- Net sales increased 8.9%
- Comparable sales increased 3.8%
- Operating income increased 10.1%
- Diluted EPS increased 13.3% to $6.55
- Stock repurchase plan for fiscal 2026 increased to $1.8 billion from $1.5 billion
BOLINGBROOK, Ill. -- (Business Wire)
Ulta Beauty, Inc. (NASDAQ: ULTA) today announced consolidated financial results for the thirteen-week period (“second quarter”) ended August 1, 2026, compared to the same period ended August 2, 2025.
|
|
|
|
|
|
|
|
| 13 Weeks Ended |
|
| August 1, |
| August 2, |
(Dollars in millions, except per share data) | | 2026 |
| 2025 |
Net sales
|
|
$
|
3,035.7
|
|
$
|
2,788.5
|
Comparable sales
|
|
|
3.8%
|
|
|
6.7%
|
Gross profit (as a percentage of net sales)
|
|
|
39.1%
|
|
|
39.2%
|
Selling, general and administrative expenses
|
|
$
|
802.8
|
|
$
|
741.7
|
Operating income growth
|
|
|
10.1%
|
|
|
4.8%
|
Diluted earnings per share
|
|
$
|
6.55
|
|
$
|
5.78
|
“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,” said Kecia Steelman, president and chief executive officer. “We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience.”
Steelman continued, “With our strong first-half performance, we have raised our financial guidance for the year, reflecting our confidence in our strategic priorities and our ability to drive profitable growth and long-term value for all stakeholders in a dynamic environment."
Second Quarter of Fiscal 2026 Compared to Second Quarter of Fiscal 2025
-
Net sales increased 8.9% to $3.0 billion, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores.
-
Comparable sales increased 3.8%.
-
Gross profit increased 8.7% to $1.2 billion. As a percentage of net sales, gross profit decreased to 39.1% compared to 39.2%, primarily due to the impact of the Space NK business mix.
-
Selling, general and administrative (SG&A) expenses increased 8.2% to $802.8 million, primarily due to the acquisition of Space NK. As a percentage of net sales, SG&A expenses decreased to 26.4% compared to 26.6%.
-
Operating income increased 10.1% to $379.6 million. As a percentage of net sales, operating income was 12.5% compared to 12.4%.
-
Diluted earnings per share increased 13.3% to $6.55.
Balance Sheet and Capital Deployment
Cash and cash equivalents at the end of the second quarter of fiscal 2026 were $158.5 million. Short-term investments at the end of the second quarter of fiscal 2026 were $55.0 million. Short-term debt at the end of the second quarter of fiscal 2026 was $339.6 million, primarily to support working capital needs and ongoing capital allocation priorities, including share repurchases.
Merchandise inventories, net at the end of the second quarter of fiscal 2026 were $2.4 billion, remaining flat compared to the prior year primarily due to improved inventory management, partially offset by inventory to support new brand launches and the addition of new stores.
During the first six months of fiscal 2026, the Company invested $139.5 million in capital expenditures to support new stores, relocations, remodels, and investments in information technology.
Stock repurchases are a core part of the Company’s capital allocation strategy. During the first six months of fiscal 2026, the Company repurchased 1.4 million shares of its common stock at a cost of $791.1 million, excluding excise taxes. As of August 1, 2026, $1.0 billion remained available under the current $3.0 billion share repurchase program announced in October 2024. The Company now expects to utilize the remaining $1.0 billion available under the current share repurchase authorization by the end of fiscal 2026.
Fiscal 2026 Outlook
Based on current estimates, the Company has updated its outlook for fiscal 2026:
|
|
|
|
|
| | Prior Fiscal 2026 Outlook |
| Updated Fiscal 2026 Outlook |
Net sales growth
|
|
6% to 7%
|
|
6.7% to 7.2%
|
Comparable sales growth
|
|
2.5% to 3.5%
|
|
3.2% to 3.7%
|
Operating income growth
|
|
6.5% to 9%
|
|
8.3% to 9.3%
|
Diluted earnings per share
|
|
$28.36 to $28.80
|
|
$28.70 to $29.00
|
Capital expenditures
|
|
$400 million to $450 million
|
|
no change
|
Conference Call Information
A conference call to discuss second quarter of fiscal 2026 results is scheduled for today, August 27, 2026, at 4:30 p.m. Eastern Time / 3:30 p.m. Central Time. During the conference call, a related presentation will be webcast live. Investors and analysts who are interested in participating in the call are invited to register for the live event at https://q2-2026-ulta-beauty-earnings-conference-call.open-exchange.net/.
A copy of the presentation and a replay of the webcast will be available and archived for a limited time on the company's Investor Relations website at https://www.ulta.com/investor.
