Ulta Beauty Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.27%.
Did ULTA Beat Earnings? Q1 2026 Results
Ulta Beauty delivered a stronger-than-expected first quarter for fiscal 2025, with earnings per share of $6.70 beating the $5.80 consensus estimate by 15.50% and net sales climbing 4.5% year-over-year to $2.85 billion, ahead of the $2.79 billion analysts had forecast. The topline beat was underpinned by a 2.9% comparable sales increase, itself driven by a 2.3% rise in average ticket and a 0.6% lift in transactions, suggesting the beauty retailer is coaxing more spending per visit even as broader consumer sentiment remains cautious. A notable reduction in inventory shrink helped cushion gross margin, which held nearly steady at 39.1%, partially offsetting fixed cost deleverage and higher SG&A. The results sent shares sharply higher, with analysts at Oppenheimer and Deutsche Bank raising price targets in response. Management lifted full-year guidance, narrowing net sales to a range of $11.50 billion to $11.70 billion and raising diluted EPS guidance to $22.65 to $23.20, even as CEO Kecia Steelman acknowledged ongoing uncertainty around evolving consumer demand.
- Comparable sales increase of 2.9% driven by 2.3% increase in average ticket and 0.6% increase in transactions
- New store contribution to revenue growth
- Skincare and wellness category grew to 25% of sales from 23% year-over-year
- Fragrance grew to 11% of sales from 10% year-over-year
- Lower inventory shrink partially offset gross margin pressures
- Leverage of corporate overhead partially offset SG&A deleverage
“Fiscal 2025 is off to an encouraging start with stronger-than-expected performance. Our Ulta Beauty Unleashed plan is resonating with guests, energizing our team, and fueling growth.”
Ulta Beauty CEO, on the earnings call
Forward Guidance & Outlook
Ulta Beauty updated its fiscal 2025 guidance: net sales of $11.5 billion to $11.7 billion (from $11.5 billion to $11.6 billion), comparable sales growth of 0% to 1.5% (from 0% to 1%), approximately 60 net new stores (no change), 40-45 remodel and relocation projects (no change), operating margin of 11.7% to 11.8% (no change), diluted EPS of $22.65 to $23.20 (from $22.50 to $22.90), share repurchases of approximately $900 million (no change), interest income of approximately $6 million (no change), effective tax rate of approximately 24.5% (no change), capital expenditures of $425 million to $500 million (no change), and depreciation and amortization expense of $290 million to $300 million (no change). Management noted the operating environment remains fluid with uncertainty around evolving consumer demand.
ULTA YoY Financials
Figures from SEC filings and company reports. Not investment advice.