How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Ulta Beauty (ULTA Quick QuoteULTA - Free Report) ten years ago? It may not have been easy to hold on to ULTA for all that time, but if you did, how much would your investment be worth today?

Ulta Beauty's Business In-Depth

With that in mind, let's take a look at Ulta Beauty's main business drivers.

Bolingbrook, IL-based, Ulta Beauty Inc., previously known as Ulta Salon, Cosmetics & Fragrance, Inc., is a leading beauty retailer in the United States. Founded in 1990, the company changed its name to Ulta Beauty in January 2017.

The company offers a wide range of products including cosmetics, fragrance, skincare, hair care, bath and body products, and salon styling tools in stores. It sells more than 25,000 products from about 500 well-established and emerging beauty brands across all categories and price points. We note that the company's skincare category has been standing out in particular for a while now, given consumers' rising consciousness.

Meanwhile, the beauty products retailer also provides private label products comprising Ulta Beauty Collection branded cosmetics, skincare, and bath products. Additionally, the company operates a full-service salon in every store offering hair, skin and brow services. Additionally, it offers products through its Website, ulta.com, as well as mobile applications. The products offered by the company include the prestige and mass beauty brands.

As part of its value proposition, Ulta Beauty provides a range of loyalty programs through its Customer Relationship Management platform. It also offers frequent promotions, coupons, in-store events and gifts. The company also makes use of a range of media platforms to advertise products as well as generate awareness. The company strives to boost distribution center capabilities to better support store footfall and online demand.

The company has a strong vendor base and holds partnerships with companies such as Estee Lauder, L’Oréal and Shiseido. Ulta Beauty works closely with vendors to provide improved growth platforms for new and existing brands. Ulta Beauty ended the third quarter of fiscal 2025 with 1,500 stores, totaling 15.6 million square feet across the United States, apart from the 84 stores in the United Kingdom and Ireland operated by Space NK.

(Note:  Zacks identifies fiscal years by the month in which the fiscal year ends, while ULTA identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by ULTA, will refer to this same fiscal year as being the year before the same year, as identified by Zacks)

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Ulta Beauty ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in January 2016 would be worth $3,455.14, or a 245.51% gain, as of January 6, 2026, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 242.24% and gold's return of 290.52% over the same time frame.

Going forward, analysts are expecting more upside for ULTA.

Ulta Beauty's fundamentals remain compelling, supported by a differentiated retail model that blends mass, prestige and luxury beauty, driving broad-based demand and consistent customer engagement. Its powerful loyalty ecosystem and growing digital capabilities deepen relationships, encourage repeat purchases and enhance omnichannel convenience. Strong merchandising discipline, effective inventory management and a focus on operational execution underpin margin resilience even in a promotional environment. Initiatives such as the marketplace platform expand assortment, while international expansion provides additional avenues for growth. Although near-term investments weigh on margins, these initiatives strengthen Ulta Beauty's brand relevance and scalability, positioning it well to capture growth opportunities in the global beauty market.

The stock is up 7.10% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2026. The consensus estimate has moved up as well.