Ulta Beauty: Strong Q1 2025, ‘Released’ Strategy & Future Outlook

Steelman is certain that Ulta’s advertising and marketing approach, created to stimulate exhilaration, understanding, involvement and keep devoted consumers, was off to a solid and restored beginning. “We turned on key minutes with precision,” she stated. “Our Super Dish campaign, which commemorated women in sports, delivered record social impacts and involvement, amplifying reach and cultural importance.” The chief executive officer likewise highlighted the success of the brand name’s inaugural elegance festival, Ulta Charm World, and ending up being the sponsor for Beyoncé’s Cowboy Carter trip, which included curated charm looks in addition to exclusive hair product varieties throughout the United States leg of the scenic tour.

Ulta’s Marketing & Brand Strategy

Ulta Beauty reported a better-than-expected efficiency for its initial quarter in 2025 and increased its full-year outlook from $11.6 billion to $11.7 billion. In after-hours trading, the elegance retailer’s stock leapt 8.4 per cent.

Q1 2025 Financial Performance

The store’s ‘Released’ technique, revealed in March to battle reducing sales, locations focus on streamlining management, boosting store discussion and supply levels, and expanding its brand name portfolio throughout charm and health. Like with several of the bigger charm players, such as Coty and Estée Lauder Business (ELC), makeup proceeds to deal with headwinds for the seller as it grapples with dupes and customers’ recurring choice for barely-there looks. The Chief executive officer likewise highlighted the success of the brand name’s inaugural beauty event, Ulta Charm Globe, and ending up being the enroller for Beyoncé’s Cowboy Carter tour, which included curated appeal looks as well as unique hair item selections across the United States leg of the tour.

To prepare, Steelman claimed the retailer will increase down on its in-store customer experience. Plus, Ulta Beauty will remain to drive strong advertising projects and focus on bringing freshness and exclusives to its shelves. “It’s about being focused on controlling what we can manage in an ever-changing and quite dynamic atmosphere,” she wrapped up.

Key Sales Trends & Categories

By category, fragrance sales were up 11 percent, compared to the same period a year prior, skincare and health raised 25 per cent, while services (such as hairdresser) were flat, adding 4 percent in net sales. Haircare sales dropped 1 percent year-on-year to 18 percent, and cosmetics went down 2 per cent to 40 per cent for the quarter. On the financier phone call, Steelman highlighted scent as the merchant’s best carrying out category, driven by freshness in ladies’s and sex neutral fragrance brands along with the likes of XO Khloé by Khloé Kardashian, Sound, Valentino and Billie Eilish.

The skincare and health category saw development in suncare, bodycare and health, with brand-new brands like Tatcha, Naturium and Inua driving customer costs. Interest in Sol de Janeiro and Touchland, the trending hand sanitiser brand name, likewise remains to thrill customers in-store. Nevertheless, Steelman stated that skin care alone is verifying to be a difficulty; its eminence skincare classification was flat for the quarter, while mass skincare decreased decently.

Like with much of the bigger appeal gamers, such as Coty and Estée Lauder Business (ELC), makeup remains to encounter headwinds for the store as it faces customers and dupes’ continuous preference for barely-there appearances. Steelman claimed there are eco-friendly shoots, nevertheless. “In-store, engagement with newer brands like Ilia, Milk Makeup and Dibs, as well as exclusive newness from Mac Cosmetics and Lancôme, offset headwinds,” she claimed.

Focusing on Customer Experience

“Fiscal 2025 is off to an encouraging beginning with stronger-than-expected efficiency. Our Ulta Appeal ‘Let loose’ strategy is resonating with visitors, energising our group and sustaining development,” said Kecia Steelman, president and CEO, in a statement. The seller’s ‘Released’ strategy, introduced in March to combat reducing sales, areas focus on simplifying leadership, boosting shop discussion and inventory levels, and expanding its brand profile across charm and health. “The operating environment is liquid, and our expectation reflects unpredictability around how customer need can develop. Our team believe our model uniquely places us to win, and we will certainly remain to concentrate on offering our visitors while staying dexterous as we relocate through the year.”

Revenues period might be bringing mixed outcomes on the charm front, but for one merchant things are searching for. Ulta Elegance reported a better-than-expected performance for its first quarter in 2025 and elevated its full-year outlook from $11.6 billion to $11.7 billion. Internet sales raised 4.5 percent to $2.8 billion in the quarter finished 3 May 2025, defeating analyst expectations of $2.7 billion. In after-hours trading, the charm retailer’s supply jumped 8.4 percent.

“While the charm group has actually traditionally been durable through financial declines, it has not been immune to consumer stress. For Ojibow, the first quarter was favorable, but she is conscious that one quarter does not make a trend.

Ulta’s equivalent store sales– the sales for shops open in the last 14 months, plus shopping sales– raised 2.9 percent year-on-year. Steelman stated ecommerce sales success was down to its app use and engagement among consumers (greater than 60 per cent of e-commerce sales are made through the app).