What drove the increase in Ulta's first-quarter sales?

Net sales increased 11.1% to $3.16 billion, primarily due to increased 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.

Did Ulta change its fiscal 2026 guidance?

Partially. The company raised its operating income growth outlook to 6.5% to 9% from 6% to 9%, and its diluted EPS outlook to $28.36 to $28.80 from $28.05 to $28.55. Net sales growth (6% to 7%), comparable sales growth (2.5% to 3.5%), and capital expenditures ($400 million to $450 million) were left unchanged.

How much did Ulta spend on share repurchases, and how much authorization remains?

During the first quarter, Ulta repurchased 958,323 shares at a cost of $555.0 million. As of May 2, 2026, $1.3 billion remained available under the $3.0 billion share repurchase program announced in October 2024.

Why did cash and cash equivalents decline, and what is the balance sheet position?

Cash and cash equivalents fell to $166.3 million at May 2, 2026, from $424.2 million at January 31, 2026. The decline reflects $471.4 million of net cash used in financing activities, including $545.3 million of share repurchases, and $48.2 million used in investing activities, partially offset by $261.9 million of operating cash flow. Short-term debt was $144.9 million, and merchandise inventories rose 12.5% to $2.4 billion.

What drove the improvement in gross margin and what pressured SG&A?

Gross profit margin rose to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. SG&A expenses increased 14.6% to $814.7 million, primarily due to the Space NK acquisition, and rose to 25.8% of net sales from 24.9%, mainly due to deleverage of corporate overhead from strategic enterprise investments and store expenses, partially offset by leverage of advertising expenses.

ULTA 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed June 2, 2026. Cited figures are marked; the original filing is the authoritative source.

Ulta Beauty, Inc. (NASDAQ: ULTA) reported consolidated financial results for the first quarter of fiscal 2026, the thirteen-week period ended May 2, 2026, compared with the thirteen weeks ended May 3, 2025, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Net sales rose 11.1% to $3.16 billion^a, driven by higher comparable sales (up 5.3%, reflecting a 3.7% increase in average ticket and a 1.6% increase in transactions), the acquisition of Space NK, and new stores. Gross profit increased 13.8% to $1.27 billion, and gross margin expanded to 40.1% from 39.1%, which the company attributed mainly to lower inventory shrink and higher merchandise margin. Operating income grew 11.6% to $448.3 million, and diluted EPS increased 15.5% to $7.74.

The company returned $555.0 million^b to shareholders through share repurchases, repurchasing 958,323 shares, and $1.3 billion remained available under its $3.0 billion repurchase program announced in October 2024. Merchandise inventories rose 12.5% to $2.4 billion, and cash and cash equivalents declined to $166.3 million at quarter end from $424.2 million at fiscal year-end January 31, 2026. Short-term debt was $144.9 million.

For fiscal 2026, Ulta updated its outlook: operating income growth is now expected to be 6.5% to 9% (previously 6% to 9%), and diluted EPS is now expected to be $28.36 to $28.80^c (previously $28.05 to $28.55). Net sales growth of 6% to 7%, comparable sales growth of 2.5% to 3.5%, and capital expenditures of $400 million to $450 million were unchanged.

02—Key points

Key Highlights

Net sales increased 11.1% to $3.16 billion in Q1 fiscal 2026, with comparable sales up 5.3%.
Gross margin expanded to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin.
Operating income rose 11.6% to $448.3 million; diluted EPS increased 15.5% to $7.74.
SG&A expenses rose 14.6% to $814.7 million, mainly due to the Space NK acquisition; SG&A as a percentage of net sales increased to 25.8% from 24.9%.
Returned $555.0 million to shareholders via share repurchases of 958,323 shares; $1.3 billion remains under the $3.0 billion program.
Fiscal 2026 operating income growth outlook raised to 6.5% to 9% from 6% to 9%; diluted EPS outlook raised to $28.36 to $28.80 from $28.05 to $28.55.
Store count reached 1,521 U.S. stores and 87 international company-operated stores as of May 2, 2026, after a net addition of 16 U.S. and 1 international store in the quarter.

03—Questions

Frequently Asked Questions

What drove the increase in Ulta's first-quarter sales?
Net sales increased 11.1% to $3.16 billion, primarily due to increased 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.
Did Ulta change its fiscal 2026 guidance?
Partially. The company raised its operating income growth outlook to 6.5% to 9% from 6% to 9%, and its diluted EPS outlook to $28.36 to $28.80 from $28.05 to $28.55. Net sales growth (6% to 7%), comparable sales growth (2.5% to 3.5%), and capital expenditures ($400 million to $450 million) were left unchanged.
How much did Ulta spend on share repurchases, and how much authorization remains?
During the first quarter, Ulta repurchased 958,323 shares at a cost of $555.0 million. As of May 2, 2026, $1.3 billion remained available under the $3.0 billion share repurchase program announced in October 2024.
Why did cash and cash equivalents decline, and what is the balance sheet position?
Cash and cash equivalents fell to $166.3 million at May 2, 2026, from $424.2 million at January 31, 2026. The decline reflects $471.4 million of net cash used in financing activities, including $545.3 million of share repurchases, and $48.2 million used in investing activities, partially offset by $261.9 million of operating cash flow. Short-term debt was $144.9 million, and merchandise inventories rose 12.5% to $2.4 billion.
What drove the improvement in gross margin and what pressured SG&A?
Gross profit margin rose to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. SG&A expenses increased 14.6% to $814.7 million, primarily due to the Space NK acquisition, and rose to 25.8% of net sales from 24.9%, mainly due to deleverage of corporate overhead from strategic enterprise investments and store expenses, partially offset by leverage of advertising expenses.

04—Continue

← View all 8-K filings