Ulta Beauty (ULTA) Q4 2026 earnings summary

Executive summary

• Net sales grew 9.7% to $12.4 billion for the year, with Q4 sales up 11.8%, driven by comparable sales, new stores, and the Space NK acquisition.

• Operating income reached $1.5 billion (12.4% of sales), and diluted EPS was $25.64, up 1.2% year-over-year.

• Market share gains in both mass and prestige beauty segments were supported by strong holiday events, omni-channel execution, and post-holiday sales.

• Strategic investments in guest experience, digital upgrades, and supply chain optimization supported growth and operational excellence.

• Expanded internationally through the Space NK acquisition and new partnerships, adding stores in the UK, Ireland, Mexico, and the Middle East.

Financial highlights

• Q4 net sales were $3.9 billion, up 11.8% year-over-year; full-year net sales rose 9.7% to $12.4 billion.

• Comparable sales increased 5.8% in Q4 and 5.4% for the year, with growth in both average ticket and transactions.

• Gross margin for Q4 was 38.1% (down 10 bps YoY); full-year gross margin was 39.1% (up 30 bps YoY).

• Q4 operating profit was $477 million (12.2% of sales); full-year operating profit $1.5 billion (12.4% of sales).

• Diluted EPS for Q4 was $8.01; full-year EPS $25.64.

Outlook and guidance

• Fiscal 2026 net sales expected to grow 6–7%, with comparable sales growth of 2.5–3.5%.

• Operating income projected to grow 6–9%, with operating margin flat to up 20 bps.

• Diluted EPS guidance of $28.05–$28.55, representing 9.4–11.4% growth.

• Capex planned at $400–$450 million, focused on store expansion, digital, IT, and supply chain.

• Approximately $1 billion in capital to be returned to shareholders via stock repurchases.