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Ulta Beauty 2026 Q1 Earnings Revenue Rises 4.5% as Net Income Declines 2.6%
Generated by AI AgentAinvest Earnings Report Digest
Friday, May 30, 2025 1:02 am ET2min read
Ulta Beauty (ULTA) reported its fiscal 2026 Q1 earnings on May 29th, 2025. The company surpassed analyst expectations with quarterly sales of $2.85 billion, beating the anticipated $2.79 billion. Following this strong performance, raised its full-year guidance, expecting annual profit in the range of $22.65 to $23.20 per share, up from the previous forecast. This adjustment reflects confidence in sustained consumer demand, despite a cautious outlook due to economic pressures affecting the second half of the year.
Revenue
Ulta Beauty's total revenue for Q1 2026 reached $2.85 billion, a 4.5% increase from $2.73 billion in the same quarter of the previous year. The cosmetics segment led the growth with revenue reaching $1.14 billion. Skincare and wellness followed, contributing $712.09 million, while haircare generated $512.71 million. Fragrance sales amounted to $313.32 million, services brought in $113.93 million, and other segments added $56.97 million, collectively driving the company's overall revenue growth.
Earnings/Net Income
Earnings per share (EPS) for Beauty rose by 3.2%, reaching $6.72 in Q1 2026 compared to $6.51 in Q1 2025. However, net income declined by 2.6%, decreasing to $305.05 million from $313.11 million. The increase in EPS was positive, signaling resilience despite the decline in net income.
Price Action
The stock price of Ulta Beauty edged down 0.61% during the latest trading day, climbed 4.21% over the most recent trading week, and jumped 9.15% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Ulta Beauty stock when revenue exceeds expectations and holding for 30 days has historically delivered moderate returns, although it also involved considerable volatility and risk. This approach achieved a compound annual growth rate (CAGR) of 10.86%, which underperformed the benchmark by 16.98 percentage points. The strategy's maximum drawdown reached -42.52%, and its Sharpe ratio stood at 0.30, highlighting the challenging risk-return profile. These metrics underscore the importance of vigilant risk management in navigating such volatility, especially for investors looking to capitalize on short-term gains without compromising long-term financial stability.
CEO Commentary
Kecia Steelman, President & CEO of Ulta Beauty, expressed optimism about the company's performance, highlighting a 4.5% increase in net sales to $2.8 billion. She noted that key actions, such as improved execution and exciting new brand launches, contributed to market share gains. Steelman emphasized the importance of understanding consumer behavior, stating that beauty remains a priority for consumers despite economic pressures. She outlined the Ulta Beauty Unleashed plan, which focuses on enhancing guest experience, optimizing operations, and driving brand partnerships. Steelman concluded with confidence in the team's ability to navigate challenges and drive sustainable growth.
Guidance
Ulta Beauty now expects net sales for fiscal 2025 to range between $11.5 billion and $11.7 billion, with comparable sales growth anticipated between flat and 1.5%. The operating profit margin is projected to be between 11.7% and 11.8%. Diluted earnings per share are forecasted to be between $22.65 and $23.20. The company remains cautious regarding the second half of the year, acknowledging potential challenges stemming from economic fluctuations and adjusting its guidance accordingly.
Additional News
In recent weeks, Ulta Beauty has made significant strides in its strategic initiatives beyond earnings metrics. The company announced a $3 billion share repurchase program, reinforcing its commitment to returning capital to shareholders. Furthermore, Ulta Beauty has appointed Lauren Brindley as the new Chief Merchandising and Digital Officer, a move aimed at enhancing its merchandising strategy and digital transformation efforts. Additionally, Ulta Beauty partnered with Beyoncé's COWBOY CARTER TOUR to deliver a unique concert-ready beauty experience, further solidifying its brand presence and engagement with consumers.
Revenue
Ulta Beauty's total revenue for Q1 2026 reached $2.85 billion, a 4.5% increase from $2.73 billion in the same quarter of the previous year. The cosmetics segment led the growth with revenue reaching $1.14 billion. Skincare and wellness followed, contributing $712.09 million, while haircare generated $512.71 million. Fragrance sales amounted to $313.32 million, services brought in $113.93 million, and other segments added $56.97 million, collectively driving the company's overall revenue growth.
Earnings/Net Income
Earnings per share (EPS) for Beauty rose by 3.2%, reaching $6.72 in Q1 2026 compared to $6.51 in Q1 2025. However, net income declined by 2.6%, decreasing to $305.05 million from $313.11 million. The increase in EPS was positive, signaling resilience despite the decline in net income.
Price Action
The stock price of Ulta Beauty edged down 0.61% during the latest trading day, climbed 4.21% over the most recent trading week, and jumped 9.15% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Ulta Beauty stock when revenue exceeds expectations and holding for 30 days has historically delivered moderate returns, although it also involved considerable volatility and risk. This approach achieved a compound annual growth rate (CAGR) of 10.86%, which underperformed the benchmark by 16.98 percentage points. The strategy's maximum drawdown reached -42.52%, and its Sharpe ratio stood at 0.30, highlighting the challenging risk-return profile. These metrics underscore the importance of vigilant risk management in navigating such volatility, especially for investors looking to capitalize on short-term gains without compromising long-term financial stability.
CEO Commentary
Kecia Steelman, President & CEO of Ulta Beauty, expressed optimism about the company's performance, highlighting a 4.5% increase in net sales to $2.8 billion. She noted that key actions, such as improved execution and exciting new brand launches, contributed to market share gains. Steelman emphasized the importance of understanding consumer behavior, stating that beauty remains a priority for consumers despite economic pressures. She outlined the Ulta Beauty Unleashed plan, which focuses on enhancing guest experience, optimizing operations, and driving brand partnerships. Steelman concluded with confidence in the team's ability to navigate challenges and drive sustainable growth.
Guidance
Ulta Beauty now expects net sales for fiscal 2025 to range between $11.5 billion and $11.7 billion, with comparable sales growth anticipated between flat and 1.5%. The operating profit margin is projected to be between 11.7% and 11.8%. Diluted earnings per share are forecasted to be between $22.65 and $23.20. The company remains cautious regarding the second half of the year, acknowledging potential challenges stemming from economic fluctuations and adjusting its guidance accordingly.
Additional News
In recent weeks, Ulta Beauty has made significant strides in its strategic initiatives beyond earnings metrics. The company announced a $3 billion share repurchase program, reinforcing its commitment to returning capital to shareholders. Furthermore, Ulta Beauty has appointed Lauren Brindley as the new Chief Merchandising and Digital Officer, a move aimed at enhancing its merchandising strategy and digital transformation efforts. Additionally, Ulta Beauty partnered with Beyoncé's COWBOY CARTER TOUR to deliver a unique concert-ready beauty experience, further solidifying its brand presence and engagement with consumers.
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