Ulta Beauty, Inc. ULTA ended fiscal 2025 on a strong sales note, and fragrance emerged as one of the clearest bright spots in the fourth quarter. The category was the strongest performer in the period, underscoring its importance to ULTA’s holiday momentum and reinforcing its place as a meaningful growth driver within the business.
Ulta Beauty delivered fourth-quarter comparable sales growth of 5.8%, backed by a 4.2% increase in average ticket and a 1.6% rise in transactions. Fragrance outpaced the rest of the assortment with double-digit comparable growth, supported by a combination of established names like YSL and Prada, exclusive brands such as NOYZ, Snif and Summer Mink by Drake and solid demand for holiday gift sets.
Apart from product demand, better in-stock levels, expanded space in stores and co-branded TV campaigns helped keep the category highly visible during the holiday season. This suggests the performance came from a mix of newness, merchandising support and gifting appeal.
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What also stands out is that fragrance stayed strong without dramatically reshaping Ulta Beauty’s sales mix. The category accounted for 17% of fourth-quarter net sales, unchanged from the prior-year period. For the full year, fragrance represented 13% of net sales, also flat year over year. In other words, the category delivered standout growth while remaining a steady and established part of the overall business.
Fragrance clearly remained a hot category for Ulta Beauty in the fourth quarter. Strong consumer demand, successful holiday gifting, exclusive launches and improved in-stock levels helped drive standout growth, while the category’s stable sales mix showed that this strength came from an already meaningful part of the business. This keeps fragrance firmly in focus as an important category for Ulta Beauty going forward.
Shares of this Zacks Rank #3 (Hold) company have rallied 47.1% over the past year, outperforming the industry’s growth of 20.6%.
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This article originally published on Zacks Investment Research (zacks.com).