future growth. Despite some margin pressures in the second half of the year, Ulta Beauty's long-term prospects remain promising.

References:
[1] https://www.ainvest.com/news/ulta-beauty-q2-2025-earnings-call-contradictions-operating-margins-unleashed-plan-prestige-makeup-performance-2508/