Aug 27, 2026 earnings call — Raised sales and earnings guidance
Raised fiscal 2026 net sales growth outlook to between 6.7% and 7.2%.
Revenue $3.0B (est $3.0B) · EPS $6.55 (est $6.22)
Key quotes
"We now expect fiscal 2026 net sales growth to be between 6.7% and 7.2% with comp sales growth between 3.2% and 3.7%."
"E-commerce momentum continued in Q2 as we delivered our sixth consecutive quarter of double-digit sales growth driven by ongoing investments in our guest experience, omni-channel capabilities and emerging channels."
"Our robust loyalty program, which now encompasses about 47 million active members, remains central to inspiring members through personalized experiences, meaningful rewards and exclusive benefits that deepen engagement and build lasting relationships with Ulta Beauty."
Analyst Q&A 9
Makeup sales and outlook
Q (Rupesh Parikh · Oppenheimer): The analyst asked what Ulta is seeing in the makeup category, why comps were flat, and whether there are any signs of improvement for the back half of the fiscal year.
A: They said mass makeup was weak mainly because major brands had little newness and were lapping strength from last year. They see trend signs like fuller face and more expressive eye looks and expect new product launches in mass and prestige in the back half. Management said these trends and newness could show green shoots for makeup later this year.
"Mass makeup performance was mostly a reflection of lack of newness from some of the major brands as they lapped some strength from last year." — Kecia Steelman (CEO)
Promotions and competitive promos
Q (Lorraine Maikis · BofA): The analyst asked how promotional activity has been at Ulta and among competitors, and what the company included in its second-half outlook.
A: They said value is more important to guests and the overall promotional environment ticked up a little in the market, and Ulta was a little more promotional year-over-year. They said they were strategic in promotions (Big Summer Beauty Sale, Mother's Day, Father's Day, Prime Days) and that their forecast is flexible so they can respond dynamically while balancing profitability.
"The overall promotional environment did tick up a little bit in both the market, and we were a little bit more promotional year-over-year." — Kecia Steelman (CEO)
Quarter acceleration and guidance
Q (Christopher Horvers · JPMorgan): The analyst asked whether second-quarter sales showed acceleration versus the first quarter, what drove the better-than-expected result, and whether the 2% to 3% comp guide for the back half reflects anything non-recurring.
A: They said sales picked up during the quarter versus the information available at the prior call, and they raised full-year guidance to 6.7% to 7.2% sales and total comp 3.2% to 3.7%. They expect implied second-half comp growth of 2% to 3% and said they remain prudent given macro uncertainty while maintaining conviction in the guidance.
"As you think of the second half of the year, we continue to make an assumption on growing share as we move into the second half of the year." — Christopher DelOrefice (CFO)
Responding to competitors
Q (Anthony Chukumba · Loop): The analyst asked whether Ulta would increase promotions if competitors (including a former partner opening shop-in-shops) become more aggressive, especially into the holiday season.
A: They said they will not chase competitors but will lean into what differentiates Ulta: discovery, unmatched choices, exclusives and brand building, and that exclusives deepen loyalty. They said the guidance already allows them to remain promotional if needed, and they highlighted productivity gains in gross margin and SG&A that let them invest in marketing and preserve flexibility.
"Our guidance has built in the ability for us to remain promotional if needed." — Kecia Steelman (CEO)
K-Beauty strategy and impact
Q (Krisztina Katai · Deutsche Bank): The analyst asked how Ulta will keep its advantage in K-Beauty as it becomes more available, and how much that category contributed to comp growth.
A: They said Ulta has led K-Beauty in the U.S., is expanding beyond K-Beauty (citing Proya launch) and will curate brands carefully to avoid fast-fashion noise. They said they will scale the strongest concepts across the broader portfolio, including makeup and hair, and focus on global innovation and storytelling.
"We're learning quickly from the guest response, and we're just going to continue to scale the strongest concepts across our ecosystem in a broad-based way." — Kecia Steelman (CEO)
Digital vs store profitability
Q (Sydney Wagner · Jefferies): The analyst asked about progress closing the profitability gap between digital and store sales as store fulfillment passes 50% of e-commerce orders, and other levers beyond fulfillment.
A: They said supply chain productivity and leveraging the store footprint helped absorb costs and provide gross margin leverage this year, including leverage from store fixed costs. They also said future gross margin benefit will come from new value vectors like Marketplace and UB Media and from continued productivity.
"To your point, kind of the leverage of our store footprint becomes an effective mechanism to manage the delta between the transportation costs, and we're going to continue to drive that lever in addition to additional productivity." — Christopher DelOrefice (CFO)
New product strength and competition
Q (Susan Anderson · Canaccord Genuity): The analyst asked what newness is coming in the back half, which categories may be stronger (fragrance, skin), and how Ulta balances investment between mass and prestige.
A: They said they feel great about the back-half newness and that the merchant team has balanced the pipeline, and that this is built into guidance. They said roughly 30% of sales come from mass and 70% from prestige, they held share roughly flat in mass, and they gained share in prestige in both store and e-commerce.
"We feel great about the newness, and we feel like it's very balanced." — Kecia Steelman (CEO)
Consumer behavior and Space NK learnings
Q (Olivia Tong Cheang · Raymond James): The analyst asked whether Ulta is seeing trade-down or affordability behavior, and for learnings from Space NK, international rollout and Marketplace after one year.
A: They said they have not seen notable changes in consumer behavior this quarter and that they are seeing increases in spend across age and income segments. They said the Space NK acquisition has provided learnings on clienteling, loyalty and second purchases, and Ulta has brought scale and operational efficiencies to Space NK; they view the combination as stronger together and are pleased with Space NK's comp growth in the U.K.
"We have not seen any notable changes in consumer behavior in the quarter, and that means both the demographics from an age perspective and also from an income perspective, is that we're seeing increases in spend across the broader segmentation." — Kecia Steelman (CEO)
Wellness and services growth
Q (Adrienne Yih-Tennant · Barclays): The analyst asked how Ulta defines and curates wellness to grow it, and whether services beyond hair care could expand.
A: They said wellness focuses on four pillars: nutrition and supplements, intimate care, rest and relax, and essential routine, and they are learning fast from stores and Marketplace. They said wellness could be a next big pillar without cannibalizing existing sales, and on services they noted ear piercing was added, they backed away from some skin services, the salon business is becoming more profitable, and they have nothing big new to share on services now.
"What we've done is over the course of our introduction of wellness is that we've really focused on 4 strategic pillars." — Kecia Steelman (CEO)