Ulta Beauty reports USD 3.2M sales in Q1 FY26

USA – Ulta Beauty reported strong first-quarter fiscal 2026 results for the 13 weeks ended May 2, 2026, with net sales rising 11.1% year over year to USD 3,163.9 million from USD 2,848.4 million.

The performance was driven by a 5.3% increase in comparable sales (up from 2.9% in the prior year), the acquisition of Space NK, and sales from 70 net new Ulta Beauty stores opened since May 3, 2025.

Comparable sales growth was fueled by a 3.7% increase in average ticket and a 1.6% rise in transactions. 

Gross profit increased 13.8% to USD 1,267.6 million, with gross margin expanding to 40.1% of net sales from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. 

CEO Kecia Steelman stated, “Fiscal 2026 is off to a strong start, driven by broad-based growth across all channels and major categories.”

“Looking ahead, we remain focused on delivering long-term shareholder value through our strategic growth initiatives, continued prudent cost management, and our differentiated guest experience.”

Selling, general, and administrative (SG&A) expenses rose 14.6% to USD 814.7 million, mainly due to the Space NK acquisition, resulting in SG&A as a percentage of net sales increasing to 25.8% from 24.9%. 

Operating income grew 11.6% to USD 448.3 million, or 14.2% of net sales (up from 14.1%), and diluted earnings per share (EPS) increased 15.5% to USD 7.74 from USD 6.70.

On the balance sheet, cash and cash equivalents totalled USD 166.3 million at quarter-end, with short-term investments of USD 55.0 million and short-term debt of USD 144.9 million. 

Merchandise inventories, net, increased 12.5% to USD 2,386.4 million, reflecting inventory for new brand launches, the Space NK acquisition, strategic category investments, and store expansion. 

Capital expenditures totalled USD 58.3 million, primarily for new and existing stores.

The company returned USD 555.0 million to shareholders through the repurchase of 958,323 shares, with USD 1.3 billion remaining available under its USD 3.0 billion share repurchase program announced in October 2024. 

As of May 2, 2026, Ulta Beauty operated 1,521 stores in the United States and 87 company-operated international stores (via Space NK in the U.K. and Ireland).

Ulta Beauty updated its fiscal 2026 guidance while keeping net sales growth (6% to 7%) and comparable sales growth (2.5% to 3.5%) unchanged. 

Operating income growth guidance was tightened slightly to 6.5% to 9% from 6% to 9%, and diluted EPS guidance was raised to USD 28.36 to USD 28.80 from USD 28.05 to USD 28.55. 

Capital expenditures guidance remains USD 400 million to USD 450 million for the full year. 

Fragrance was the strongest category at 12% of net sales (up from 11%), while cosmetics remained at 40%, skincare and wellness at 24% (down from 25%), and haircare at 18%.

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