Earnings climb 13% as sales top $3 billion and retailer boosts planned share repurchases to $1.8 billion
Ulta Beauty (ULTA) reported strong fiscal second-quarter 2026 results, with higher sales and profits prompting the beauty retailer to raise its full-year financial outlook.
Net sales increased 8.9% year over year to $3.04 billion, compared with $2.79 billion in the prior-year quarter. Growth was driven by higher comparable sales, new store openings and the acquisition of Space NK. Comparable sales increased 3.8%, although that marked a slowdown from 6.7% growth a year earlier.
Profitability also improved. Operating income climbed 10.1% to $379.6 million, while operating margin edged higher to 12.5% from 12.4%. Diluted earnings per share increased 13.3% to $6.55, compared with $5.78 in the year-ago period.
Gross profit rose 8.7% to approximately $1.2 billion, while gross margin slipped slightly to 39.1% from 39.2%, primarily reflecting the impact of the Space NK business mix.
CEO Kecia Steelman said the results demonstrate continued execution of the company’s “Ulta Beauty Unleashed” strategy, with the retailer focused on product innovation, value, customer experiences and convenience.
Following its strong first-half performance, Ulta raised its fiscal 2026 outlook. The company now expects net sales growth of 6.7% to 7.2%, up from its previous forecast of 6% to 7%. Comparable sales are projected to increase between 3.2% and 3.7%.
Ulta also lifted its diluted EPS forecast to $28.70 to $29.00, compared with its previous range of $28.36 to $28.80.
The company is also becoming more aggressive with capital returns. Ulta increased its expected fiscal 2026 stock repurchases to $1.8 billion from $1.5 billion and plans to utilize the remaining $1 billion under its existing authorization by year-end.
The combination of stronger earnings, higher guidance and expanded buybacks underscores management’s confidence in Ulta’s ability to deliver profitable growth despite a dynamic consumer environment.
