Ulta Beauty topped Wall Street revenue forecasts for the fourth quarter, but missed on the bottom line as it forecasts slower growth for fiscal 2026.
Net sales increased 11.8 percent to $3.9 billion for the fourth-quarter fiscal 2025 ended Jan. 31, primarily due to increased comparable sales, the acquisition of Space NK, and sales from new stores. On average, Wall Street analysts penciled in $3.83 billion.
Comparable sales rose 5.8 percent.
“The Ulta Beauty team closed the year with momentum, delivering strong fourth-quarter and full-year sales and continued market share gains. Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies,” said Kecia Steelman, president and chief executive officer.
Once again, fragrance was the strongest performing category during the quarter, delivering double-digit comp growth fueled by newness from established brands including YSL and Prada, as well as exclusive brands such as Noyz, Sniff and Summer Mink by Drake.
The hair category delivered its best comp performance this year, with comp growth for the quarter in the high-single-digit range, helped by Amika, Moroccanoil and Cecred.
The skin care and wellness category grew by midsingle digits. K-beauty brands Medicube, Anua and Peach and Lily drove strong guest engagement.
Ulta said it took market share in the makeup category with low-single-digit growth in total, supported by positive comps in both mass and prestige makeup.
Earnings per share came in at $8.01 versus analysts estimates of $8.03.
At one point, its stock price dipped around 10 percent in after-hours trading, having closed down 4.28 percent to $624.70 on the back of the earnings report.
For the fiscal year as a whole, net sales increased 9.7 percent to $12.4 billion. But for fiscal year 2026, Ulta is forecasting net sales to grow 6 percent to 7 percent.
On the consumer outlook, Steelman believes demand remains resilient, although there is a strong focus on value.
“We expect these themes to continue into fiscal 2026. Though we are increasingly mindful of rising global conflicts that could impact economic conditions,” she said during a call with analysts. “Our expectation for the beauty category growth is in line with the average historical growth rate, with expected growth in the 2 percent to 4 percent range.”
