Ulta Beauty Q1 Earnings Lift Profit Forecast

Ulta Beauty’s Q1 earnings lifted its fiscal‑2026 profit outlook on June 2 after the company reported broad‑based sales growth, reduced inventory shrink, and higher merchandise margins that supported stronger quarterly earnings.

Quarter Results and Guidance

Ulta Beauty, Inc. (NASDAQ: ULTA) reported fiscal Q1 2026 results for the 13‑week period ended May 2, 2026, in a press release dated June 2. Net sales reached $3.2 billion, an 11.1% increase from a year earlier, driven by comparable sales gains, new stores, and the Space NK acquisition. Comparable sales rose 5.3%, with a 3.7% increase in average ticket and a 1.6% rise in transactions. Diluted earnings per share (EPS) were $7.74, up 15.5% from the prior year. The company raised its fiscal‑2026 diluted EPS guidance to a tighter range of $28.36 to $28.80, reflecting confidence in margin resilience.

Margins and Capital Priorities

Gross profit increased 13.8% to $1.3 billion, while gross margin expanded to 40.1% of net sales from 39.1% a year earlier. The company attributed the margin improvement to lower inventory shrink (losses) and higher merchandise margin, supported by strong demand for higher-priced products.

Selling, general, and administrative (SG&A) expenses rose 14.6% to $815 million, representing 25.8% of net sales compared with 24.9% a year earlier. The increase mainly reflected costs from the Space NK acquisition, strategic enterprise investments, and store expenses, partially offset by advertising expense leverage. Operating income grew 11.6% to $448 million, producing an operating margin of 14.2% of net sales.

Ulta returned $555 million to shareholders through share repurchases during the quarter. President and Chief Executive Kecia Steelman said fiscal 2026 is off to a strong start, emphasizing the company’s focus on long-term shareholder value through strategic growth initiatives and prudent cost management.