How did Ulta Beauty perform in the second quarter of fiscal 2026?

Net sales increased 8.9% to $3,035.7 million, comparable sales rose 3.8%, operating income increased 10.1% to $379.6 million, and diluted EPS increased 13.3% to $6.55.

What changed in Ulta's fiscal 2026 outlook?

The company raised its outlook: net sales growth is now 6.7% to 7.2% (previously 6% to 7%), comparable sales growth 3.2% to 3.7% (previously 2.5% to 3.5%), operating income growth 8.3% to 9.3% (previously 6.5% to 9%), and diluted EPS $28.70 to $29.00 (previously $28.36 to $28.80). Capital expenditure guidance was unchanged.

How is Ulta returning capital to shareholders?

The company increased its fiscal 2026 share repurchase plan to $1.8 billion from $1.5 billion. Through the first six months it repurchased 1.4 million shares for $791.1 million, excluding excise taxes, and expects to use the remaining $1.0 billion of its $3.0 billion authorization by the end of fiscal 2026.

What drove the sales and margin results?

Sales growth was primarily due to higher comparable sales, the acquisition of Space NK, and new stores. Gross margin declined slightly to 39.1% from 39.2%, primarily due to Space NK business mix, while SG&A expenses increased mainly because of the Space NK acquisition.

What was the company's balance sheet position at quarter end?

Cash and cash equivalents were $158.5 million, short-term investments were $55.0 million, and short-term debt was $339.6 million, which the company said supports working capital needs and capital allocation priorities including share repurchases. Merchandise inventories were $2.4 billion, flat compared to the prior year.

ULTA 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.

Ulta Beauty, Inc. (NASDAQ: ULTA) reported consolidated results for the thirteen-week second quarter of fiscal 2026 ended August 1, 2026, and raised its fiscal 2026 guidance.

Net sales increased 8.9% to $3.0 billion^a ($3,035.7 million), driven by higher comparable sales, the acquisition of Space NK, and new stores. Comparable sales increased 3.8%, operating income increased 10.1% to $379.6 million, and diluted earnings per share increased 13.3% to $6.55, compared with $5.78 in the prior-year quarter. Gross margin was 39.1% versus 39.2%, reflecting Space NK business mix, while SG&A rose 8.2% to $802.8 million, primarily due to the Space NK acquisition.

For the first half of fiscal 2026, net sales were $6.20 billion^b and diluted EPS was $14.31, compared with $12.49 a year earlier. The company increased its fiscal 2026 outlook: net sales growth is now expected at 6.7% to 7.2% (previously 6% to 7%), comparable sales growth at 3.2% to 3.7% (previously 2.5% to 3.5%), operating income growth at 8.3% to 9.3% (previously 6.5% to 9%), and diluted EPS of $28.70 to $29.00 (previously $28.36 to $28.80). Capital expenditure guidance is unchanged at $400 million to $450 million.

Capital deployment remains a focus. Fiscal 2026 share repurchases were increased to $1.8 billion^c from $1.5 billion.

Year to date, the company repurchased 1.4 million shares for $791.1 million^d, leaving $1.0 billion under the $3.0 billion program announced in October 2024, which it now expects to use by the end of fiscal 2026. Cash and equivalents were $158.5 million and short-term debt was $339.6 million at quarter end, with merchandise inventories of $2.4 billion, flat year over year.

02—Key points

Key Highlights

Q2 fiscal 2026 net sales rose 8.9% to $3.0 billion; comparable sales increased 3.8%.
Operating income grew 10.1% to $379.6 million; operating margin was 12.5% versus 12.4%.
Diluted EPS increased 13.3% to $6.55 from $5.78.
Fiscal 2026 guidance raised: diluted EPS now $28.70 to $29.00 (prior $28.36 to $28.80); comparable sales growth now 3.2% to 3.7%.
Fiscal 2026 share repurchase plan increased to $1.8 billion from $1.5 billion; $1.0 billion of the $3.0 billion program remains and is expected to be used by fiscal year-end.
Gross margin slipped to 39.1% from 39.2%, attributed to Space NK business mix; SG&A rose 8.2%, primarily from the Space NK acquisition.
Cash of $158.5 million and short-term debt of $339.6 million at quarter end; capital expenditure guidance unchanged at $400 million to $450 million.

03—Questions

Frequently Asked Questions

How did Ulta Beauty perform in the second quarter of fiscal 2026?
Net sales increased 8.9% to $3,035.7 million, comparable sales rose 3.8%, operating income increased 10.1% to $379.6 million, and diluted EPS increased 13.3% to $6.55.
What changed in Ulta's fiscal 2026 outlook?
The company raised its outlook: net sales growth is now 6.7% to 7.2% (previously 6% to 7%), comparable sales growth 3.2% to 3.7% (previously 2.5% to 3.5%), operating income growth 8.3% to 9.3% (previously 6.5% to 9%), and diluted EPS $28.70 to $29.00 (previously $28.36 to $28.80). Capital expenditure guidance was unchanged.
How is Ulta returning capital to shareholders?
The company increased its fiscal 2026 share repurchase plan to $1.8 billion from $1.5 billion. Through the first six months it repurchased 1.4 million shares for $791.1 million, excluding excise taxes, and expects to use the remaining $1.0 billion of its $3.0 billion authorization by the end of fiscal 2026.
What drove the sales and margin results?
Sales growth was primarily due to higher comparable sales, the acquisition of Space NK, and new stores. Gross margin declined slightly to 39.1% from 39.2%, primarily due to Space NK business mix, while SG&A expenses increased mainly because of the Space NK acquisition.
What was the company's balance sheet position at quarter end?
Cash and cash equivalents were $158.5 million, short-term investments were $55.0 million, and short-term debt was $339.6 million, which the company said supports working capital needs and capital allocation priorities including share repurchases. Merchandise inventories were $2.4 billion, flat compared to the prior year.

04—Continue

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