THE WHAT? Ulta Beauty reported strong first-quarter fiscal 2026 results, driven by growth across all major beauty categories and channels, while raising its full-year earnings outlook.
THE DETAILS Net sales increased 11.1% year-on-year to US$3.16 billion, while comparable sales rose 5.3%, supported by a 3.7% increase in average transaction value and a 1.6% rise in transactions. Operating income grew 11.6% to US$448.3 million, and diluted earnings per share increased 15.5% to US$7.74. Growth was driven by broad-based demand across cosmetics, fragrance, skincare, haircare and wellness categories, alongside contributions from new store openings and the acquisition of Space NK. During the quarter, Ulta invested in inventory to support new brand launches and strategic category growth, while also returning US$555 million to shareholders through share repurchases. Following the strong performance, the retailer increased its fiscal 2026 earnings guidance to a range of US$28.36 to US$28.80 per share.
THE WHY? The results highlight continued resilience in beauty spending despite broader economic uncertainty and demonstrate Ulta Beauty’s ability to drive growth through product innovation, new brand introductions, store expansion and its omnichannel retail strategy.
Source: Ulta Beauty
