Ulta Beauty’s first quarter results for 2026 saw revenue and earnings per share come in above Wall Street expectations. Management attributed the quarter’s performance to broad-based sales strength across both in-store and digital channels, with particularly strong growth in fragrance and prestige categories. CEO Kecia Steelman emphasized the impact of in-store events, exclusive brand launches, and data-driven loyalty initiatives. Steelman also noted, “Our core U.S. business is fundamentally strong and delivering healthy sales growth,” while highlighting that consumer demand remains healthy but value-focused against a backdrop of inflationary pressures and rising fuel costs.
Is now the time to buy ULTA? Find out in our full research report (it’s free for active Edge members).
Ulta (ULTA) Q1 CY2026 Highlights:
- Revenue: $3.16 billion vs analyst estimates of $3.12 billion (11.1% year-on-year growth, 1.5% beat)
- EPS (GAAP): $7.74 vs analyst estimates of $6.91 (12.1% beat)
- EPS (GAAP) guidance for the full year is $28.30 at the midpoint, missing analyst estimates by 1.2%
- Operating Margin: 14.2%, in line with the same quarter last year
- Locations: 1,608 at quarter end, up from 1,451 in the same quarter last year
- Same-Store Sales rose 5.3% year on year (2.9% in the same quarter last year)
- Market Capitalization: $19.9 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Ulta’s Q1 Earnings Call
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Adrienne Yih-Tennant (Barclays): Asked which categories are seeing the best return on marketing and SG&A investments. CEO Kecia Steelman pointed to fragrance and exclusive Ignite brands, highlighting balanced performance and ongoing focus on value-driven promotions.
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Simeon Gutman (Morgan Stanley): Asked if the April comp sales exit rate is sustainable and about SG&A flexibility. CFO Christopher DelOrefice stressed a planned step-down in SG&A growth later in the year and balanced leverage between investment and cost controls.
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Dana Telsey (Telsey Group): Inquired about traffic trends and upcoming events. Steelman described efforts to boost in-store engagement through events and loyalty, while DelOrefice outlined a balanced profit profile, with gross margin gains in the first half and SG&A leverage in the second half.
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Michael Baker (D.A. Davidson): Asked about the impact and trajectory of TikTok Shop. Steelman noted early success with exclusive bundles and Gen Z engagement, framing the initiative as primarily guest acquisition rather than immediate revenue growth.
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Michael Lasser (UBS): Pressed on competitive intensity and promotional activity. Steelman underscored Ulta’s commitment to share gains through exclusivity and brand-building, while DelOrefice maintained that profit growth would remain a priority despite ongoing investments.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the scaling and monetization of TikTok Shop and digital initiatives, (2) the impact of exclusive brand launches and new store openings on traffic and basket size, and (3) Ulta’s ability to maintain margin discipline amid rising competition and inflation. The effectiveness of supply chain automation and loyalty-driven personalization will also be important signs of execution.
Ulta currently trades at $465.15, down from $494.87 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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