Ulta Beauty (NASDAQ:ULTA) Posts Earnings Results, Beats Expectations By $0.33 EPS

Ulta Beauty (NASDAQ:ULTA) issued its quarterly earnings results on Thursday. The specialty retailer reported $6.55 EPS for the quarter, topping the consensus estimate of $6.22 by $0.33, FiscalAI reports. Ulta Beauty had a return on equity of 45.28% and a net margin of 9.34%.The firm had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.99 billion. During the same period in the previous year, the business earned $5.78 earnings per share. The firm’s revenue for the quarter was up 8.9% on a year-over-year basis. Ulta Beauty updated its FY 2026 guidance to 28.700-29.000 EPS.

Here are the key takeaways from Ulta Beauty’s conference call:

• Ulta raised its fiscal 2026 outlook after a strong first half, now expecting net sales growth of 6.7%–7.2%, comparable-sales growth of 3.2%–3.7%, and diluted EPS of $28.70–$29.00. The company also increased its planned fiscal-year share repurchases to $1.8 billion.
• Second-quarter net sales rose 8.9% to $3.0 billion, comparable sales increased 3.8%, operating profit grew 10.1%, and diluted EPS rose 13.3% to $6.55. E-commerce delivered high-teen growth, marking the sixth consecutive quarter of double-digit digital sales growth.
• Fragrance remained the strongest category, with high-teen comparable growth supported by gifting occasions, exclusive launches, and luxury brands; haircare also delivered high-single-digit growth. K-beauty sales grew at a robust double-digit rate, with nearly half of sales from exclusive brands or products.
• Management said the promotional environment intensified modestly as consumers focused more on value, but Ulta used targeted promotions and personalization while balancing market-share gains with profitability. The company has built flexibility into its second-half plan to respond to competitive and macroeconomic changes.
• Ulta expects a slower second half, with sales growth of 4%–5% and comparable-sales growth of 2%–3%, partly because it will be lapping stronger results from the prior year. Gross margin is expected to be roughly flat for the full year, with second-half pressure from fuel costs, channel mix, and the absence of last year’s price-action benefit.

Ulta Beauty Stock Down 4.2%

NASDAQ ULTA opened at $517.50 on Friday. The business’s fifty day simple moving average is $497.56 and its 200-day simple moving average is $534.74. The firm has a market cap of $22.25 billion, a PE ratio of 18.86, a P/E/G ratio of 1.65 and a beta of 0.87. Ulta Beauty has a 52 week low of $443.60 and a 52 week high of $714.97.

More Ulta Beauty News

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Quarterly results exceeded expectations. Ulta reported $6.55 in EPS versus the $6.20 consensus and revenue of approximately $3.04 billion, up 8.9% year over year and ahead of the $2.99 billion estimate. Comparable sales rose 3.8%, while digital sales, loyalty growth, new brands and stronger execution supported performance. Ulta Beauty Q2 Earnings Beat as Sales Rise, FY26 View Raised
• Positive Sentiment: Ulta raised its fiscal 2026 outlook and expanded capital returns. The company now expects EPS of $28.70–$29.00, up from $28.36–$28.80, and revenue of roughly $13.2–$13.3 billion. It also increased its planned share repurchases to $1.8 billion, which could provide support for per-share earnings. Ulta Beauty Targets Sales Growth and Buybacks
• Neutral Sentiment: Analysts remain broadly constructive, but estimates are mixed. DA Davidson raised its price target to $625 and maintained a Buy rating, while Bank of America lowered its target to $650 but also kept a Buy rating. The conflicting revisions suggest confidence in Ulta’s long-term share gains, alongside caution about valuation and execution risks.
• Negative Sentiment: The market reaction reflects concerns about forward momentum. Management indicated that third-quarter comparable-sales comparisons may be weaker than fourth-quarter comparisons, increasing the risk of a temporary slowdown. Investors are also focused on Target’s rollout of its own Beauty Studio in more than 600 stores, including five former Ulta locations in South Carolina, potentially intensifying competition for prestige beauty customers. Ulta is responding by emphasizing exclusive products and brand differentiation. Ulta Leans Into Exclusivity Amid Target Competition

Insider Activity

In related news, Director George R. Mrkonic, Jr. sold 383 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $475.84, for a total transaction of $182,246.72. Following the completion of the sale, the director directly owned 2,404 shares in the company, valued at approximately $1,143,919.36. This trade represents a 13.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Ulta Beauty

Several institutional investors and hedge funds have recently bought and sold shares of the company. BOKF NA purchased a new stake in shares of Ulta Beauty in the 3rd quarter valued at approximately $31,000. Virtus Advisers LLC purchased a new stake in shares of Ulta Beauty during the 4th quarter valued at approximately $33,000. Greenline Wealth Management LLC acquired a new position in Ulta Beauty in the fourth quarter valued at approximately $37,000. DV Equities LLC acquired a new position in Ulta Beauty in the fourth quarter valued at approximately $38,000. Finally, Darwin Wealth Management LLC purchased a new position in Ulta Beauty in the second quarter worth approximately $50,000. 90.39% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ULTA has been the subject of a number of research reports. Barclays dropped their target price on shares of Ulta Beauty from $647.00 to $645.00 and set an “overweight” rating for the company in a report on Friday. UBS Group set a $631.00 price target on shares of Ulta Beauty in a research note on Friday. William Blair restated a “market perform” rating on shares of Ulta Beauty in a research report on Friday, August 21st. The Goldman Sachs Group increased their price objective on shares of Ulta Beauty from $648.00 to $667.00 and gave the company a “buy” rating in a report on Friday. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $650.00 target price on shares of Ulta Beauty in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Ulta Beauty has a consensus rating of “Moderate Buy” and a consensus price target of $626.59.

About Ulta Beauty

Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.