About Ulta Beauty
Ulta Beauty (NASDAQ: ULTA) is the largest specialty beauty retailer in the U.S. and a leading destination for cosmetics, fragrance, skin care, hair care, wellness, and salon services. Since opening its first store in 1990, Ulta Beauty has grown to more than 1,500 stores across the U.S. and redefined beauty retail by bringing together All Things Beauty. All in One Place®. With an expansive product assortment, professional salon services, and its beloved Ulta Beauty Rewards loyalty program, the company delivers seamless, personalized experiences across stores, Ulta.com, and the Ulta Beauty App – where the possibilities are truly beautiful. Ulta Beauty is also expanding its presence internationally through its subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland, its joint venture in Mexico, and its franchise in the Middle East. For more information, visit www.ulta.com.
Forward‑Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to, among other things, future events and financial performance. These forward-looking statements are included throughout this press release, and relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity, share repurchases, and capital resources and other financial and operating information. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “plans,” “estimates,” “targets,” “strategies,” or other comparable words.
Any forward-looking statements contained in this press release are based upon our historical performance and on current plans, estimates, and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, targets, strategies, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to those described under Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended January 31, 2026, as such risk factors may be updated from time to time in our periodic filings with the U.S. Securities and Exchange Commission (“SEC”), and are accessible on the SEC's website at www.sec.gov.
Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. Except to the extent required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Exhibit 1
|
|
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
| 13 Weeks Ended |
|
| August 1, |
| August 2, |
|
| 2026 |
| 2025 |
|
| (Unaudited) |
| (Unaudited) |
Net sales
|
|
$
|
3,035,676
|
|
100.0%
|
|
$
|
2,788,469
|
|
100.0%
|
Cost of sales
|
|
|
1,848,724
|
|
60.9%
|
|
|
1,696,773
|
|
60.8%
|
Gross profit
|
|
|
1,186,952
|
|
39.1%
|
|
|
1,091,696
|
|
39.2%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
802,784
|
|
26.4%
|
|
|
741,737
|
|
26.6%
|
Pre-opening expenses
|
|
|
4,527
|
|
0.1%
|
|
|
5,105
|
|
0.2%
|
Operating income
|
|
|
379,641
|
|
12.5%
|
|
|
344,854
|
|
12.4%
|
Interest expense (income), net
|
|
|
3,684
|
|
0.1%
|
|
|
(1,413)
|
|
(0.1%)
|
Income before income taxes and equity net loss of affiliate
|
|
|
375,957
|
|
12.4%
|
|
|
346,267
|
|
12.4%
|
Income tax expense
|
|
|
91,878
|
|
3.0%
|
|
|
84,795
|
|
3.0%
|
Income before equity net loss of affiliate
|
|
|
284,079
|
|
9.4%
|
|
|
261,472
|
|
9.4%
|
Equity net loss of affiliate
|
|
|
2,073
|
|
0.1%
|
|
|
597
|
|
0.0%
|
Net income
|
|
$
|
282,006
|
|
9.3%
|
|
$
|
260,875
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
6.57
|
|
|
|
$
|
5.80
|
|
|
Diluted
|
|
$
|
6.55
|
|
|
|
$
|
5.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
42,955
|
|
|
|
|
44,955
|
|
|
Diluted
|
|
|
43,062
|
|
|
|
|
45,112
|
|
|
Exhibit 2
|
|
Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data) |
| | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
| 26 Weeks Ended |
|
| August 1, |
| August 2, |
|
| 2026 |
| 2025 |
|
| (Unaudited) |
|
|
Net sales
|
|
$
|
6,199,533
|
|
100.0%
|
|
$
|
5,636,836
|
|
100.0%
|
Cost of sales
|
|
|
3,744,961
|
|
60.4%
|
|
|
3,430,921
|
|
60.9%
|
Gross profit
|
