Ulta Beauty Reports 11% Sales Growth as Prestige Beauty Gains Market Share

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6.4.2026

Quick Facts

Ulta Beauty’s Q1 net sales increased 11.1% to $3.2 billion, beating analyst expectations of $3.12 billion
Comparable sales grew 5.3% with diluted earnings per share rising 15.5% to $7.74, above the $6.89 forecast
Company gained market share in prestige beauty despite challenging consumer environment

Ulta Beauty delivered strong first-quarter results, with net sales climbing 11.1% to $3.2 billion and comparable sales growing 5.3%. The beauty retailer beat Wall Street expectations on both revenue and earnings.

Diluted earnings per share jumped 15.5% to $7.74, surpassing analyst forecasts of $6.89. The company exceeded revenue expectations of $3.12 billion.

CEO Kecia Steelman said the results demonstrate the strength of Ulta’s model in an uncertain macroeconomic landscape. The company gained market share in prestige beauty during the quarter, even as consumers face economic pressure.

Fragrance remained Ulta’s strongest category, delivering high-teen comparable growth and increasing from 11% to 12% of total revenue. Makeup comparable sales growth was driven primarily by prestige brands, while mass makeup remained relatively flat.

E-commerce grew in the mid-teens during the quarter. Ulta launched on TikTok Shop with a focus on Ulta-specific products. The company opened 16 net new Ulta Beauty stores and one Space NK location, ending the quarter with 1,521 U.S. stores and 87 international stores.

Lower shrink boosted gross margin by 100 basis points to 40.1%, prompting Ulta to raise its full-year earnings guidance. The company now expects earnings per share between $28.36 and $28.80, up from its previous outlook of $28.05 to $28.55.

Ulta announced plans for a flagship store in Times Square, New York, expected to open in late 2027. Steelman described it as a highly experiential location where technology, entertainment and convenience come together for immersive guest experiences.

The Times Square store represents a strategic push into New York City, where Ulta has just three Manhattan locations compared to Sephora’s dozen-plus stores. The move follows Ulta’s 2025 acquisition of British retailer Space NK, which established a U.K. foothold.

According to Circana, U.S. prestige beauty revenue grew 9% in the first quarter compared to 2% growth for mass-market beauty. Larissa Jensen, Global Beauty Industry Advisor at Circana, noted the industry’s unprecedented double-digit growth but expects performance to eventually soften.