Beauty retailer Ulta has reported a strong first quarter, with net sales going up by 4.5% to $2.8 billion while its comparable sales went up by 2.9%.
Ulta Beauty also saw its gross profit go up by 4.2% to $1.11 billion and ended the quarter with earnings per share of $6.70 compared to $6.47 in the year prior.
The retailer is showing signs of improvement after posting mixed results amid a challenging market due to the impact of additional tariffs.
The cosmetics giant had previously partnered with Lucky to track its in-store inventory, which resulted in merchandise inventory increasing by 11% in its first quarter.
The beauty retailer recently ramped up its omnichannel experience by introducing a third-party marketplace.
Despite the solid performance, the company addressed the potential impacts of tariffs and how beauty retail has a competitive advantage.
Keisha Steelman, president and CEO at Ulta Beauty said: “At the same time, they are cautious, and value is an increasingly important priority as they navigate ongoing wallet pressures.
“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.”
However, the company increased its guidance and is projected to earn $11.5 billion to $11.7 billion in net sales for the full fiscal year 2025 and comparable sales growth of between 0% to 1.5%.
Meanwhile, e.l.f. cosmetics announced price increases for its products and blamed tariffs on the decision.
Cosmetics retailer Estee Lauder also reported a dip in its sales due to the headwinds from tariffs and a slowdown in spending.
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