Ulta Beauty to open Times Square flagship; Q1 sales, earnings beat Street
Ulta Beauty raised its full-year earnings outlook on the heels of a strong first quarter with earnings and revenue ahead of expectations amid growth across all its channels and major categories.
On the earnings call, Ulta revealed plans to open a “highly experiential” flagship in New York City’s Times Square. The store, which the retailer says underscores its commitment to immersive retail and accelerated brand building, is expected to open in late 2027. (The company currently has two locations in Manhattan.)
“The store will be a vibrant, dynamic destination where technology, entertainment, convenience and our differentiated assortment come together to deliver immersive guest experiences and brand activations,” Ulta president and CEO Kecia Steelman told analysts on the call. “The store will showcase next level brand building and storytelling capabilities, unlock high-impact marketing through digital billboards and drive greater awareness and loyalty with guests from all over the United States and the world.”
Ulta reported net income of $340.4 million for the quarter ended May 2, compared to $305 million in the year-ago period. Earnings per share increased 15.5% to $7.74, far ahead of analysts’ expectations of $6.89 per share. Operating income rose 11.6% to $448.2 million.
First-quarter net sales increased 11.1% to $3.16 billion, primarily due to increased comparable sales, the acquisition of Space NK and sales from new stores. Analysts had expected sales of $3.10 billion.
Comparable sales increased 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions.The strongest category for the quarter was fragrances, increasing from 11% to 12% of total revenue. On the earnings call, Ulta said the launch of Ulta’s TikTok Shop, with a focus on Ulta-specific products, during the quarter contributed to its success.
“Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories,” Steelman stated in the earnings release. “Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape. Looking ahead, we remain focused on delivering long-term shareholder value through our strategic growth initiatives, continued prudent cost management, and our differentiated guest experience.”
Ulta reaffirmed its full-year same-store sales and revenue projections. The company raised its full-year earnings per share guidance to between $28.36 and $28.80, up from its previous outlook of between $28.05 and $28.55.
Ulta ended the quarter with 1,521 U.S. stores and 87 company-operated international stores.
