ULTA Records Q2 Sales of $2.8 Billion: Is 6.7% Comp Growth Sustainable?

Ulta Beauty, Inc. ULTA delivered a solid second quarter of fiscal 2025, posting $2.8 billion in net sales. The highlight was a 6.7% gain in comparable sales, reflecting how well the retailer is still connecting with shoppers despite a more cautious spending environment. 

The company attributed the comparable sales gain to a 3.7% increase in transactions and a 2.9% rise in the average ticket. Both stores and digital channels were drivers, with e-commerce sales growing at a healthy low double-digit pace. 

Category performance was broad-based, with double-digit gains in fragrance noted as a standout. On the earnings call, management also highlighted that the pace of promotions had an impact on the quarter, with May and July comparable sales stronger due to the timing of major events.

Members of Ulta Beauty’s loyalty program, which totals 45.8 million (per the second-quarter earnings release), remain an important driver of sales and repeat purchases. Apart from this, new brands (24 of them launched in the quarter), along with digital features like replenish and save, helped keep customers engaged.

Ulta Beauty envisions fiscal 2025 comparable sales to grow between 2.5% and 3.5%, with the back half of the year likely to be flat to only slightly positive. The guidance signals that the second quarter’s gain of 6.7% was a high point rather than a new normal. That said, Ulta Beauty’s second-quarter numbers underscore the company’s ability to drive meaningful growth by balancing promotions, introducing new brands and leaning on its loyalty program.

How Other Retailers Stack Up on Sales and Comps

Sally Beauty Holdings, Inc. SBH reported third-quarter fiscal 2025 consolidated net sales of $933.3 million, down 1% year over year. Consolidated comparable sales slipped 0.4%, as broader economic pressures weighed on consumer spending. That softness was partly offset by healthy gains in hair color and digital marketplace sales at SBH, along with ongoing strength at Beauty Systems Group, driven by wider distribution and fresh brand launches. Sally Beauty expects comparable sales to be roughly flat year over year in fiscal 2025. 

Walmart Inc.’s WMT latest quarter (second quarter of fiscal 2026) showed total revenue growth of 4.8% and Walmart U.S. comparable sales growth of 4.6% (excluding fuel). During the quarter, global e-commerce rose around 25%. Walmart highlighted omnichannel momentum and price rollbacks as key sales drivers. For fiscal 2026, WMT now expects consolidated net sales growth of 3.75-4.75% (at constant currency).

Target Corporation TGT reported second-quarter fiscal 2025 revenues of $25.2 billion. Meanwhile, TGT’s comparable sales decreased 1.9%, reflecting a decline of 3.2% in comparable store sales but an increase of 4.3% in comparable digital sales. While results highlighted ongoing headwinds in consumer demand and operational pressures, Target delivered sequential improvements, aided by stronger store traffic and continued digital momentum. For fiscal 2025, the company expects a low-single-digit decline in sales. 

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