Ulta Beauty, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 2 June 2026: press release. Guidance figures: 2 raised, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales up 11.1% on three drivers: Net sales reached $3.2 billion, with growth attributed to comparable sales, the Space NK acquisition and new stores. Source
• Comparable sales up 5.3%: Comparable sales rose 5.3% against 2.9% a year earlier, driven by a 3.7% higher average ticket and a 1.6% higher transaction count. Source
• Operating income up 11.6%: Operating income reached $448.3 million, or 14.2% of net sales, compared with 14.1% a year earlier. Source
• Diluted EPS up 15.5%: Diluted EPS was $7.74 against $6.70 a year earlier. Source
• Gross margin up to 40.1%: Gross profit rose 13.8% to $1.3 billion, or 40.1% of net sales against 39.1%, on lower inventory shrink and higher merchandise margin. Source
• Share repurchases of $555.0 million: The company repurchased 958,323 shares of common stock for $555.0 million in the first quarter. Source
• Operating income guidance low end raised: Operating income growth guidance moved to 6.5% to 9% from 6% to 9%. Source

“driven by broad-based growth across all channels and major categories”

Kecia Steelman, president and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: Operating income growth guidance raised at its low end, to 6.5% to 9% from 6% to 9%. Source
• Guidance raised: Diluted EPS guidance raised to $28.36 to $28.80 from $28.05 to $28.55. Source
• Guidance kept: Net sales growth, comparable sales growth and capital expenditure guidance were not changed. Source

Results and growth drivers

• Net sales up 11.1% on three drivers: Net sales reached $3.2 billion, with growth attributed to comparable sales, the Space NK acquisition and new stores. Source
• Comparable sales up 5.3%: Comparable sales rose 5.3% against 2.9% a year earlier, driven by a 3.7% higher average ticket and a 1.6% higher transaction count. Source
• Operating income up 11.6%: Operating income reached $448.3 million, or 14.2% of net sales, compared with 14.1% a year earlier. Source
• Diluted EPS up 15.5%: Diluted EPS was $7.74 against $6.70 a year earlier. Source

Categories and customers

• Fragrance share up, skincare share down: Fragrance rose to 12% of net sales from 11%, while skincare and wellness fell to 24% from 25% of net sales. Source
• Other categories held steady: Cosmetics was 40%, haircare 18%, services 4% and other 2% of net sales, unchanged from a year earlier. Source

“I am particularly proud of our teams’ commitment to delighting our guests while also advancing our longer-term strategic initiatives with discipline”

Kecia Steelman, president and chief executive officer

Stores and regions

• International reach through subsidiary and partners: Space NK, a luxury beauty retailer in the U.K. and Ireland, is a subsidiary; the company also has a joint venture in Mexico and a franchise in the Middle East. Source
• Store openings, closings and count: Opened 18 U.S. and 1 international stores, closed 2 U.S. stores, and relocated 1 U.S. and 1 international store. Stores totaled 1,521 U.S. and 87 international at May 2, 2026. Source

Gross margin and SG&A

• Gross margin up to 40.1%: Gross profit rose 13.8% to $1.3 billion, or 40.1% of net sales against 39.1%, on lower inventory shrink and higher merchandise margin. Source
• SG&A up 14.6% with Space NK: SG&A rose 14.6% to $814.7 million, primarily from the Space NK acquisition, and rose to 25.8% of net sales from 24.9%. Source
• SG&A deleverage from corporate overhead: Higher SG&A as a share of sales reflected corporate overhead deleverage from strategic enterprise investments and store expenses, partly offset by advertising leverage. Source

“Looking ahead, we remain focused on delivering long-term shareholder value”

Kecia Steelman, president and chief executive officer

Inventory and cash

• Inventory up 12.5% on launches and stores: Merchandise inventories rose 12.5% to $2.4 billion, mainly for new brand launches, Space NK, key category investments and 70 net new Ulta Beauty stores since May 3, 2025. Source
• Cash, investments and short-term debt: Cash and equivalents were $166.3 million, short-term investments $55.0 million and short-term debt $144.9 million at the end of the quarter. Source

Capital and shareholder returns

• Share repurchases of $555.0 million: The company repurchased 958,323 shares of common stock for $555.0 million in the first quarter. Source
• $1.3 billion of repurchase authority left: $1.3 billion remained under the $3.0 billion share repurchase program announced in October 2024. Source
• Capital expenditures of $58.3 million: Capital expenditures were $58.3 million, mainly for new and existing stores, compared with $79.0 million a year earlier per the cash flow statement. Source

Fiscal 2026 guidance

• Operating income guidance low end raised: Operating income growth guidance moved to 6.5% to 9% from 6% to 9%. Source
• Net sales, comps and capex guidance kept: 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. Source

Figures management reported

Risks management discussed

• External: Management cited an uncertain macroeconomic landscape as the setting in which the quarter's results were achieved. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.