Ulta Beauty

Ulta prioritizes organic reinvestment into stores, services, supply chain and digital, while returning excess cash through repurchases rather than dividends. It repurchased about $1.0 billion in FY2024 and has a $3.0 billion authorization from October 2024, with $2.2 billion remaining at Q2 FY2025 after accelerated H1 buybacks.

The Space NK deal extends the footprint internationally via a standalone banner and was funded with cash and the revolver; management does not expect it to be material to FY2025 results. Capex guidance of roughly $425–500 million balances new stores, remodels, IT and supply chain.

We view the mix as disciplined, though ongoing buybacks at elevated multiples require continued earnings power and tight inventory stewardship.