Ulta Beauty Q1 Sales Rise 11.1% to $3.16 Billion, EPS Outlook Raised
ULTA•Ulta Beauty’s Q1 net sales climbed 11.1% year-over-year to $3.16 billion, driving net income of $340.4 million and diluted EPS of $7.74, up 15.5%. The company raised its FY26 EPS guidance to a range of $28.36–$28.80 while maintaining 6–7% sales growth outlook.
1. First-Quarter Financial Results
Ulta Beauty reported Q1 net sales of $3.16 billion, up 11.1% year-over-year, with comparable sales growth of 5.3%. Net income rose to $340.4 million from $305 million, and diluted EPS increased 15.5% to $7.74, while operating income grew 11.6% to $448.2 million.
2. Margin Expansion and Expense Trends
Gross profit expanded 13.8% to $1.26 billion, lifting gross margin to 40.1% from 39.1%, driven by reduced inventory shrink and improved merchandise margins. SG&A expenses rose 14.6% to $814.6 million, or 25.8% of sales, largely reflecting the Space NK acquisition and strategic enterprise investments.
3. Store Growth and Inventory Build
Merchandise inventories increased 12.5% to $2.38 billion in preparation for new brand launches and the Space NK integration. The chain added a net 16 US stores plus one international location, bringing the total to 1,521 US and 87 international company-operated stores.
4. Revised Fiscal 2026 Outlook
Ulta Beauty maintained its full-year net sales growth target of 6%–7% and comparable sales guidance of 2.5%–3.5%. Operating income growth range was narrowed to 6.5%–9%, and full-year diluted EPS guidance was raised to $28.36–$28.80 from $28.05–$28.55.
