WS Investor
03 Jun 2026, 12:39
Ulta Beauty Edges Higher After Strong Quarter and Raised Earnings Outlook
Shares of Ulta Beauty (NASDAQ: ULTA) were modestly higher in premarket trading after the company reported strong first-quarter results and raised its full-year earnings outlook.
The beauty retailer posted first-quarter net sales of $3.16 billion, up 11.1% year-over-year, while comparable sales increased 5.3%, driven by higher transaction volumes and larger average purchases. Diluted earnings per share rose 15.5% to $7.74, comfortably outpacing sales growth as profitability improved.
Gross margin expanded to 40.1% from 39.1% a year earlier, benefiting from lower inventory shrink and stronger merchandise margins. Operating income increased 11.6% to $448.3 million, reflecting broad-based strength across product categories and sales channels.
Management highlighted continued momentum despite an uncertain consumer environment, citing strong execution, new brand launches, and contributions from the recent acquisition of Space NK. The company also returned $555 million to shareholders through share repurchases during the quarter.
Reflecting the strong start to the year, Ulta raised its fiscal 2026 earnings guidance. The company now expects diluted earnings per share of $28.36 to $28.80, up from its previous forecast of $28.05 to $28.55, while maintaining its outlook for 6% to 7% sales growth.
The muted stock reaction suggests investors had largely anticipated solid results, but the report reinforced Ulta's ability to deliver growth, margin expansion, and shareholder returns despite ongoing macroeconomic uncertainty.
Shares of Ulta Beauty (NASDAQ: ULTA) were modestly higher in premarket trading after the company reported strong first-quarter results and raised its full-year earnings outlook.
The beauty retailer posted first-quarter net sales of $3.16 billion, up 11.1% year-over-year, while comparable sales increased 5.3%, driven by higher transaction volumes and larger average purchases. Diluted earnings per share rose 15.5% to $7.74, comfortably outpacing sales growth as profitability improved.
Gross margin expanded to 40.1% from 39.1% a year earlier, benefiting from lower inventory shrink and stronger merchandise margins. Operating income increased 11.6% to $448.3 million, reflecting broad-based strength across product categories and sales channels.
Management highlighted continued momentum despite an uncertain consumer environment, citing strong execution, new brand launches, and contributions from the recent acquisition of Space NK. The company also returned $555 million to shareholders through share repurchases during the quarter.
Reflecting the strong start to the year, Ulta raised its fiscal 2026 earnings guidance. The company now expects diluted earnings per share of $28.36 to $28.80, up from its previous forecast of $28.05 to $28.55, while maintaining its outlook for 6% to 7% sales growth.
The muted stock reaction suggests investors had largely anticipated solid results, but the report reinforced Ulta's ability to deliver growth, margin expansion, and shareholder returns despite ongoing macroeconomic uncertainty.