US speciality beauty retailer Ulta Beauty posted first-quarter (Q1) net sales of $3.16bn, an 11.1% year-on-year (YoY) increase, as comparable sales growth, new store openings and the Space NK acquisition combined to lift revenue.
Net income for the quarter ended 2 May 2026 reached $340.4m, against $305m in the comparable prior-year period. Diluted earnings per share (EPS) rose 15.5% to $7.74.
Operating income rose 11.6% to $448.2m, equivalent to 14.2% of net sales.
Ulta Beauty president and CEO Kecia Steelman said: “Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories. Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape.”
Comparable sales advanced 5.3%, underpinned by a 3.7% rise in average ticket and a 1.6% uptick in transactions.
Gross profit grew 13.8% to $1.26bn, with gross margin widening to 40.1% of net sales from 39.1% a year earlier, reflecting decreased inventory shrink and improved merchandise margin.
Selling, general and administrative expenses climbed 14.6% to $814.6m, or 25.8% of net sales, up from 24.9%, with the increase largely attributable to the Space NK acquisition.
Corporate overhead deleverage from strategic enterprise investments and higher store expenses added to the pressure, partially offset by advertising expense leverage.
Merchandise inventories expanded 12.5% to $2.38bn, reflecting stock built ahead of new brand launches, the Space NK integration, targeted category investments, and the addition of 70 net new Ulta Beauty stores since 3 May 2025.
During the quarter, the company opened 18 US stores and closed two, adding a net 16 domestic locations alongside one company-operated international store.
Its total estate stood at 1,521 US locations and 87 international company-operated stores as of 2 May 2026.
By category, cosmetics remained the largest segment at 40% of net sales, unchanged year-on-year.
Skincare and wellness slipped to 24% from 25%, haircare held at 18%, fragrance edged up to 12% from 11%, and services were steady at 4%.
For FY26, Ulta Beauty maintained its net sales growth outlook of 6% to 7% and comparable sales growth guidance of 2.5% to 3.5%.
The operating income growth range was narrowed to 6.5%-9% from the previously indicated 6%-9% while diluted EPS guidance was revised upward to $28.36-$28.80 from $28.05-$28.55.
Steelman added: “Looking ahead, we remain focused on delivering long-term shareholder value through our strategic growth initiatives, continued prudent cost management, and our differentiated guest experience.”
