BOLINGBROOK, Illinois, June 2, 2026, 16:12 (CDT)
Ulta Beauty lifted its full-year profit target Tuesday after posting stronger-than-expected quarterly results, as spending picked up on fragrance, skin care and more expensive beauty items. Shares jumped roughly 7% after hours.
Ulta’s first-quarter same-store sales rose 5.3%, beating the 4.5% lift analysts expected, LSEG data cited by Reuters showed. Reuters Investors had been watching beauty, usually a steadier spot in discretionary retail, for any sign shoppers were cutting back or trading down. The report matters on that score.
The release followed Jim Cramer’s comments on an Ulta price-target cut by an analyst, which he called “jarring” before earnings. That was one signal of caution ahead of the report. The stock was already negative for the year going into the results. Insider Monkey
Ulta Beauty reported net sales up 11.1% to $3.16 billion for the 13 weeks ended May 2, from $2.85 billion the year before. Net income came in at $340.5 million, or $7.74 a diluted share, compared with $305.1 million, or $6.70 a share.
Ulta Beauty CEO Kecia Steelman said in the company release, “Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories.” Steelman added these results point to the strength of Ulta’s model in what she called an “uncertain macroeconomic landscape.” Ulta Beauty
Ulta raised its full-year diluted EPS outlook to $28.36 to $28.80, from the earlier $28.05 to $28.55 view. The company is sticking with its net sales growth target of 6% to 7% and comps growth of 2.5% to 3.5%.
Ulta didn’t just top price targets. The company said comp sales rose as average ticket climbed 3.7% and transactions were up 1.6%, so customers spent more each visit and came in more often. Gross margin came in at 40.1%, up from 39.1%, with Ulta crediting less inventory shrink and a stronger merch margin.
Ulta gained market share in prestige beauty and was flat in mass beauty, Steelman said on the earnings call. Morningstar analyst David Swartz told Reuters the retailer “continues to outperform other beauty retailers, such as department stores,” making the quarter stand out as prestige products are usually sold in department stores while mass beauty runs through drugstores and mass merchants. Reuters Ulta Beauty
Ulta is relying on a wide range of prices and labels like Fenty Beauty, Rare Beauty and Cecred as it works to draw in both younger and higher-earning shoppers. At the end of the quarter, the company had 1,608 stores globally, with 1,521 Ulta Beauty stores in the U.S. and 87 Space NK locations in the U.K. and Ireland.
Ulta is seeing higher costs. Selling, general and administrative expenses climbed 14.6% to $814.7 million, with most of that coming from Space NK. Inventory was up 12.5% to $2.4 billion, as the company stocked new brands and opened more stores. Ulta also flagged in its filing that inflation and macro headwinds could pressure customer spending and profits.
Ulta has some space after the quarter. The company repurchased 958,323 shares for $555 million and said $1.3 billion is still available from its $3 billion buyback plan from October 2024.
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