Ulta Beauty has raised its full-year sales and earnings guidance on Thursday, August 27, after delivering stronger-than-expected second-quarter results, underscoring the resilience of the U.S. beauty market despite persistent economic uncertainty.
For the second quarter of fiscal 2026, ended August 1, the U.S. beauty retailer reported net sales of US$3.04 billion, up 8.9% year on year, while comparable sales increased 3.8%, outperforming market expectations.
The performance was driven by stronger comparable-store sales, the contribution of acquired British beauty retailer Space NK, and continued store expansion, with 13 new stores opened during the quarter.
Fragrance remains a key growth engine
CEO Kecia Steelman attributed the results to the company’s ongoing investments in marketing, product innovation, and customer engagement. She highlighted broad-based consumer spending across demographic groups, with prestige beauty — and fragrance in particular — continuing to attract shoppers despite inflationary pressures.
Ulta also pointed to the growing importance of its exclusive brand portfolio, which now accounts for nearly half of total sales. Exclusive celebrity-led launches and expanded digital initiatives, including its presence on TikTok Shop, have helped strengthen engagement with younger consumers, particularly Gen Z.
The retailer noted that prestige beauty sales benefited from a balanced mix of traffic growth and higher average spending, supported by product innovation and an increasingly omnichannel shopping experience.
Stronger outlook for 2026
Following the stronger second quarter, Ulta increased its full-year guidance.
The company now expects net sales growth of 6.7% to 7.2% (previously 6.0% to 7.0%), and comparable sales growth of 3.2% to 3.7% (previously 2.5% to 3.5%).
Ulta Beauty also reaffirmed plans to open 60 new stores, relocate seven stores, and remodel approximately 40 locations during fiscal 2026.
