Ulta Beauty 2026 Q2 Earnings Net Income Grows 3.3%

Ulta Beauty (ULTA) reported its fiscal 2026 Q2 earnings on August 28, 2025, showcasing strong performance across key financial metrics. The company exceeded expectations with a 9.3% revenue increase and 9% higher EPS compared to the prior year.

Revenue
Ulta Beauty’s total revenue for fiscal 2026 Q2 rose by 9.3% to $2.79 billion, compared to $2.55 billion in the prior year. Cosmetics led the revenue segment with $1.06 billion, followed by Skincare and wellness at $697.12 million. Haircare contributed $529.81 million, while Fragrance added $334.62 million. The Services segment generated $111.54 million, and Other segments accounted for $55.77 million, rounding out the $2.79 billion in total revenue.

Earnings/Net Income
Ulta Beauty’s earnings per share (EPS) increased by 9.0% to $5.80 in fiscal 2026 Q2, compared to $5.32 in the same period the previous year. The company’s net income also rose by 3.3% to $260.88 million from $252.56 million in the prior year, reflecting improved profitability.

Price Action
Shares of Ulta Beauty edged down 0.70% on the latest trading day but gained 2.01% during the most recent full trading week. The stock climbed 3.31% month-to-date, showing positive momentum.

Post-Earnings Price Action Review
A strategy of buying ULTA shares 30 days after a quarterly earnings report that exceeds revenue expectations has historically returned 33.51% over the past three years, slightly underperforming the benchmark return of 51.77%. With a Sharpe ratio of 0.26, the strategy offers reasonable risk-adjusted returns. However, its maximum drawdown of 0.00% indicates no downside risk, which may concern risk-averse investors.

CEO Commentary
Kecia L. Steelman, CEO of Ulta Beauty, highlighted the company’s Q2 performance, noting net sales growth of 9.3% and operating profit of 12.4% of sales. She attributed the success to improved in-store execution and the Ulta Beauty Unleashed strategy. Steelman emphasized comp sales growth of 6.7%, loyalty member expansion, and category-specific achievements in fragrance and skincare. Looking ahead, she outlined strategic priorities, including international expansion through the Space NK acquisition, wellness expansion, and digital personalization. Despite acknowledging macroeconomic challenges and cautious planning, Steelman expressed confidence in the team and strategy to deliver sustainable growth.

Guidance
Ulta Beauty expects 2025 consolidated net sales between $12 billion and $12.1 billion, with comp sales growth of 2.5% to 3.5%. The company forecasts operating profit to decline in the high single-digit range, with an operating margin between 11.9% and 12%. SG&A expenses are expected to rise 13% to 14%, driven by incentive compensation and strategic investments. Diluted EPS is guided to be between $23.85 and $24.30 per share, assuming a 24% tax rate and including the impact of share repurchases.

Additional News
On July 28, 2024, Sina.com, China’s major news platform, highlighted several non-earnings related developments. Among the notable updates, China reiterated its firm stance on cross-strait unification, emphasizing that the trend toward unification is irreversible. In the corporate realm, real estate company Evergrande continues to face challenges, with ongoing discussions about its restructuring and potential government intervention. The article also detailed recent advancements in China’s renewable energy sector, including the expansion of solar and wind power projects, signaling a shift toward sustainable energy sources. Additionally, a new mobile satellite communication service was launched, aiming to enhance connectivity for remote areas and improve the digital infrastructure.