Ulta Beauty Drops 8% After Q4 Profit Miss and Weak EPS Guidance
Ulta Beauty reported fourth-quarter net sales of $3.9 billion, up 12% year-over-year, and comparable-store sales growth of 5.8%, both exceeding analyst estimates. The company forecast full-year 2026 net sales of $13.14–13.27 billion and EPS of $28.05–$28.55, below analyst expectations, sending shares down 8%.
1. Q4 Financial Results
Ulta Beauty posted net sales of $3.9 billion in the fourth quarter, a 12% increase from last year, and delivered a 5.8% rise in comparable-store sales, driven by the Beauty Unleashed initiative and the Space NK acquisition.
2. 2026 Outlook
For fiscal 2026, Ulta expects net sales of $13.14 billion to $13.27 billion (6%–7% growth) and comparable-store sales growth of 2.5%–3.5%, while guiding EPS of $28.05 to $28.55, below analyst expectations.
3. Margin and Growth Considerations
Investors are focused on margin pressures from recent acquisitions and loyalty program investments as the company seeks to convert strong sales momentum into sustainable earnings as rising operating costs challenge profitability.