01—Abstract
Summary
Summary of the 10-Q filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Ulta Beauty, Inc. reported net sales of $3,035,676 thousanda ($3.0 billion) for the 13 weeks ended August 1, 2026, up from $2,788,469 thousand, with net income of $282,006 thousand compared to $260,875 thousand in the prior-year quarter.
Diluted earnings per share were $6.55b versus $5.78. For the 26 weeks ended August 1, 2026, net sales were $6,199,533 thousand ($6.2 billion) and net income was $622,475 thousand, with diluted EPS of $14.31 versus $12.49. Comparable sales rose 3.8% in the quarter and 4.6% for the first half, driven primarily by a 3.9% increase in average ticket in the quarter.
Gross margin was 39.1% in the quarter, slightly below 39.2% a year earlier, while the six-month gross margin improved to 39.6% from 39.1%, which the filing attributes to lower inventory shrink and higher merchandise margin. The company repurchased 1,438,761 shares for $798.6 millionc in the first half of fiscal 2026 under its $3.0 billion October 2024 program, leaving $1.0 billion available as of August 1, 2026. Short-term debt rose to $339.6 million from $62.3 million at January 31, 2026, and cash and cash equivalents plus short-term investments totaled $213.5 million.
Operating cash flow was $381,590 thousandd for the 26 weeks, against $316,543 thousand a year earlier, while capital expenditures were $139.5 million. The filing notes that the lower effective tax rate of 24.2% for the first half reflects the purchase of transferable federal tax credits at a negotiated discount.
At August 1, 2026, the company operated 1,622 stores, including 1,534 Ulta Beauty stores in the U.S. and 88 Space NK stores in the U.K. and Ireland. The company stated it was in compliance with all terms and covenants of its Loan Agreement and Facility Agreement, and it reported no material changes to risk factors from its fiscal 2025 Form 10-K.
02—Key points
Key Highlights
- Net sales rose to $3,035,676 thousand in the quarter, up from $2,788,469 thousand, with the filing citing higher comparable sales, the Space NK acquisition, and new stores.
- Comparable sales increased 3.8% in the quarter and 4.6% for the first 26 weeks of fiscal 2026.
- Diluted EPS was $6.55 for the quarter versus $5.78, and $14.31 for the first half versus $12.49.
- Gross profit as a percentage of net sales was 39.1% in the quarter, down from 39.2%, and 39.6% for the half, up from 39.1%.
- The company repurchased $798.6 million of common stock in the first half, leaving $1.0 billion available under its $3.0 billion program.
- Short-term debt increased to $339.6 million from $62.3 million at January 31, 2026, primarily to support working capital and capital allocation.
- The first-half effective tax rate of 24.2% was lowered by the purchase of transferable federal tax credits at a negotiated discount.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2027, Ulta Beauty kept $0.09.
- Revenue$3.04B100.0%
- Cost of revenue−$1.85B60.9%
- Gross profit$1.19B39.1%
- Operating costs−$807.3M26.6%
- Operating income$379.6M12.5%
- Interest, other & tax−$97.6M3.2%
- Net income$282.0M9.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2027filed August 27, 2026Financial Statements
Q2 FY2027 against Q2 FY2026
| Line item | Q2 FY2027Q2 FY2026 | Change |
|---|---|---|
| Revenue | $3.04B$2.79B | +8.9% |
| Cost of Revenue | $1.85B$1.70B | +9.0% |
| Gross Profit | $1.19B$1.09B | +8.7% |
| SG&A Expenses | $802.78M$741.74M | +8.2% |
| Operating Income | $379.64M$344.85M | +10.1% |
| Net Income | $282.01M$260.88M | +8.1% |
| EPS (Basic) | $6.57$5.80 | +13.3% |
| EPS (Diluted) | $6.55$5.78 | +13.3% |
| Shares Outstanding (Basic) | 42.95M44.95M | −4.4% |
| Shares Outstanding (Diluted) | 43.06M45.11M | −4.5% |
05—Questions
Frequently Asked Questions
How did Ulta Beauty perform in the second quarter of fiscal 2026?
Net sales were $3,035,676 thousand, compared with $2,788,469 thousand a year earlier, and net income was $282,006 thousand versus $260,875 thousand. The filing attributes the sales increase primarily to higher comparable sales, the Space NK acquisition, and new stores.
Did margins change?
Gross margin was 39.1% in the quarter, slightly below 39.2% a year earlier, which the filing ties to the Space NK business mix. SG&A as a percentage of net sales fell to 26.4% from 26.6%, mainly due to lower incentive compensation. For the first half, gross margin rose to 39.6% from 39.1%, driven by lower inventory shrink and higher merchandise margin.
How much capital did the company return to shareholders?
In the first 26 weeks, the company repurchased 1,438,761 shares at a total cost of $798.6 million, including excise tax. As of August 1, 2026, $1.0 billion remained under the October 2024 share repurchase program.
How is the company funding its operations and buybacks?
Outstanding borrowings under the credit facilities were $339.6 million at August 1, 2026, up from $62.3 million at January 31, 2026. Operating cash flow was $381,590 thousand for the first 26 weeks, and the company stated it was in compliance with its loan and facility covenants.
Why was the first-half tax rate lower?
The effective tax rate was 24.2% for the 26 weeks, compared with 24.5% a year earlier. The filing states this is primarily due to purchased transferable federal tax credits, which were bought at a negotiated discount and produced an income tax benefit in the period.
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