Ulta Beauty, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 27 August 2026: press release. Guidance figures: 4 raised, 1 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 8.9% to $3.0 billion: Comparable sales rose 3.8% against 6.7% a year earlier. The company credited higher comparable sales, the Space NK acquisition and new stores. Source
• Operating income rose to $379.6 million: Operating income was $379.6 million against $344.9 million a year earlier, up 10.1%. Source
• Diluted EPS rose 13.3% to $6.55: Diluted EPS was $6.55 against $5.78. Basic EPS was $6.57, and diluted weighted shares fell to 43.1 million from 45.1 million. Source
• Gross margin eased on Space NK mix: Gross profit rose 8.7% to $1.2 billion, and gross margin was 39.1% against 39.2%. The company attributed the decline to the Space NK business mix. Source
• Short-term debt rose to $339.6 million: Short-term debt was $339.6 million, up from $62.3 million at January 31, 2026, used for working capital and capital allocation, including share repurchases. Source
• Six-month buybacks reached $791.1 million: The company repurchased 1.4 million shares at a cost of $791.1 million, excluding excise taxes, in the first six months of fiscal 2026. Source

“With our strong first-half performance, we have raised our financial guidance for the year, reflecting our confidence in our strategic priorities and our ability to drive profitable growth and long-term value for all stakeholders in a dynamic environment.”

Kecia Steelman, president and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: Fiscal 2026 ranges raised for net sales growth, comparable sales growth, operating income growth and diluted EPS. Source
• Guidance raised: Fiscal 2026 share repurchase plan raised to $1.8 billion from $1.5 billion. Source
• New guidance: Company expects to use the remaining $1.0 billion authorization by fiscal year-end; the prior release did not give this timing. Source

Sales and earnings growth

• Net sales rose 8.9% to $3.0 billion: Comparable sales rose 3.8% against 6.7% a year earlier. The company credited higher comparable sales, the Space NK acquisition and new stores. Source
• Operating income rose to $379.6 million: Operating income was $379.6 million against $344.9 million a year earlier, up 10.1%. Source
• Diluted EPS rose 13.3% to $6.55: Diluted EPS was $6.55 against $5.78. Basic EPS was $6.57, and diluted weighted shares fell to 43.1 million from 45.1 million. Source

Gross margin and operating costs

• Gross margin eased on Space NK mix: Gross profit rose 8.7% to $1.2 billion, and gross margin was 39.1% against 39.2%. The company attributed the decline to the Space NK business mix. Source
• Operating margin edged up: Operating income was 12.5% of net sales against 12.4%. Net income was $282.0 million against $260.9 million, up 8.1%. Source
• SG&A grew 8.2%, mainly Space NK: SG&A rose to $802.8 million and fell to 26.4% of net sales from 26.6%. Pre-opening expenses were $4.5 million against $5.1 million. Source

“We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience.”

Kecia Steelman, president and chief executive officer

Store openings and international footprint

• 15 stores opened, one closed: Fifteen stores opened, 14 in the U.S. and one international, and one U.S. store closed, for 14 net. Three stores were relocated and seven remodeled. Source
• Store base reached 1,622: Stores totaled 1,534 in the U.S. and 88 international, with gross square footage of 16.1 million at quarter end. Source
• Space NK and franchise expansion: International presence includes the Space NK subsidiary in the U.K. and Ireland, a joint venture in Mexico and a franchise in the Middle East. Source

Category mix of net sales

• Cosmetics share fell to 37%: Cosmetics was 37% of net sales against 38% a year earlier. For the six months, cosmetics was 38% against 39%. Source
• Haircare and fragrance gained share: Haircare was 20% against 19% and fragrance 13% against 12% in the quarter. For the six months, fragrance was 13% against 11%. Source
• Skincare and wellness share eased: Skincare and wellness was 24% against 25%. Services and other were 4% and 2%, both unchanged from the prior year. Source

Inventory, cash and short-term debt

• Inventory flat at $2.4 billion: Inventory was flat year over year, which the company attributed to better inventory management, partly offset by inventory for new brand launches and new stores. Source
• Cash balance lower at quarter end: Cash and cash equivalents were $158.5 million, down from $424.2 million at January 31, 2026. Short-term investments were $55.0 million. Source
• Short-term debt rose to $339.6 million: Short-term debt was $339.6 million, up from $62.3 million at January 31, 2026, used for working capital and capital allocation, including share repurchases. Source

Capital spending and share repurchases

• Capex of $139.5 million in six months: Capital expenditures for the first six months were $139.5 million, against $156.0 million a year earlier, for new stores, relocations, remodels and information technology. Source
• Six-month buybacks reached $791.1 million: The company repurchased 1.4 million shares at a cost of $791.1 million, excluding excise taxes, in the first six months of fiscal 2026. Source
• $1.0 billion of authorization remains: Of the $3.0 billion program announced in October 2024, $1.0 billion was still available at the end of the quarter. Source

Figures management reported

Risks management discussed

• Operational: Gross margin pressure tied to the Space NK business mix, as the company described it. Source
• External: Management referred to the company operating in a dynamic environment. Source

Other quarters

• Q1 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.