Ulta Beauty boosts financial outlook after strong Q2 results

Ulta Beauty has announced its Q2 2026 results, showing a net sales figure of US$3.04 billion, an 8.9% growth year-over-year. The company attributes the increase to growth in comparable sales, its acquisition of Space NK, and revenue from new stores.

In an earnings call, the cosmetics retailer highlighted its strength in prestige beauty, fragrance, and exclusive offerings. The K-beauty category delivered double-digit growth in sales, with nearly half of sales in the segment coming from exclusive products.

Ulta’s results suggest resilience in beauty demand. The company’s versatile brand positioning, with a range from accessible to premium price points, may also have allowed it to serve multiple customer segments, bolstering its results.

The retailer touts a smooth omnichannel shopping experience, which delivers convenient shopping and order fulfillment as a differentiator. It also states that its “value-rich” loyalty program rewards members through personalization, relevant offers, and exclusive deals, fostering returning customers. 

“We remain focused on executing with discipline against our plans and delivering strong, profitable sales growth and double-digit earnings growth for shareholders,” says Chris DelOrefice, CFO at Ulta. 

In light of its Q2 financials, the company increased its fiscal 2026 stock repurchase authorization to US$1.8 billion, from US$1.5 billion. The expanded buyback reflects the company’s continued capital return program and confidence in its fiUlta Beauty reports strong Q2 growth driven by premium products and expansion.nancial position.

Ulta raises outlook

Ulta’s gross profit rose 8.7% to US$1.2 billion, while comparable sales increased 3.8%. Meanwhile, gross profit decreased to 39.1% compared to 39.2% in Q2 2025, attributed to the impact of the Space NK business mix.

Ulta Beauty acquired Space NK and entered the UK market in July, 2025, as part of the company’s Beauty Unleashed strategy. The deal gave Ulta immediate access to Space NK’s established retail footprint across the UK and Ireland.

In this Q2, selling, general, and administrative expenses increased 8.2% to US$802.8 million, primarily due to the acquisition of Space NK. While financial terms have not disclosed the Space NK sale cost, reports suggest the value could exceed £300 million (US$405 million).

Operating income grew 10.1% to US$379.6 million, faster than sales’ 8.9%, showing modest operating leverage. Diluted earnings per share growth was strong, increasing 13.3% to US$6.55, helped by profit growth and share repurchases.

Ulta has also raised its full-year sales forecast, now expecting it to grow between 6.7% and 7.2%, up ⁠from its prior projection of between 6%–7%. The company places its expectations for diluted earnings per share between US$28.70 to US$29, up from its previous expectations of US$28.36 to US$28.80 per share.

Reuters reports that the company’s quarterly sales of US$3.04 billion outperformed analysts’ ⁠average estimate of US$2.96 billion.

“With our strong first-half performance, we have raised our financial guidance for the year, reflecting our confidence in our strategic priorities and our ability to drive profitable growth and long-term value for all stakeholders in a dynamic environment,” says Kecia Steelman, president and CEO of Ulta.

 Beauty Unleashed delivers results

Premium beauty and fragrance categories continue to drive Ulta Beauty sales.

In its earnings call, Ulta outlined key growth points driven by its Beauty Unleashed strategy, which was introduced after a sales decline at the end of 2024. 

“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,” says Steelman.

The company saw core business growth as it held over 40,000 in-store events and maintained e-commerce momentum, driving Gen-Z purchases. It reports that TikTok Shop gained traction with the addition of several new brands, one of which was the social media app’s first celebrity fragrance launch. 

It also launched 15 new brands and collaborated with existing brands to drive innovation and leverage white space opportunities.

Also part of its ongoing strategy to bolster growth, Ulta partnered with Bath & Body Works in June. The move made a curated assortment of its body care and home fragrance products available to Ulta shoppers across the US.