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Ulta Beauty Exceeds Q1 Expectations, Raises Full-Year Earnings Outlook

Ulta Beauty reported strong fiscal first-quarter results, beating analyst expectations for earnings and revenue. The retailer also raised its full-year earnings per share outlook for 2026.

An Ulta Beauty store in Colma, California, US, on Wednesday, Dec. 3, 2025.
An Ulta Beauty store in Colma, California, US, on Wednesday, Dec. 3, 2025.

Market impact

Ulta Beauty's strong Q1 performance and raised earnings outlook signal resilience in the beauty retail sector despite broader consumer spending concerns.

Why it matters: The results demonstrate the beauty retail sector's ability to perform strongly even as consumer confidence wanes due to elevated gas prices and persistent inflation, offering insights into discretionary spending patterns.

Key numbers

  • Q1 EPS: $7.74
  • Q1 Revenue: $3.16 billion
  • Net sales increase: 11%
  • Comparable sales increase: 5.3%
  • Full-year EPS guidance: $28.36-$28.80
  • Shares rose: 7%

Watch next

  • Consumer discretionary spending
  • Inflation trends
  • Gas prices
Retail Beauty & Personal Care Ulta Beauty Consumers Wall Street analysts

Ulta Beauty reported robust financial results for its fiscal first quarter of 2026, surpassing Wall Street expectations for both earnings and revenue. The beauty retailer also increased its full-year earnings per share outlook, signaling a strong start to its fiscal year. Following the announcement, the company's shares saw a notable rise, climbing as much as 7% in extended trading.

For the three-month period concluding on May 2, Ulta Beauty recorded earnings per share of $7.74, outperforming the $6.86 per share anticipated by analysts in a survey conducted by LSEG. Revenue for the quarter reached $3.16 billion, exceeding the $3.10 billion expected by Wall Street.

The company also reported a 5.3% rise in comparable sales, which surpassed StreetAccount estimates of a 4.6% increase. Net sales for the period increased by approximately 11% compared to the same quarter in the previous year, driven by broad-based growth across all channels and major categories.

Looking ahead, Ulta Beauty reaffirmed its full-year projections for same-store sales and total revenue. However, it revised its full-year earnings per share guidance upward, now expecting between $28.36 and $28.80. This is an increase from its prior outlook, which ranged from $28.05 to $28.55 per share.

CEO Kecia Steelman commented on the results, stating, "Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories." Steelman further added that the results "demonstrate the strengths of our model, focused execution of our talented associates and the effectiveness of our strategy in an uncertain macroeconomic landscape."

These strong earnings emerge at a time when consumer confidence has reportedly softened. Factors such as elevated gas prices and persistent inflation have led to a general reduction in discretionary spending across the economy. Despite this challenging backdrop, Ulta Beauty's performance indicates resilience within the beauty retail sector.