Ulta Beauty, Inc. stock research
FY2025 Q2
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Aug 2, 2025
Revenue and gross profit were both higher relative to the same quarter one year earlier, while cost of revenue also increased. Gross margin improved versus both the immediately preceding quarter and the year-ago quarter, reflecting a favorable relationship among the three metrics.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2025 Q2
Revenue and gross profit were both higher relative to the same quarter one year earlier, while cost of revenue also increased. Gross margin improved versus both the immediately preceding quarter and the year-ago quarter, reflecting a favorable relationship among the three metrics.
- The strongest observable driver is the gross margin improvement compared to the prior quarter and the year-ago period, supported by a stable relationship between revenue and cost of revenue. No additional causal factors are available in the supplied data.
- Compared to the immediately preceding quarter, revenue and gross profit were stable while gross margin strengthened slightly. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.2%
Gross profit
$1.1B
Revenue
$2.8B
Cost of revenue
$1.7B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Nov 2, 2024 | $2.5B | $1.0B | $1.5B | 39.7% |
| Feb 1, 2025 | $3.5B | $1.3B | $2.2B | 38.2% |
| May 3, 2025 | $2.8B | $1.1B | $1.7B | 39.1% |
| Aug 2, 2025 | $2.8B | $1.1B | $1.7B | 39.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2025
+0.0 pts
Year-over-year change
Aug 3, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the gross margin improvement compared to the prior quarter and the year-ago period, supported by a stable relationship between revenue and cost of revenue. No additional causal factors are available in the supplied data.
Compared to the immediately preceding quarter, revenue and gross profit were stable while gross margin strengthened slightly. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher.
Monitor the trend in cost of revenue relative to revenue, as any divergence could affect gross margin stability.