01—Abstract
Summary
Summary of the 8-K filed March 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Ulta Beauty, Inc. (NASDAQ: ULTA) reported consolidated results for its fourth quarter and fiscal year ended January 31, 2026, in a press release furnished as Exhibit 99.1 to this Form 8-K.
Net sales rose 11.8% to $3.90 billiona in the quarter and 9.7% to $12.39 billion for the fiscal year, with comparable sales up 5.8% and 5.4%, respectively. The increases were attributed to higher comparable sales, the acquisition of Space NK, and new stores. Diluted EPS was $8.01 for the quarter (versus $8.46 a year earlier) and $25.64 for the fiscal year (up 1.2% from $25.34).
Operating margin compressed in the quarter to 12.2% from 14.8%, as SG&A expenses rose 23.0% to $1.0 billionb, driven by corporate overhead tied to strategic enterprise investments, higher advertising and higher incentive compensation. For fiscal 2026, the company guided to net sales growth of 6% to 7%, comparable sales growth of 2.5% to 3.5%, operating income growth of 6% to 9%, diluted EPS of $28.05 to $28.55, and capital expenditures of $400 million to $450 million. During fiscal 2025 Ulta repurchased 2.0 million shares for $890.5 million, leaving $1.8 billion available under its $3.0 billion program announced in October 2024.
Year-end cash was $424.2 millionc, and merchandise inventories rose 10.8% to $2.2 billion. Management said the company is well positioned for sustainable, profitable growth in 2026 and beyond.
02—Key points
Key Highlights
- Q4 net sales increased 11.8% to $3.90 billion; comparable sales rose 5.8%, driven by a 4.2% increase in average ticket and a 1.6% increase in transactions.
- Fiscal year net sales increased 9.7% to $12.39 billion; comparable sales rose 5.4%, with gross margin expanding to 39.1% from 38.8%.
- Q4 operating income was $476.9 million (12.2% of net sales) versus 14.8% a year earlier, as SG&A expenses rose 23.0% to $1.0 billion.
- Diluted EPS was $8.01 for the quarter and $25.64 for the fiscal year, compared with $8.46 and $25.34 in the prior-year periods.
- Fiscal 2026 guidance calls for net sales growth of 6% to 7%, comparable sales growth of 2.5% to 3.5%, and diluted EPS of $28.05 to $28.55.
- Ulta returned $890.5 million to shareholders via share repurchases in fiscal 2025, with $1.8 billion remaining under its $3.0 billion program.
- Acquisition of Space NK contributed to sales growth; fiscal 2025 capital expenditures were $434.8 million.
03—Questions
Frequently Asked Questions
What drove the decline in operating margin in the fourth quarter?
Operating income was 12.2% of net sales versus 14.8% a year earlier. The filing attributes the higher SG&A ratio, which rose to 25.7% from 23.4%, to higher corporate overhead from strategic enterprise investments, higher advertising expenses, and higher incentive compensation.
What is Ulta's fiscal 2026 outlook?
The company expects net sales growth of 6% to 7%, comparable sales growth of 2.5% to 3.5%, operating income growth of 6% to 9%, diluted EPS of $28.05 to $28.55, and capital expenditures of $400 million to $450 million.
How much did Ulta spend on share repurchases?
During fiscal 2025, Ulta repurchased 2.0 million shares at a cost of $890.5 million, excluding excise taxes. As of January 31, 2026, $1.8 billion remained available under the $3.0 billion repurchase program announced in October 2024.
What drove sales growth in the quarter and fiscal year?
The filing attributes net sales growth to increased comparable sales, the acquisition of Space NK, and sales from new stores. Comparable sales growth in the quarter reflected a 4.2% increase in average ticket and a 1.6% increase in transactions.
How did inventory and cash change over the fiscal year?
Merchandise inventories, net increased 10.8% to $2.2 billion, primarily for new brand launches, the Space NK acquisition and 60 net new Ulta Beauty stores. Cash and cash equivalents ended the year at $424.2 million, down from $703.2 million.
04—Continue