Inventory Turnover › Ulta Beauty
Ulta Beauty Inventory Turnover: Specialty Beauty Case Study
Ulta Beauty, Inc. (ULTA) turned its inventory 3.6x in fiscal 2025 (52 weeks ended January 31, 2026), a typical velocity for a large specialty-beauty retailer. The ratio has eased from a cycle peak of 4.1x in fiscal 2023 as store growth, a wider assortment and the Space NK acquisition all added stock. That drift is a growth story, not a warning. All numbers from the company 10-K filings on SEC EDGAR.
Quick answer: Ulta Beauty's fiscal 2025 and 2024 10-K inventory turnover ratio
Fiscal 2025 (10-K)
3.6x for the 52 weeks ended January 31, 2026. $7,547.6M cost of sales over roughly $2,074.65M average inventory ($1,968.2M opening, $2,181.1M closing).
Fiscal 2024 (10-K)
3.7x for the 52 weeks ended February 1, 2025. $6,908.4M cost of sales over roughly $1,855.15M average inventory.
Turnover = cost of sales / average inventory (mean of opening and closing balance-sheet merchandise inventory). Figures taken from Ulta Beauty's 10-K filings on SEC EDGAR (CIK 0001403568), verified 28 August 2026.
Fiscal 2022 - fiscal 2025 turnover history
| Fiscal Year | Cost of Sales | Inv (start) | Inv (end) | Turnover |
|---|---|---|---|---|
| Fiscal 2022 (ended Jan 28 2023) | $6,164.1M | $1,499.2M | $1,603.5M | 4.0x |
| Fiscal 2023 (ended Feb 3 2024) | $6,826.2M | $1,603.5M | $1,742.1M | 4.1x |
| Fiscal 2024 (ended Feb 1 2025) | $6,908.4M | $1,742.1M | $1,968.2M | 3.7x |
| Fiscal 2025 (ended Jan 31 2026) | $7,547.6M | $1,968.2M | $2,181.1M | 3.6x |
Inventory (start) equals the prior year's inventory (end); small differences to a strict average reflect rounding of the balance-sheet figures. Fiscal 2023 was a 53-week year on Ulta's retail calendar, which lifts that year's cost of sales and turnover slightly.
4.0x · Post-pandemic beauty demand ran hot; comparable sales climbed and inventory stayed lean relative to cost of sales.
4.1x · The peak year. A 53-week fiscal calendar and strong sell-through pushed turnover to its high of the cycle.
3.7x · Inventory grew faster than cost of sales as assortment widened and comparable-sales growth slowed to low single digits.
3.6x · Net sales rose 9.7% to $12.4B, but the Space NK acquisition and 60 net new US stores added stock, easing turnover to 3.6x.
Why a falling ratio is a growth signal here
On most retailers, three years of easing turnover would flag a demand or forecasting problem. At Ulta it reflects deliberate expansion. Cost of sales grew every year (from $6.16B to $7.55B), but merchandise inventory grew a little faster, so the ratio eased from 4.1x to 3.6x.
The extra inventory is buying growth. In fiscal 2025 Ulta opened 60 net new US stores (ending the year at 1,505), acquired Space NK to add prestige beauty across the UK and Ireland, and kept broadening its wellness and prestige assortment. New stores and a bigger catalogue both hold stock before it sells, and an acquired international fleet arrives with its own inventory on the balance sheet. A retailer adding formats and geography while comparable sales still rise is investing, not losing control of its supply chain.
What keeps a beauty retailer near 3.6x
1. A very high SKU count
An Ulta store carries roughly 25,000 products spanning mass and prestige brands, with deep ranges of shades, formulas and sizes. Assortment breadth is the whole proposition, so a large share of the shelf exists to complete the range rather than to sell fast. High SKU counts structurally hold more inventory per dollar of sales than a narrow-assortment format.
2. Discretionary, discovery-led demand
Beauty is bought on discovery and occasion, not on a fixed replenishment cycle like groceries or medication. Testers, gift sets and newness drive the trip, which means holding seasonal and launch inventory ahead of demand that is harder to forecast than a staple. That trade of velocity for assortment is intrinsic to specialty beauty.
3. Cost of sales includes occupancy
Ulta's reported cost of sales bundles merchandise cost with warehousing, distribution and store occupancy. That makes its turnover a cost-of-sales ratio rather than a pure merchandise-velocity number, and it is the consistent basis used across these case studies. On a merchandise-only basis the true product velocity would be somewhat lower still.
Where 3.6x sits among retailers
Ulta's 3.6x anchors the specialty-beauty end of the benchmark ladder. It turns faster than furniture and jewelry chains, which hold big-ticket stock for months, but far slower than warehouse clubs and grocers that cycle staples in weeks: Costco turns around 13x and Kroger around 16x. That gap is about format, not management. A club store stocks a few thousand fast-moving SKUs in bulk; a beauty specialist stocks tens of thousands of discretionary ones.
For benchmarking, a beauty or cosmetics retailer should compare itself to Ulta's specialty economics, not to a grocer's. See the beauty and cosmetics sector page for the full sector range, and the turnover benchmarks hub for all 13 verticals and the self-benchmark calculator.
Frequently asked questions
What is Ulta Beauty's inventory turnover ratio in fiscal 2025?
Ulta Beauty turned its inventory 3.6x in fiscal 2025, the 52 weeks ended January 31, 2026. That is $7,547.6M of cost of sales divided by roughly $2,074.65M average merchandise inventory (the mean of the $1,968.2M opening and $2,181.1M closing balances) from its 10-K. It is a typical figure for a large specialty-beauty retailer, well below fast-cycling grocery or drug formats but ahead of most furniture or jewelry chains.
Why has Ulta Beauty's inventory turnover been falling?
Turnover eased from 4.1x in fiscal 2023 to 3.6x in fiscal 2025, not because the business weakened but because inventory grew faster than cost of sales. Ulta added 60 net new US stores in fiscal 2025, acquired Space NK (84 stores in the UK plus 2 in Ireland), and broadened its prestige and wellness assortment. Each of those adds stock that has to be positioned before it sells, and a wider assortment structurally holds more inventory per dollar of sales.
How is Ulta Beauty's inventory turnover calculated from the 10-K?
Divide cost of sales by average inventory, where average inventory is the mean of the opening and closing merchandise-inventory balances for the fiscal year. Both figures come from Ulta's 10-K on SEC EDGAR (CIK 0001403568). Ulta's cost of sales includes merchandise costs plus warehousing, distribution and store occupancy, so the ratio is on a cost-of-sales basis rather than pure merchandise cost. For fiscal 2025: $7,547.6M / (($1,968.2M + $2,181.1M) / 2) = 3.6x.
Why does a beauty retailer turn inventory slower than grocery or drugstores?
Beauty is a high-SKU, discretionary category. A single Ulta store carries roughly 25,000 products across mass and prestige brands, with deep shade and variant ranges, testers, and seasonal gift sets that all need to sit on the shelf to complete the assortment. Grocery and drugstore formats cycle staples and consumables that customers rebuy on a predictable schedule, so they turn far faster. A beauty retailer trades some velocity for the assortment breadth and in-store discovery that define the category.