Ulta Beauty (ULTA) Q1 2027 earnings summary

Executive summary

• Net sales rose 11.1% year-over-year to $3.2 billion, driven by comparable sales growth, new store openings, and the Space NK acquisition.

• Diluted EPS increased 15.5% to $7.74, with net income up 11.6% to $340.5 million.

• Broad-based performance across all channels and categories, with market share gains in prestige beauty and flat share in mass beauty.

• Strategic initiatives in scaling new businesses, international expansion, and digital innovation are gaining traction.

• Continued focus on financial discipline, cost optimization, and profitable growth.

Financial highlights

• Comparable sales increased 5.3%, driven by a 3.7% rise in average ticket and 1.6% increase in transactions.

• Gross margin expanded by 100 basis points to 40.1%, mainly due to lower inventory shrink and higher merchandise margin.

• Operating profit grew 11.6% to $448.3 million (14.2% of sales).

• SG&A expenses rose 14.6% to $850 million, reflecting investments in growth initiatives and the Space NK acquisition.

• Net income reached $340.5 million; cash and cash equivalents at $166.3 million; inventories up 12.5% to $2.4 billion.

Outlook and guidance

• Maintained full-year net sales growth guidance of 6%-7% and comparable sales growth of 2.5%-3.5%.

• Operating profit guidance raised to 6.5%-9% growth for the year; EPS guidance increased to $28.36-$28.80, up 10.6%-12.3%.

• Gross margin expected to be roughly flat for the year, balancing productivity gains and cost pressures.

• Increased fiscal 2026 stock buyback target from $1 billion to $1.5 billion.

• Capital expenditures guidance remains at $400–$450 million.