Ulta Beauty delivered Q4 fiscal 2025 revenue of $3.90 billion, beating Wall Street’s $3.80-$3.83 billion consensus and growing 11.8% year over year. Diluted EPS of $8.01 came in just below the LSEG estimate of $8.03 but above the Zacks consensus of $7.98. Shares dropped approximately 8-9% in after-hours trading on March 12, 2026, as investors reacted to cautious fiscal 2026 guidance that landed at the low end of expectations.
About Ulta Beauty
Ulta Beauty, Inc. (NASDAQ: ULTA) is the largest specialty beauty retailer in the United States and a leading destination for cosmetics, fragrance, skincare, haircare, wellness products, and salon services. Founded in 1990 by Richard E. George and Terry Hanson, the company is headquartered at 1000 Remington Blvd, Bolingbrook, Illinois. Since opening its first store more than three decades ago, Ulta Beauty has grown into a retail powerhouse operating 1,505 stores across all 50 U.S. states, plus 86 Space NK stores in the U.K. and Ireland following its recent international acquisition.
As of March 12, 2026, Ulta Beauty’s market capitalization stood at approximately $28 billion, though it declined toward approximately $24-25 billion on March 13 following the post-earnings selloff. The company carries a trailing P/E ratio of approximately 24.6 and does not pay a dividend.
Ulta Beauty employs more than 60,000 associates across its retail, corporate, and distribution network and operates the Ulta Beauty Rewards loyalty program with a record 46.7 million active members. The company also maintains an international presence through its joint venture in Mexico, its franchise in the Middle East, and its Space NK subsidiary.
Top Financial Highlights
- Net sales grew 11.8% to $3,898.4 million in Q4 fiscal 2025, compared to $3,487.6 million in the prior-year quarter.
- Comparable sales increased 5.8%, driven by a 4.2% rise in average ticket and a 1.6% increase in transactions.
- Diluted EPS was $8.01 for Q4, compared to $8.46 in Q4 fiscal 2024, a decline of 5.3% year over year.
- Full-year net sales rose 9.7% to $12,392.8 million, up from $11,295.7 million in fiscal 2024.
- Full-year diluted EPS increased 1.2% to $25.64, up from $25.34 in the prior year.
- Gross profit for Q4 was $1,483.6 million (38.1% of net sales), compared to $1,333.7 million (38.2%) in the year-ago quarter.
- Operating income for Q4 was $476.9 million (12.2% of net sales), versus $516.3 million (14.8%) a year earlier.
- Operating cash flow for the full year was $1,502.8 million, up from $1,338.6 million in fiscal 2024, representing a 12.3% increase.
- Cash and cash equivalents at year end totaled $424.2 million, with an additional $70.0 million in short-term investments.
- The company opened 63 net new stores during fiscal 2025, ending with 1,505 Ulta Beauty stores and 86 Space NK stores across six countries.
- Loyalty membership grew 5% to a record 46.7 million active members.
- The company returned $890.5 million to shareholders through share repurchases during fiscal 2025, with $1.8 billion remaining under its $3.0 billion buyback program.
- Fiscal 2026 guidance projects net sales growth of 6%-7% ($13.1-$13.2 billion), comp sales growth of 2.5%-3.5%, and diluted EPS of $28.05-$28.55.
Beat or Miss?
Ulta Beauty’s Q4 results presented a mixed picture relative to Wall Street estimates. Revenue came in comfortably above consensus projections, while earnings per share hovered near the estimate line depending on the source.
| Metric | Reported | Estimated (Consensus) | Difference/Analysis |
| Q4 Revenue | $3,898.4M | $3,800M-$3,830M | Beat by ~2.2% |
| Q4 Diluted EPS | $8.01 | $7.93-$8.03 | In line to slight miss depending on source |
| Q4 Comparable Sales | 5.80% | +2.5%-3.5% (company guidance range) | Exceeded own guidance significantly |
| Q4 Gross Margin | 38.10% | N/A | Down 10 bps YoY |
| Q4 Operating Margin | 12.20% | N/A | Down 260 bps YoY due to SG&A investment |
| FY2026 EPS Guidance (midpoint) | $28.30 | $28.40-$28.57 | Slightly below consensus |
| FY2026 Comp Sales Guidance | 2.5%-3.5% | ~3.5% | Low end disappointed investors |
The revenue beat was driven by the Space NK acquisition, strong comparable sales fueled by holiday execution, and new store openings. However, the EPS miss (versus the LSEG estimate of $8.03) and the FY2026 guidance midpoint landing below analyst expectations became the focal point for investors.
What Leadership Is Saying?
