Ulta Beauty (ULTA) Q2 2027 earnings summary

Executive summary

• Net sales rose 8.9% year-over-year to $3.0 billion in Q2 2026, driven by comparable sales growth, new store openings, and the Space NK acquisition.

• Operating profit increased 10.1% to $380 million, with diluted EPS up 13.3% to $6.55, reflecting strong operational execution and disciplined financial management.

• Loyalty program active members increased by 3% to approximately 47 million, with higher average spend per member.

• Launched 15 new brands, expanded K-beauty and fragrance assortments, and advanced omnichannel and international expansion strategies.

• Raised full-year sales and earnings guidance based on strong first-half performance and market share gains.

Financial highlights

• Net sales rose 8.9% to $3 billion; comparable sales up 3.8%.

• Operating profit increased 10.1% to $380 million; operating margin at 12.5% of sales.

• Net income grew 8.1% to $282 million; diluted EPS up 13.3% to $6.55.

• Gross margin slightly decreased to 39.1% from 39.2%; SG&A as a percent of sales decreased 20 bps to 26.4%.

• Returned $236 million to shareholders via stock repurchases in Q2; $1.8 billion buyback target for FY26.

Outlook and guidance

• FY26 net sales growth expected between 6.7% and 7.2%; comp sales growth 3.2%-3.7%.

• Operating profit growth forecasted at 8.3%-9.3%; diluted EPS guidance raised to $28.70-$29.00, up 11.9%-13.1% year-over-year.

• Second half net sales expected to rise 4%-5%, with comp sales growth of 2%-3%.

• Guidance incorporates flexibility for promotional activity and macroeconomic uncertainty.

• Plans to return ~$1.8B to shareholders via stock repurchases in FY26.