Ulta Beauty Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.63%.
Did ULTA Beat Earnings? Q2 2026 Results
Ulta Beauty posted a standout second quarter of fiscal 2025, with diluted EPS of $5.78 clearing the $5.04 consensus estimate by 14.61% and net sales of $2.79 billion topping expectations by 4.25% as revenue climbed 9.3% year over year. The primary engine behind the beat was a meaningful acceleration in comparable sales, which grew 6.7%, driven by a 3.7% rise in transactions and a 2.9% lift in average ticket, a sharp reversal from the prior year's 1.2% decline. Gross margin expanded 90 basis points to 39.2%, aided by lower inventory shrink and stronger merchandise margin, while the July 2025 acquisition of Space NK added both revenue and international scale. The quarter also drew attention from analysts who raised price targets ahead of results, citing Ulta's "Beauty Unleashed" growth strategy. With <a href="https://247wallst.com/investing/2025/08/06/live-e-l-f-beauty-reports-earnings-today-will-it-issue-a-big-beat/">broader beauty sector momentum</a> in focus, management raised its fiscal 2025 net sales outlook to $12.00 billion to $12.10 billion and lifted diluted EPS guidance to $23.85 to $24.30, though CEO Kecia Steelman flagged caution around second-half consumer demand.
- 6.7% comparable sales growth driven by 3.7% increase in transactions and 2.9% increase in average ticket
- Growth across all major product categories
- Lower inventory shrink improving gross margin
- Higher merchandise margin
- Market share growth
- 24 new store openings during the quarter
- Acquisition of Space NK completed July 10, 2025
“The Ulta Beauty team delivered strong results in the second quarter, including 6.7% comparable sales growth. Outstanding top line performance, fueled by growth across all major categories, drove market share growth and better-than-expected profitability.”
Ulta Beauty CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025, Ulta Beauty updated its outlook: net sales of $12.0 billion to $12.1 billion (up from prior $11.5 billion to $11.7 billion); comparable sales growth of 2.5% to 3.5% (up from 0% to 1.5%); approximately 63 net new stores (up from ~60); 43-48 remodel and relocation projects (up from 40-45); operating margin of 11.9% to 12.0% (narrowed from 11.7% to 11.8%); diluted EPS of $23.85 to $24.30 (up from $22.65 to $23.20); share repurchases of approximately $900 million (no change); capital expenditures of $425 million to $500 million (no change); depreciation and amortization of approximately $300 million. The company expects approximately $4 million of interest expense (previously ~$6 million of interest income). Management expressed caution around how consumer demand may evolve in the second half of the year.
ULTA YoY Financials
Figures from SEC filings and company reports. Not investment advice.