“The Ulta Beauty team closed the year with momentum, delivering strong fourth quarter and full-year sales and continued market share gains. Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies. I am proud of how our team is embracing and executing our Ulta Beauty Unleashed strategy. Looking ahead, we are well positioned for sustainable, profitable growth in 2026 and beyond.”– Kecia Steelman, President and Chief Executive Officer
“We have strengthened our foundation, invested in key capabilities, and maintained a solid financial foundation with strong operating cash flow that enables value creation and also provides us with financial flexibility to pursue growth opportunities and weather dynamic macro environments. I am excited and optimistic about the future of Ulta Beauty, and I am energized to serve as a strategic partner to Kecia and the rest of the executive team to ensure we build on our momentum with a strong focus on driving long-term sustainable growth and maximizing value creation.” – Chris Del Orfus, Chief Financial Officer
Historical Performance
The year-over-year comparison below highlights how Ulta Beauty’s top-line growth accelerated while profitability came under pressure due to strategic investments in the Ulta Beauty Unleashed initiative, the Space NK acquisition, and elevated incentive compensation.
Q4 FY2025 vs. Q4 FY2024
| Category | Q4 FY2025 (Jan 31, 2026) | Q4 FY2024 (Feb 1, 2025) | Change (%) |
| Net Sales | $3,898.4M | $3,487.6M | +11.8% |
| Net Income | $356.7M | $393.3M | -9.3% |
| Diluted EPS | $8.01 | $8.46 | -5.3% |
| Gross Profit Margin | 38.10% | 38.20% | -10 bps |
| SG&A Expenses | $1,003.1M | $815.6M | +23.0% |
| Operating Income | $476.9M | $516.3M | -7.6% |
| Operating Margin | 12.20% | 14.80% | -260 bps |
| Comparable Sales | 5.80% | 1.50% | +430 bps |
Full Year FY2025 vs. Full Year FY2024
| Category | FY2025 (Jan 31, 2026) | FY2024 (Feb 1, 2025) | Change (%) |
| Net Sales | $12,392.8M | $11,295.7M | +9.7% |
| Net Income | $1,153.5M | $1,201.1M | -4.0% |
| Diluted EPS | $25.64 | $25.34 | +1.2% |
| Operating Cash Flow | $1,502.8M | $1,338.6M | +12.3% |
| Operating Income | $1,533.0M | $1,565.0M | -2.0% |
| Gross Margin | 39.10% | 38.80% | +30 bps |
| SG&A Expenses | $3,296.4M | $2,808.6M | 17.40% |
Net income declined on both a quarterly and annual basis despite top-line growth, primarily because SG&A expenses surged 23.0% in Q4 and 17.4% for the full year. Management attributed this to higher incentive compensation tied to exceeding performance targets, the operational costs of integrating Space NK, and planned investments in the Ulta Beauty Unleashed strategy including digital capabilities, AI tools, and enhanced store experiences.
Competitor Performance Comparison
The beauty and personal care retail sector showed mixed results across major players during the most recent comparable reporting periods. Below is a comparison of Ulta Beauty against two publicly traded competitors in adjacent beauty retail segments.
| Metric | Ulta Beauty (Q4 FY2025, ended Jan 2026) | e.l.f. Beauty (Q4 CY2025, ended Dec 2025) | Sally Beauty (Q1 FY2026, ended Dec 2025) |
| Revenue | $3,898.4M | $489.5M | $943.0M |
| Revenue Growth (YoY) | +11.8% | +37.8% | +0.6% |
| EPS (Reported/Adjusted) | $8.01 (GAAP) | $1.24 (Adjusted) | $0.48 (Adjusted) |
| Gross Margin | 38.1% | ~71% (est.) | 51.2% |
| Operating Margin | 12.2% | 13.8% | 8.1% (GAAP) |
| Comp Sales | +5.8% | N/A | Flat |
| Market Cap (approx.) | ~$24-28B | ~$5.1B | ~$1.6B (est.) |
e.l.f. Beauty continues to be the fastest-growing player in accessible beauty, posting a 37.8% revenue surge driven by product innovation, international expansion, and the pending acquisition of Rhode. Sally Beauty showed minimal revenue growth at 0.6%, with flat comparable sales, though adjusted earnings improved by 12% thanks to gross margin expansion. Ulta Beauty occupies the middle ground with double-digit revenue growth fueled by both organic comparable sales and the inorganic contribution of Space NK, though its operating margin contracted year over year due to elevated investment spending.
How the Market Reacted?
Ulta Beauty shares closed the regular trading session on March 12, 2026, at $624.70, already down 4.28% for the day. Following the after-hours earnings release, the stock dropped an additional 8-9% as investors focused on the cautious fiscal 2026 outlook rather than the Q4 revenue beat. On March 13, shares opened at $568.05, reflecting a 9.07% gap-down from the prior close, and continued to trade lower during the session, falling to the $549-$565 range, marking a decline of approximately 10-12% from the pre-earnings price.
The selloff was primarily driven by three concerns: the FY2026 EPS guidance midpoint of $28.30 came in slightly below the Street’s $28.40-$28.57 consensus; the comparable sales growth guidance of 2.5%-3.5% was viewed as conservative with its low end below the 3.5% analyst average; and the overall sentiment was dampened by the sharp increase in SG&A expenses that compressed operating margins by 260 basis points in Q4. Despite the near-term negative reaction, 73 analysts maintain a “buy” rating on the stock, reflecting confidence in the long-term execution of the Ulta Beauty Unleashed strategy.
