Ulta Beauty sales top estimates, earnings miss; mindful of ‘global uncertainty’
Ulta Beauty reported better-than-expected sales for its fourth quarter even as its profit fell.
The beauty giant cautioned that it expects sales growth to slow this year as consumers continue to focus on value and become more selective. On the earnings call, Ulta president and CEO Kecia Steelman said that consumers remained resilient during 2025 and showed a strong focus on value and affordability, and “increasing discernment” in spending decisions.
“We expect these themes to continue into fiscal 2026, though we are increasingly mindful of rising global conflicts that could impact economic conditions,” she told analysts. “We are optimistic about the opportunities ahead while remaining cautious as we navigate an environment with ongoing global uncertainty and potential economic volatility.”
Steelman also told analysts that the company is launching Ulta Beauty Inc. on TikTok Shop.
Supply Chain
During 2026, Ulta plans to continue its supply chain transformation efforts with the rollout of increased automation in existing facilities and start-up construction of a new regional distribution center in the Northwest later in the year. The new facility will expand network capacity and increase fulfillment speed.
“We plan to invest in systems and processes to drive sales and inventory through new merchandising transformation efforts,” Steelman said on the call.
Fourth Quarter
Ulta's net income totaled $356.67, or diluted earnings per share of $8.01, for the quarter ended Jan. 31, compared to net income of $393.27, or earnings per share of $8.46 million in the year-ago period. Analysts had expected earnings per share of $8.03.
Net sales increased 11.8% to $3.90 billion, ahead of estimates for $3.80 billion. Ulta attributed the increase primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores.
Comparable sales increased 5.8%, driven by a 4.2% increase in average ticket and a 1.6% increase in transactions. Fragrance was once again the strongest performing category during the quarter, with double-digit comp growth.
“The Ulta Beauty team closed the year with momentum, delivering strong fourth quarter and full-year sales and continued market share gains,” Steelman said in the earnings statement. “Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies.”
For the full year, Ulta’s net sales increased 9.7% to $12.4 billion, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores. Comparable sales increased 5.4%, driven by a 3.3% increase in average ticket and a 2.0% increase in transactions.
For fiscal 2026, Ulta said it expects net sales growth of 6% to 7% and diluted earnings per share of between $28.05 and $28.55. Same-store sales are expected to grow 2.5% to 3.5%.
Ulta operated 1,505 U.S. stores and 86 company-owned international stores at the end of fiscal 2025.
