Ulta Beauty Posts 8.9% Sales Jump, Raises Full-Year Guidance

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8.28.2026

Quick Facts

Q2 net sales rose 8.9% to $3.04 billion, beating the analyst estimate of $2.98 billion, with diluted EPS of $6.55 versus the $6.17 consensus.
Ulta raised its full-year fiscal 2026 net sales growth outlook to 6.7%-7.2%, up from its prior range of 6%-7%.
Fragrance delivered high-teens comparable sales growth and grew its share of total revenue from 11% to 12%.

Ulta Beauty beat Wall Street expectations in its fiscal second quarter and raised its full-year outlook, citing strength in fragrance, K-beauty, and new store openings. The company reported net sales of $3.04 billion for the quarter ended in August 2026, up 8.9% from $2.79 billion in the same period last year.

Comparable sales grew 3.8%, down from 6.7% in the prior-year quarter. Adjusted diluted earnings per share came in at $6.55, up 13.3% year over year and $0.38 above analyst consensus. Operating income grew 10.1%.

CEO Kecia Steelman credited disciplined execution. ‘Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests,’ she said.

Fragrance was the standout category, posting high-teens comparable sales growth and climbing from 11% to 12% of total revenue. CFO Chris DelOrefice said the company is ‘playing to win’ in its bid to become the number one fragrance destination. Haircare also performed well. Makeup was roughly flat, and skincare and wellness posted modest declines.

E-commerce sales grew in the high teens for the sixth straight quarter. The loyalty program reached approximately 47 million active members, a 3% increase, with higher average spending per member.

For the full fiscal year, Ulta now expects net sales growth of 6.7% to 7.2%, up from its prior guidance of 6% to 7%. Comparable sales growth guidance moved to 3.2%-3.7% from 2.5%-3.5%. The company projects operating profit growth of 8.3% to 9.3% and diluted EPS of $28.70 to $29, representing annual EPS growth of 11.9% to 13.1%.

For the second half of fiscal 2026, Ulta expects net sales growth of 4% to 5% and comparable sales growth of 2% to 3%.

Ulta also increased its stock repurchase authorization for fiscal 2026 to $1.8 billion from $1.5 billion and expects to exhaust the remaining $1.0 billion under its current program by year-end. In the first six months of the year, the company repurchased 1.4 million shares at a cost of $791.1 million and invested $139.5 million in capital expenditures.

International expansion continued to gain ground. Ulta completed its acquisition of Space NK, the U.K.-based specialty beauty retailer, in July 2025. Space NK now operates 84 stores in the United Kingdom and two in Ireland as a standalone subsidiary. In Mexico, Ulta opened two new stores including a flagship in Mexico City’s Madero district. Franchise partner Alshaya opened a third Middle East location at the Dubai Mall.

Steelman called international expansion ‘an integral part of our Ulta Beauty Unleashed plan.’ With $12.96 billion in revenue over the trailing 12 months, Ulta sits firmly in mid-sized specialty retail territory with room to grow its international footprint.

Despite the beat, Ulta shares fell 3.4% in after-hours trading. The stock trades at a price-to-earnings ratio of roughly 20 with a return on equity of 47%. Of 25 analysts covering the company, 17 rate it a strong buy, six say hold, and one rates it a strong sell.