Ulta Beauty’s financial performance exceeded expectations in the fourth quarter, driven in part by digital enhancements and the application of artificial intelligence, company executives said Thursday. Net sales increased 11.8% year-over-year, with comparable sales rising 5.8%, according to an earnings release.
The beauty retailer reported growth in both its brick-and-mortar stores and online channels, with low-single-digit growth in stores and mid-teen growth in eCommerce sales. Throughout fiscal 2025, Ulta Beauty gained market share in both the mass and prestige beauty segments, according to a presentation released Thursday alongside the earnings report.
During a Thursday earnings call, Ulta Beauty President and CEO Kecia Steelman highlighted new digital features designed to improve the customer experience. These included the “Replenish & Save” auto-replenishment subscription, offering a 5% discount and free shipping, and a “Wish List” function.
AI played a role in the company’s success through its automated marketing engine, enabling personalized content delivery to customers, Steelman said. “We will build on our progress across our digital platforms with new capabilities and strong guest engagement through personalization, as we leverage greater automation and real-time content to tailor the guest experience and provide even more value to our loyal members,” she stated during the call.
Ulta Beauty as well launched UB Marketplace in mid-October, a curated third-party platform expanding the company’s product offerings to include beauty, wellness, and lifestyle categories. Steelman described the platform as a complementary assortment that doesn’t compete with in-store products, but rather provides customers with additional options.
Looking ahead to fiscal 2026, Ulta Beauty anticipates net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%. Steelman acknowledged ongoing economic uncertainties, noting that consumer behavior throughout 2025 demonstrated a focus on value and affordability, alongside continued engagement with the beauty category.
“We expect these themes to continue into fiscal 2026, though we are increasingly mindful of rising global conflicts that could impact economic conditions,” Steelman said during the call.
Kecia Steelman assumed the role of President and CEO in January 2025, bringing with her a three-decade career in retail, beginning with a 12-year tenure at Target, according to information presented at NRF 2026: Retail’s Big Show in February. Prior to Ulta Beauty, she held positions at Expo Design Centers and Family Dollar.
Ulta Beauty is scheduled to report fiscal 2025 results on March 12, 2026.