|
|
2,454,572
|
|
39.6%
|
|
|
2,205,915
|
|
39.1%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
1,617,483
|
|
26.1%
|
|
|
1,452,350
|
|
25.8%
|
Pre-opening expenses
|
|
|
9,192
|
|
0.1%
|
|
|
6,934
|
|
0.1%
|
Operating income
|
|
|
827,897
|
|
13.4%
|
|
|
746,631
|
|
13.2%
|
Interest expense (income), net
|
|
|
3,032
|
|
0.0%
|
|
|
(4,960)
|
|
(0.1%)
|
Income before income taxes and equity net loss of affiliate
|
|
|
824,865
|
|
13.3%
|
|
|
751,591
|
|
13.3%
|
Income tax expense
|
|
|
198,738
|
|
3.2%
|
|
|
184,439
|
|
3.3%
|
Income before equity net loss of affiliate
|
|
|
626,127
|
|
10.1%
|
|
|
567,152
|
|
10.1%
|
Equity net loss of affiliate
|
|
|
3,652
|
|
0.1%
|
|
|
1,225
|
|
0.0%
|
Net income
|
|
$
|
622,475
|
|
10.0%
|
|
$
|
565,927
|
|
10.0%
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
14.35
|
|
|
|
$
|
12.53
|
|
|
Diluted
|
|
$
|
14.31
|
|
|
|
$
|
12.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,368
|
|
|
|
|
45,158
|
|
|
Diluted
|
|
|
43,513
|
|
|
|
|
45,297
|
|
|
Exhibit 3
|
|
Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
| August 1, |
| January 31, |
| August 2, |
|
| 2026 |
| 2026 |
| 2025 |
|
| (Unaudited) |
|
|
|
| (Unaudited) |
Assets |
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
158,451
|
|
$
|
424,243
|
|
$
|
242,745
|
Short-term investments
|
|
|
55,000
|
|
|
70,000
|
|
|
—
|
Receivables, net
|
|
|
249,295
|
|
|
296,217
|
|
|
224,412
|
Merchandise inventories, net
|
|
|
2,406,733
|
|
|
2,181,127
|
|
|
2,407,051
|
Prepaid expenses and other current assets
|
|
|
163,467
|
|
|
169,361
|
|
|
165,963
|
Prepaid income taxes
|
|
|
35,572
|
|
|
3,198
|
|
|
28,877
|
Total current assets
|
|
|
3,068,518
|
|
|
3,144,146
|
|
|
3,069,048
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,414,258
|
|
|
1,434,062
|
|
|
1,332,503
|
Operating lease assets
|
|
|
1,877,965
|
|
|
1,813,074
|
|
|
1,682,151
|
Goodwill
|
|
|
223,146
|
|
|
226,421
|
|
|
392,606
|
Other intangible assets, net
|
|
|
200,200
|
|
|
203,288
|
|
|
5,466
|
Deferred compensation plan assets
|
|
|
56,828
|
|
|
53,391
|
|
|
50,550
|
Other long-term assets
|
|
|
123,035
|
|
|
124,912
|
|
|
98,324
|
Total assets
|
|
$
|
6,963,950
|
|
$
|
6,999,294
|
|
$
|
6,630,648
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
646,200
|
|
$
|
685,887
|
|
$
|
708,655
|
Accrued liabilities
|
|
|
440,435
|
|
|
551,380
|
|
|
460,232
|
Deferred revenue
|
|
|
542,417
|
|
|
582,378
|
|
|
460,187
|
Current operating lease liabilities
|
|
|
312,648
|
|
|
306,671
|
|
|
282,593
|
Accrued income taxes
|
|
|
—
|
|
|
35,739
|
|
|
—
|
Short-term debt
|
|
|
339,578
|
|
|
62,287
|
|
|
289,101
|
Total current liabilities
|
|
|
2,281,278
|
|
|
2,224,342
|
|
|
2,200,768
|
|
|
|
|
|
|
|
|
|
|
Non-current operating lease liabilities
|
|
|
1,871,805
|
|
|
1,813,103
|
|
|
1,716,133
|
Deferred income taxes
|
|
|
99,404
|
|
|
98,766
|
|
|
49,158
|
Other long-term liabilities
|
|
|
67,722
|
|
|
59,632
|
|
|
60,729
|
Total liabilities
|
|
|
4,320,209
|
|
|
4,195,843
|
|
|
4,026,788
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
2,643,741
|
|
|
2,803,451
|
|
|
2,603,860
|
Total liabilities and stockholders’ equity
|
|
$
|
6,963,950
|
|
$
|
6,999,294
|
|
$
|
6,630,648
|
Exhibit 4
|
| | | | | | |
Ulta Beauty, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) |
|
|
|
|
|
|
|
|
| 26 Weeks Ended |
|
| August 1, |
| August 2, |
|
| 2026 |
| 2025 |
|
| (Unaudited) |
| (Unaudited) |
Operating activities |
|
|
|
|
|
|
Net income
|
|
$
|
622,475
|
|
$
|
565,927
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
162,724
|
|
|
143,198
|
Non-cash lease expense
|
|
|
178,326
|
|
|
183,528
|
Deferred income taxes
|
|
|
1,524
|
|
|
2,232
|
Stock-based compensation expense
|
|
|
21,063
|
|
|
20,338
|
Loss on disposal of property and equipment
