Ulta Beauty Earnings Beat, Raises 2026 Guidance

Ulta Beauty, Inc. (NASDAQ: ULTA) reported second-quarter earnings that exceeded expectations and raised its fiscal 2026 guidance, citing strong first-half results, the Space NK acquisition, and marketing investments that boosted sales and profitability.

Second-Quarter Results and Financial Performance

In a Form 8-K filed on August 27, 2026, Ulta reported net sales of $3,035.7 million for the 13-week period ended August 1, an 8.9% increase year over year. Diluted earnings per share (EPS) rose 13.3% to $6.55, modestly surpassing consensus estimates near $6.18–$6.20. Comparable sales grew 3.8% during the quarter.

Operating income increased 10.1% to $379.6 million, while net income reached $282.0 million. Gross profit rose about 8.7% to roughly $1.2 billion, with gross margin slightly declining to 39.1% of net sales from 39.2% a year earlier. The company attributed the margin dip primarily to the Space NK business mix. Selling, general, and administrative expenses climbed 8.2% to $802.8 million, mainly due to costs related to the Space NK acquisition.

Operating cash flow improved 24.0% year over year to approximately $119.7 million. Capital expenditures totaled about $81.3 million for property and equipment. Ulta ended the period with $158.5 million in cash and cash equivalents and had repurchased roughly $791 million of shares year to date.

Raised Fiscal 2026 Guidance

Ulta updated its fiscal 2026 outlook in a press release on August 27, projecting net sales growth of 6.7%–7.2%, comparable sales growth of 3.2%–3.7%, and operating income growth of 8.3%–9.3%. Diluted EPS guidance was raised to a range of $28.70–$29.00 from the prior $28.36–$28.80. Capital expenditure guidance remained at $400–$450 million. The company increased its planned share repurchases to $1.8 billion from $1.5 billion, linking the change to strong first-half performance and capital allocation plans.

Management attributed the higher outlook to disciplined execution of its Ulta Beauty Unleashed strategy, along with marketing and product assortment investments, new store openings, and the Space NK acquisition as key drivers amid a dynamic macroeconomic environment. Kecia Steelman, president and CEO, said, “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.”