Bolingbrook, Illinois, March 12, 2026, 17:30 CDT.
Ulta Beauty stock slid over 8% after hours Thursday. The retailer’s full-year profit outlook landed below what analysts had penciled in, overshadowing a solid holiday-period performance. For fiscal 2026, Ulta put earnings per share between $28.05 and $28.55.
Ulta’s updated outlook comes at a tricky moment. The company has ramped up spending on marketing and poured money into strategic moves, including the Space NK acquisition, all in hopes of fueling longer-term expansion. But now, it’s guiding to comparable sales growth between 2.5% and 3.5%—a step down from the 5.4% comp it delivered for fiscal 2025.
Chief Executive Kecia Steelman told analysts customers are sticking with “a strong focus on value and affordability,” though beauty engagement is holding up. Steelman said Ulta is looking for beauty-category growth in the 2% to 4% range this year, assuming no major macro shake-up. The Motley Fool
Ulta posted net sales of $3.90 billion for the fourth quarter ended Jan. 31, up 11.8%. Driving that: comparable sales gained 5.8%, and the company pointed to its Space NK buy and store openings as tailwinds. Diluted EPS landed at $8.01.
The story was different for profitability. Ulta Beauty reported its operating margin slid to 12.2%, down from 14.8% a year ago. The culprit: selling and administrative costs soared 23% to a little over $1 billion, driven by bigger ad budgets, incentive compensation, and other strategic moves, the company said.
Ulta’s outlook for fiscal 2026 calls for net sales to climb 6% to 7%, with comparable sales expected to rise 2.5% to 3.5%. Operating income is seen growing 6% to 9%, and the company is planning $400 million to $450 million in capital expenditures. Sales guidance stayed intact, but investors reacted to the more muted growth trends underneath—and a less robust earnings projection.
Steelman described Ulta as closing out the year “with momentum.” Finance chief Chris Del Orfus echoed that upbeat note, targeting “consistent, profitable growth” as Ulta looks to translate recent investments into more predictable returns. Management highlighted gains in market share and noted mid-teen growth for e-commerce during the quarter. Ulta Beauty
Ulta keeps battling for market share with Target, Walmart, and Sephora. “Leadership is not in question,” Zacks Investment Research stock strategist Ethan Feller told Reuters, but when growth slows, stocks trading at high valuations tend to get hit harder. Reuters
There’s also a risk factor to consider. Morningstar’s David Swartz called higher pay and expansion spending a “small concern,” while Steelman said Ulta won’t ramp up promotions but remains “increasingly mindful” of global conflicts and other unpredictable shocks. If consumers tighten their belts more, margin pressures could stick around longer than Ulta anticipates. Reuters