|
|
|
8,404
|
|
|
4,689
|
Equity net loss of affiliate
|
|
|
3,652
|
|
|
1,225
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
Receivables
|
|
|
47,127
|
|
|
(198)
|
Merchandise inventories
|
|
|
(226,791)
|
|
|
(366,091)
|
Prepaid expenses and other current assets
|
|
|
5,645
|
|
|
(21,657)
|
Income taxes
|
|
|
(68,104)
|
|
|
(70,406)
|
Accounts payable
|
|
|
(47,328)
|
|
|
98,115
|
Accrued liabilities
|
|
|
(120,902)
|
|
|
(3,881)
|
Deferred revenue
|
|
|
(39,821)
|
|
|
(44,418)
|
Operating lease liabilities
|
|
|
(178,756)
|
|
|
(180,316)
|
Other assets and liabilities
|
|
|
12,352
|
|
|
(15,742)
|
Net cash provided by operating activities
|
|
|
381,590
|
|
|
316,543
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Proceeds from short-term investments
|
|
|
15,000
|
|
|
—
|
Capital expenditures
|
|
|
(139,534)
|
|
|
(155,988)
|
Acquisitions, net of cash acquired
|
|
|
—
|
|
|
(386,793)
|
Other investments
|
|
|
(9,446)
|
|
|
(17,130)
|
Net cash used in investing activities
|
|
|
(133,980)
|
|
|
(559,911)
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Borrowings from short-term debt
|
|
|
1,358,274
|
|
|
593,641
|
Payments on short-term debt
|
|
|
(1,080,032)
|
|
|
(333,100)
|
Repurchase of common shares
|
|
|
(793,183)
|
|
|
(479,242)
|
Stock options exercised
|
|
|
12,904
|
|
|
14,851
|
Purchase of treasury shares
|
|
|
(10,876)
|
|
|
(13,238)
|
Net cash used in financing activities
|
|
|
(512,913)
|
|
|
(217,088)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(489)
|
|
|
—
|
Net decrease in cash and cash equivalents
|
|
|
(265,792)
|
|
|
(460,456)
|
Cash and cash equivalents at beginning of period
|
|
|
424,243
|
|
|
703,201
|
Cash and cash equivalents at end of period
|
|
$
|
158,451
|
|
$
|
242,745
|
Exhibit 5
|
|
Ulta Beauty, Inc. Store Update (Company-Operated) |
|
The following table presents store activities during the second quarter of fiscal 2026:
|
|
|
|
|
|
|
|
|
| United States |
| International |
| Total |
Opened
|
|
14
|
|
1
|
|
15
|
Closed
|
|
1
|
|
—
|
|
1
|
Net
|
|
13
|
|
1
|
|
14
|
|
|
|
|
|
|
|
Relocated
|
|
2
|
|
1
|
|
3
|
Remodeled
|
|
7
|
|
—
|
|
7
|
| | | | | | |
The following table presents store activities during the first six months of fiscal 2026:
|
|
| United States |
| International |
| Total |
Opened
|
|
32
|
|
2
|
|
34
|
Closed
|
|
3
|
|
—
|
|
3
|
Net
|
|
29
|
|
2
|
|
31
|
|
|
|
|
|
|
|
Relocated
|
|
3
|
|
2
|
|
5
|
Remodeled
|
|
7
|
|
—
|
|
7
|
| | | | | | |
The following table presents the number of stores owned (total gross square footage of 16.1 million) at the end of the second quarter of fiscal 2026:
|
|
|
|
|
|
|
|
|
| United States |
| International |
| Total |
Number of stores
|
|
1,534
|
|
88
|
|
1,622
|
Exhibit 6
|
|
Ulta Beauty, Inc. Consolidated Sales by Category |
|
The following tables set forth the approximate percentage of net sales by primary category:
|
|
|
|
|
|
|
| 13 Weeks Ended |
|
| August 1, |
| August 2, |
|
| 2026 |
| 2025 |
Cosmetics
|
|
37%
|
|
38%
|
Skincare and wellness
|
|
24%
|
|
25%
|
Haircare
|
|
20%
|
|
19%
|
Fragrance
|
|
13%
|
|
12%
|
Services
|
|
4%
|
|
4%
|
Other
|
|
2%
|
|
2%
|
|
|
100%
|
|
100%
|
| | | | |
| | 26 Weeks Ended |
| | August 1, | | August 2, |
| | 2026 | | 2025 |
Cosmetics
| |
38%
|
|
39%
|
Skincare and wellness
| |
24%
|
|
25%
|
Haircare
| |
19%
|
|
19%
|
Fragrance
| |
13%
|
|
11%
|
Services
| |
4%
|
|
4%
|
Other
| |
2%
|
|
2%
|
| |
100%
|
|
100%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260827939279/en/
Contacts:
Investor Contact:
Kiley Rawlins, CFA
Senior Vice President, Investor Relations
krawlins@ulta.com
Media Contact:
Natalie Navarre
Vice President, Public Relations & Social Marketing
nnavarre@ulta.com
Source: Ulta Beauty, Inc.
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