Ulta Beauty (ULTA) Barclays 19th Annual Global Consumer Conference summary

Consumer trends and resilience

• Beauty is viewed as an affordable luxury and self-care, leading to stable consumer behavior despite macroeconomic uncertainty.

• All income and age cohorts showed increased average spend in Q2, with no significant behavioral shifts.

• European operations, particularly Space NK in the UK, continue to see strong double-digit comps and ongoing investment.

Category performance and growth drivers

• Fragrance is a leading growth category, attracting new and younger male consumers, with ambitions to be number one in the US.

• Skincare growth is driven by K-beauty and new C-beauty launches, with exclusive products fueling sales.

• Makeup trends are shifting toward heavier, glam looks, while haircare and wellness are expanding with new consumer needs.

• Wellness is a major focus, with 95% of guests shopping the category and new wellness shops being piloted.

Competitive positioning and strategic moat

• The end-to-end offering from entry-level to luxury sets the company apart in specialty beauty retail.

• Exiting the Target partnership allowed the recapture of prestige brands and focused marketing to regain those customers.

• The in-store experience, driven by knowledgeable associates and authentic service, is considered irreplicable.

• A flywheel effect is created by exclusive brands, loyalty, and data-driven engagement, reinforcing the competitive moat.