Ulta Beauty, Inc. (NASDAQ: ULTA) reported second quarter fiscal 2026 results on August 27, 2026, and raised its outlook for the full fiscal year. Net sales for the thirteen weeks ended August 1, 2026, rose 8.9% to $3 billion, compared with $2.8 billion in the same period last year.
The Bolingbrook, Illinois-based specialty beauty retailer operates more than 1,600 stores in the United States and internationally, alongside its e-commerce and mobile app channels. The company's international footprint includes Space NK, a United Kingdom and Ireland beauty retailer it acquired in 2025, along with a joint venture in Mexico and a franchise in the Middle East.
#Ulta Beauty Comparable Sales Rise 3.8% in the Quarter
Comparable sales, which include stores open at least 14 months and e-commerce, increased 3.8% in the second quarter. That compares with 6.7% growth in the second quarter of fiscal 2025.
Gross profit rose 8.7% to $1.2 billion. As a percentage of net sales, gross profit narrowed to 39.1% from 39.2%, which the company attributed to the impact of the Space NK business mix.
Selling, general and administrative expenses increased 8.2% to $802.8 million, driven by the Space NK acquisition. As a percentage of net sales, SG&A expenses declined to 26.4% from 26.6%.
Operating income increased 10.1% to $379.6 million, representing 12.5% of net sales, up from 12.4% a year earlier.
Diluted earnings per share rose 13.3% to $6.55 in the second quarter, compared with $5.78 in the prior-year period. Net income was $282 million, or 9.3% of net sales, compared with $260.9 million, or 9.4% of net sales, a year earlier.
"Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests," said Kecia Steelman, president and chief executive officer of Ulta Beauty, in the earnings release. Steelman attributed the updated guidance to the company's first-half performance and its confidence in its strategic priorities, according to the release.
#Ulta Beauty Lifts Full-Year Sales and Earnings Outlook
The company updated its fiscal 2026 outlook. Net sales growth is now expected to be 6.7% to 7.2%, up from a prior range of 6% to 7%.
Comparable sales growth guidance moved to a range of 3.2% to 3.7%, from a prior range of 2.5% to 3.5%.
Operating income growth is now projected at 8.3% to 9.3%, compared with a prior range of 6.5% to 9%.
Diluted earnings per share guidance rose to a range of $28.70 to $29, from a prior range of $28.36 to $28.80. Capital expenditure guidance of $400 million to $450 million was unchanged.
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#Ulta Beauty Increases Fiscal 2026 Stock Repurchase Plan to $1.8 Billion
The company said its stock repurchase plan for fiscal 2026 was increased to $1.8 billion from $1.5 billion. During the first six months of the fiscal year, Ulta Beauty repurchased 1.4 million shares for $791.1 million, excluding excise taxes.
As of August 1, 2026, $1 billion remained available under the company's existing $3 billion share repurchase program, which was announced in October 2024. The company said it now expects to use the remaining $1 billion under that authorization by the end of fiscal 2026.
Cash and cash equivalents stood at $158.5 million at the end of the quarter, down from $242.7 million a year earlier, while short-term debt rose to $339.6 million. Merchandise inventories were $2.4 billion, roughly flat year over year. Capital expenditures for the first half of fiscal 2026 totaled $139.5 million.
Ulta Beauty opened 15 net new stores in the second quarter, including 14 in the United States and one internationally, while closing one location. The company ended the quarter with 1,622 stores, comprising 1,534 in the United States and 88 internationally, spanning 16.1 million square feet of retail space.
By category, cosmetics accounted for 37% of second quarter net sales, down from 38% a year earlier, while fragrance rose to 13% of sales from 12%. Skincare and wellness represented 24% of sales, haircare 20%, services 4%, and other categories 2%.
Ulta Beauty said it expects continued net sales, comparable sales, and earnings growth for the remainder of fiscal 2026, though the company cautioned that global, regional, and local economic, competitive, market, and regulatory conditions could cause actual results to differ from its updated outlook, according to the release.