Ulta Beauty lifts 2026 outlook after Q2 EPS $6.55
Ulta Beauty, Inc. (ULTA) reported higher results for the second quarter of fiscal 2026, the thirteen weeks ended August 1, 2026.
Rhea-AI Filing Summary
Ulta Beauty, Inc. (ULTA) reported higher results for the second quarter of fiscal 2026, the thirteen weeks ended August 1, 2026. Net sales were $3,035.7 million, up from $2,788.5 million a year earlier, with comparable sales increasing 3.8%. Gross profit margin was essentially steady at 39.1% versus 39.2%, while selling, general and administrative expenses rose to $802.8 million from $741.7 million. Operating income grew to $379.6 million, and diluted EPS increased to $6.55 from $5.78. Net income was $282.0 million, compared with $260.9 million.
For the first six months of fiscal 2026, net sales were $6,199.5 million with net income of $622.5 million and diluted EPS of $14.31. Net cash provided by operating activities was $381.6 million. Ulta ended the quarter with $158.5 million in cash and $55.0 million in short‑term investments, and $339.6 million of short‑term debt, largely tied to working capital and capital allocation priorities, including repurchases.
Ulta continued returning capital, repurchasing 1.4 million shares for $791.1 million in the first half of fiscal 2026, with $1.0 billion remaining under its $3.0 billion authorization and an expectation to use it by year‑end. The company opened 34 new stores and closed 3 in the first six months, ending the quarter with 1,622 stores globally. Based on first‑half performance, Ulta raised its full‑year 2026 outlook, guiding to net sales growth of 6.7%–7.2%, comparable sales growth of 3.2%–3.7%, operating income growth of 8.3%–9.3%, and diluted EPS of $28.70–$29.00, while keeping capital expenditure guidance at $400–$450 million.
Positive
- Strong top-line and EPS growth: Q2 net sales rose to $3,035.7 million from $2,788.5 million, and diluted EPS increased to $6.55 from $5.78, indicating solid growth in both revenue and profitability.
- Robust first-half profitability and cash generation: For the first 26 weeks, net sales were $6,199.5 million, net income $622.5 million, and net cash provided by operating activities $381.6 million.
- Raised full-year fiscal 2026 guidance: Net sales growth outlook increased to 6.7%–7.2%, comparable sales to 3.2%–3.7%, operating income growth to 8.3%–9.3%, and EPS to $28.70–$29.00.
- Significant capital returns via share repurchases: Ulta repurchased 1.4 million shares for $791.1 million in the first six months, and expects to use the remaining $1.0 billion under its $3.0 billion authorization by the end of fiscal 2026.
- Ongoing store expansion: Ulta opened 34 stores and closed 3 in the first six months of fiscal 2026, ending Q2 with 1,622 company‑operated stores and 16.1 million gross square feet.
Negative
- Comparable sales growth deceleration: Q2 comparable sales grew 3.8%, down from 6.7% in the prior-year quarter, indicating slower same‑store growth even as overall sales increased.
- Higher short-term debt and lower cash: Short-term debt increased to $339.6 million at August 1, 2026, from $62.3 million at January 31, 2026, while cash and cash equivalents declined to $158.5 million from $424.2 million.
- Slight margin pressure: Q2 gross margin was 39.1% versus 39.2% a year earlier, and SG&A expenses increased to $802.8 million from $741.7 million, modestly pressuring profitability despite higher operating income.
Filing Explained
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Key Figures
Key Terms
comparable sales financial
operating income financial
deferred revenue financial
operating lease liabilities financial
Earnings Snapshot
For fiscal 2026, Ulta expects net sales growth of 6.7%–7.2%, comparable sales growth of 3.2%–3.7%, operating income growth of 8.3%–9.3%, diluted EPS of $28.70–$29.00, and capital expenditures of $400–$450 million.
FAQ
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