Ulta vs. Sephora: Who’s Winning the Beauty Retail Battle

Financial Performance Ulta Beauty posted a 2.9% year-over-year increase in comparable sales for Q1 2025, reflecting modest but positive growth despite ongoing challenges in its core makeup category and inventory management.

Sephora, part of LVMH’s selective retailing division, continued to see growth in Q1 2025, even as LVMH’s overall perfumes and cosmetics sales dropped by 1% year over year. Sephora’s strong brick-and-mortar results and exclusive launches offset some of the segment’s broader weakness, though the U.S.

market was pressured by Amazon’s pricing strategies and economic uncertainty. Metric Ulta Beauty Sephora (LVMH) Net Sales Q1 2025 $2.8 billion (Ulta IR) N/A at brand level; LVMH Perfumes & Cosmetics: €2.18 billion, down 1% (LVMH official) Comparable Sales Growth Q1 +2.9% (GuruFocus) Positive, exact % not disclosed U.S.

Performance Solid, modest growth Growth but momentum slowed due to Amazon competition Notable Strengths Promotions, haircare, mass/prestige mix Luxury/premium, exclusives, global store expansion Category and Strategic Performance Ulta Beauty led growth in mass, prestige, bath, and body categories during major Spring 2025 events, supported by strong…