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% and comparable sales up 5.4%, driven by new stores, Space NK acquisition, and strong holiday events.

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

• Market share increased in both mass and prestige beauty segments, supported by omni-channel execution and successful holiday promotions.

• Loyalty program reached a record 46.7 million active members, up 5% year-over-year; active app users up 15%.

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

Financial highlights

• Q4 net sales were $3.9 billion, up 11.8%; full-year net sales $12.4 billion, up 9.7%; comparable sales up 5.8% in Q4 and 5.4% for the year.

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

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

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

• SG&A for Q4 rose 23% to $1 billion, mainly due to higher incentive compensation and Space NK impact; full-year SG&A was $3.3 billion.

Outlook and guidance

• Fiscal 2026 net sales expected to grow 6%-7% to $13.1-$13.2 billion, with comparable sales growth of 2.5%-3.5%.

• Operating profit projected to increase 6%-9%, with operating margin flat to up 20 bps.

• Diluted EPS guidance: $28.05-$28.55, up 9.4%-11.4%.

• Capital expenditures planned at $400-$450 million, focused on store expansion, digital, IT, and supply chain.

• $1 billion planned for share repurchases in 2026.