01—Abstract
Summary
Summary of the 10-Q filed June 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Ulta Beauty, Inc. reported net sales of $3,163,857 thousanda ($3.2 billion) for the 13 weeks ended May 2, 2026, up from $2,848,367 thousand for the 13 weeks ended May 3, 2025, with the filing attributing the increase primarily to higher comparable sales, the acquisition of Space NK, and new stores.
Comparable sales rose 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions. Gross profit rose to $1,267,620 thousandb, and gross margin improved to 40.1% from 39.1%, which the company attributed to lower inventory shrink and higher merchandise margin. Net income was $340,469 thousand, compared with $305,052 thousand a year earlier, and diluted EPS was $7.74 versus $6.70.
SG&A expenses rose to $814,699 thousandc, or 25.8% of net sales versus 24.9%, mainly reflecting the Space NK acquisition and corporate overhead deleverage from strategic enterprise investments. The effective tax rate fell to 23.9% from 24.6%, primarily due to the purchase of transferable federal tax credits at a negotiated discount. Operating cash flow was $261,894 thousand, versus $220,021 thousand a year earlier, while the company repurchased 958,323 shares for $560.3 million under its October 2024 program, leaving $1.3 billion available.
Cash and cash equivalents fell to $166.3 milliond, and borrowings under credit facilities rose to $144.9 million from $62.3 million at January 31, 2026. The filing reports 1,608 stores at quarter-end, including 19 openings in the quarter, and total inventories of $2.39 billion, up from $2.18 billion at fiscal year-end. Management stated there were no material changes to risk factors from the Form 10-K for the year ended January 31, 2026, and concluded disclosure controls were effective.
02—Key points
Key Highlights
- Net sales increased to $3,163,857 thousand from $2,848,367 thousand, with comparable sales up 5.3%.
- Gross margin expanded to 40.1% from 39.1%, driven by lower inventory shrink and higher merchandise margin.
- SG&A expenses rose to $814,699 thousand, or 25.8% of net sales, up from 24.9%, largely due to the Space NK acquisition.
- Net income was $340,469 thousand, up from $305,052 thousand; diluted EPS was $7.74 versus $6.70.
- Effective tax rate declined to 23.9% from 24.6%, reflecting the purchase of transferable federal tax credits at a discount.
- The company repurchased $560.3 million of common stock (958,323 shares) and had $1.3 billion remaining under its October 2024 program.
- Borrowings under credit facilities increased to $144.9 million, while cash and cash equivalents decreased to $166.3 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, Ulta Beauty kept $0.11.
- Revenue$3.16B100.0%
- Cost of revenue−$1.90B59.9%
- Gross profit$1.27B40.1%
- Operating costs−$819.4M25.9%
- Operating income$448.3M14.2%
- Interest, other & tax−$107.8M3.4%
- Net income$340.5M10.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed June 2, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $3.16B$2.85B | +11.1% |
| Cost of Revenue | $1.90B$1.73B | +9.3% |
| Gross Profit | $1.27B$1.11B | +13.8% |
| SG&A Expenses | $814.70M$710.61M | +14.6% |
| Operating Income | $448.26M$401.78M | +11.6% |
| Net Income | $340.47M$305.05M | +11.6% |
| EPS (Basic) | $7.78$6.72 | +15.8% |
| EPS (Diluted) | $7.74$6.70 | +15.5% |
| Shares Outstanding (Basic) | 43.78M45.36M | −3.5% |
| Shares Outstanding (Diluted) | 43.96M45.51M | −3.4% |
05—Questions
Frequently Asked Questions
What drove the increase in net sales this quarter?
The filing attributes the $315.5 million increase in net sales primarily to higher comparable sales, the acquisition of Space NK, and sales from new stores. Comparable sales rose 5.3%, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions.
Why did the effective tax rate decline?
The effective tax rate was 23.9% compared with 24.6% a year earlier, primarily due to the purchase of transferable federal tax credits. The credits were bought at a negotiated discount, which resulted in an income tax benefit recorded during the quarter.
How did the company use cash and fund its operations this quarter?
Operating activities provided $261,894 thousand. The company used $545,304 thousand to repurchase common shares and $58,276 thousand for capital expenditures. Short-term debt borrowings were $115,580 thousand against payments of $32,252 thousand, and cash and cash equivalents ended at $166,300 thousand.
What is the company's remaining share repurchase capacity?
The company may repurchase up to $3.0 billion of common stock under its October 2024 program, and $1.3 billion remained available as of May 2, 2026. The program has no expiration date and may be suspended or discontinued at any time.
Were there any changes to risk factors or internal controls?
Management stated there have been no material changes from the risk factors in the Form 10-K for the year ended January 31, 2026. The CEO and CFO concluded disclosure controls and procedures were effective, and there were no changes in internal control over financial reporting during the quarter that materially affected it.
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