ULTA Beauty (ULTA) ULTA Q2 Financial Results Summary
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Ulta Beauty (ULTA) Q2 2026: Revenue Growth and EPS Increase — Positive Outlook
Ulta Beauty, Inc. (NASDAQ: ULTA) reported a strong second quarter for fiscal 2026, with net sales increasing by $246.9 million or +8.9% year-over-year, reaching $3,035.7 million compared to $2,788.5 million in the same quarter last year. This performance reflects the company's effective execution of its growth strategies, including the acquisition of Space NK and the opening of new stores.
Key Financial Metrics:
- Net Sales: $3,035.7 million, up $246.9 million or +8.9% YoY
- Comparable Sales: Increased by 3.8%
- Operating Income: Increased by 10.1% to $379.6 million
- Diluted EPS: Increased by 13.3% to $6.55
- Gross Profit: Increased by 8.7% to $1,186.9 million, with a slight decrease in gross margin to 39.1% from 39.2%
- SG&A Expenses: Increased by 8.2% to $802.8 million, with a decrease in SG&A as a percentage of net sales to 26.4% from 26.6%
Analyst View:
This quarter is a positive outcome for shareholders, showcasing Ulta's ability to drive revenue and profit growth despite a competitive retail environment. The increase in diluted EPS to $6.55, up from $5.78, indicates strong operational efficiency and effective cost management. The company's strategic initiatives, including the integration of Space NK and the expansion of its store footprint, are paying off, as evidenced by the solid comparable sales growth of 3.8%.
Additionally, Ulta Beauty has raised its fiscal 2026 guidance, reflecting confidence in its growth trajectory:
- Updated Net Sales Growth: 6.7% to 7.2% (up from 6% to 7%)
- Updated Comparable Sales Growth: 3.2% to 3.7% (up from 2.5% to 3.5%)
- Updated Operating Income Growth: 8.3% to 9.3% (up from 6.5% to 9%)
- Updated Diluted EPS Guidance: $28.70 to $29.00 (up from $28.36 to $28.80)
Capital Allocation:
Ulta Beauty has also increased its stock repurchase plan for fiscal 2026 to $1.8 billion from $1.5 billion, demonstrating a commitment to returning value to shareholders. As of August 1, 2026, $1.0 billion remains available under the current share repurchase program, which is expected to be utilized by the end of fiscal 2026.
Forward Catalyst:
Investors should watch for the continued impact of Ulta's strategic initiatives, particularly the integration of Space NK and the performance of new store openings. The upcoming quarters will be crucial in assessing how these factors contribute to sustained growth and profitability. Additionally, the company's ability to maintain or improve its gross margin amidst rising costs will be a key area of focus.
In summary, Ulta Beauty's second quarter results reflect a robust performance with significant growth in sales and earnings, alongside a positive outlook for the remainder of fiscal 2026. Shareholders can be optimistic about the company's strategic direction and its commitment to enhancing shareholder value through capital returns and growth initiatives.
Here are the extracted tables from the press release:
Exhibit 1: Ulta Beauty, Inc. Consolidated Statements of Income (In thousands, except per share data)
Note: All amounts are in thousands.
| 13 Weeks Ended | August 1, 2026 (Unaudited) | August 2, 2025 (Unaudited) |
|---|---|---|
| Net sales | $3,035,600 | $2,788,400 |
| Cost of sales | $1,848,700 | $1,696,700 |
| Gross profit | $1,186,900 | $1,091,600 |
| Selling, general and administrative expenses | $802,784 | $741,737 |
| Pre-opening expenses | $4,527 | $5,105 |
| Operating income | $379,641 | $344,854 |
| Interest expense (income), net | $3,684 | $-1,413 |
| Income before income taxes and equity net loss of affiliates | $375,957 | $346,267 |
| Income tax expense | $91,878 | $84,795 |
| Income before equity net loss of affiliates | $284,079 | $261,472 |
| Equity net loss of affiliates | $2,073 | $597 |
| Net income | $282,006 | $260,875 |
| Net income per common share: Basic | $6.57 | $5.80 |
| Net income per common share: Diluted | $6.55 | $5.78 |
| Weighted average common shares outstanding: Basic | 42,955 | 44,955 |
| Weighted average common shares outstanding: Diluted | 43,062 | 45,112 |
Exhibit 3: Ulta Beauty, Inc. Condensed Consolidated Balance Sheets (In thousands)
Note: All amounts are in thousands.
| August 1, 2026 | January 31, 2026 | August 2, 2025 | |
|---|---|---|---|
| Cash and cash equivalents | $158,451 | $424,243 | $242,745 |
| Short-term investments | $55,000 | $70,000 | $0 |
| Receivables, net | $249,295 | $296,217 | $224,412 |
| Merchandise inventories, net | $2,406,700 | $2,181,100 | $2,407,000 |
| Prepaid expenses and other current assets | $163,467 | $169,361 | $165,963 |
| Prepaid income taxes | $35,572 | $3,198 | $28,877 |
| Total current assets | $3,068,500 | $3,144,100 | $3,069,000 |
| Property and equipment, net | $1,414,200 | $1,434,000 | $1,332,500 |
| Operating lease assets | $1,877,900 | $1,813,000 | $1,682,100 |
| Goodwill | $223,146 | $226,421 | $392,606 |
| Other intangible assets, net | $200,200 | $203,288 | $5,466 |
| Deferred compensation plan assets | $56,828 | $53,391 | $50,550 |
| Other long-term assets | $123,035 | $124,912 | $98,324 |
| Total assets | $6,963,900 | $6,999,200 | $6,630,600 |
| Accounts payable | $646,200 | $685,887 | $708,655 |
| Accrued liabilities | $440,435 | $551,380 | $460,232 |
| Deferred revenue | $542,417 | $582,378 | $460,187 |
| Current operating lease liabilities | $312,648 | $306,671 | $282,593 |
| Accrued income taxes | $0 | $35,739 | $0 |
| Short-term debt | $339,578 | $62,287 | $289,101 |
| Total current liabilities | $2,281,200 | $2,224,300 | $2,200,700 |
| Non-current operating lease liabilities | $1,871,800 | $1,813,100 | $1,716,100 |
| Deferred income taxes | $99,404 | $98,766 | $49,158 |
| Other long-term liabilities | $67,722 | $59,632 | $60,729 |
| Total liabilities | $4,320,200 | $4,195,800 | $4,026,700 |
| Total stockholders' equity | $2,643,700 | $2,803,400 | $2,603,800 |
| Total liabilities and stockholders' equity | $6,963,900 | $6,999,200 | $6,630,600 |
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