ULTA 8-K — Smart Summary

Ulta Beauty, Inc. reported first quarter fiscal 2026 results for the thirteen-week period ended May 2, 2026, with net sales increasing 11.1% to $3.2B and diluted EPS rising 15.5% to $7.74. The company returned $555M to shareholders through share repurchases and updated its fiscal 2026 guidance, raising the lower end of operating income growth and diluted EPS ranges.

• Net sales increased 11.1% to $3.2B (vs. $2.8B in Q1 fiscal 2025), driven by comparable sales growth, the acquisition of Space NK, and new stores
• Comparable sales increased 5.3% (vs. 2.9% in Q1 fiscal 2025), driven by a 3.7% increase in average ticket and a 1.6% increase in transactions
• Gross profit increased 13.8% to $1.3B; gross margin expanded to 40.1% from 39.1% YoY, primarily due to lower inventory shrink and higher merchandise margin
• SG&A expenses increased 14.6% to $814.7M; as a % of net sales, SG&A increased to 25.8% from 24.9% YoY
• Operating income increased 11.6% to $448.3M, or 14.2% of net sales (vs. 14.1% in Q1 fiscal 2025)
• Net income increased to $340.5M (10.8% of net sales) from $305.1M (10.7% of net sales) YoY
• Diluted EPS increased 15.5% to $7.74 (vs. $6.70 in Q1 fiscal 2025)
• Net cash provided by operating activities was $261.9M (vs. $220M in Q1 fiscal 2025)

• Cosmetics: 40% of net sales in Q1 fiscal 2026 (unchanged from 40% in Q1 fiscal 2025)
• Skincare and wellness: 24% of net sales in Q1 fiscal 2026 (vs. 25% in Q1 fiscal 2025)
• Haircare: 18% of net sales in Q1 fiscal 2026 (unchanged from 18% in Q1 fiscal 2025)
• Fragrance: 12% of net sales in Q1 fiscal 2026 (vs. 11% in Q1 fiscal 2025)
• Services: 4% of net sales in Q1 fiscal 2026 (unchanged from 4% in Q1 fiscal 2025)
• Other: 2% of net sales in Q1 fiscal 2026 (unchanged from 2% in Q1 fiscal 2025)
• U.S. stores as of May 2, 2026: 1,521 (18 opened, 2 closed, net 16 added in Q1 fiscal 2026)
• International company-operated stores as of May 2, 2026: 87 (1 opened, net 1 added in Q1 fiscal 2026)

• Cash and cash equivalents at end of Q1 fiscal 2026: $166.3M (vs. $454.6M at end of Q1 fiscal 2025 and $424.2M at January 31, 2026)
• Short-term investments at end of Q1 fiscal 2026: $55M
• Short-term debt at end of Q1 fiscal 2026: $144.9M
• Merchandise inventories, net increased 12.5% to $2.4B, primarily due to new brand launches, Space NK acquisition, strategic investments in key categories, and 70 net new Ulta Beauty stores since May 3, 2025
• Capital expenditures during Q1 fiscal 2026: $58.3M, primarily driven by investments in new and existing stores
• Repurchased 958,323 shares of common stock at a cost of $555M during Q1 fiscal 2026
• As of May 2, 2026, $1.3B remained available under the $3B share repurchase program announced in October 2024

• "Fiscal 2026 is off to a strong start driven by broad-based growth across all channels and major categories. Our results demonstrate the strengths of our model, focused execution of our talented associates, and the effectiveness of our strategy in an uncertain macroeconomic landscape. I am particularly proud of our teams' commitment to delighting our guests while also advancing our longer-term strategic initiatives with discipline," said Kecia Steelman, president and chief executive officer.
• "Looking ahead, we remain focused on delivering long-term shareholder value through our strategic growth initiatives, continued prudent cost management, and our differentiated guest experience," said Kecia Steelman, president and chief executive officer.

• Net sales growth: 6% to 7% (no change from initial fiscal 2026 outlook)
• Comparable sales growth: 2.5% to 3.5% (no change from initial fiscal 2026 outlook)
• Operating income growth: updated to 6.5% to 9% (vs. initial 6% to 9%)
• Diluted earnings per share: updated to $28.36 to $28.80 (vs. initial $28.05 to $28.55)
• Capital expenditures: $400M to $450M (no change from initial fiscal 2026 outlook)