Ulta doubled store fulfillment capabilities in 2025

Core Insights - Ulta Beauty has doubled the number of U.S. stores participating in its ship-from-store program, increasing from approximately 500 stores at the end of fiscal year 2024 to over 1,000 stores in fiscal year 2025 [2]. Group 1: E-commerce Fulfillment Expansion - The implementation of an AI-powered order management system has optimized fulfillment processes, enabling Ulta to expand its ship-from-store capabilities [3]. - The company has maintained the same number of regional distribution centers and fulfillment centers from 2024 to 2025, while constructing a new distribution center in the Northwest to enhance network capacity and fulfillment speed [4]. Group 2: Financial Performance - Ulta reported a 11.8% year-over-year increase in fourth quarter net sales, reaching $3.9 billion, and a 9.7% increase in full fiscal year 2025 net sales to $12.4 billion [6]. - The company anticipates net sales growth of 6% to 7% for fiscal year 2026, with projected comparable sales growth of 2.5% to 3.5% [6]. Group 3: Industry Trends - Other retailers, such as Walmart and Target, are also focusing on store fulfillment, with Walmart reporting a 50% year-over-year growth in store-fulfilled delivery in Q4, and Target leveraging stores as fulfillment hubs for over 97% of its total merchandise sales in the past three years [5].