We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ULTA reported Q4 EPS of $8.01 and sales of $3.9B, beating estimates as revenues rose 11.8% year over year.
ULTA comparable sales rose 5.8%, helped by a 4.2% rise in average ticket and a 1.6% increase in transactions.
ULTA expects fiscal 2026 sales to grow 6-7%, with EPS projected between $28.05 and $28.55.
Ulta Beauty, Inc. (ULTA - Free Report) reported fourth-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals.
The company reported fiscal fourth-quarter earnings per share of $8.01, beating the Zacks Consensus Estimate of $8.00. However, the bottom line declined 5.3% compared with the year-ago reported figure.
Ulta Beauty Inc. Price, Consensus and EPS Surprise
Net sales of this beauty product retailer increased 11.8% year over year to $3,898.4 million and beat the Zacks Consensus Estimate of $3,814 million. This growth was driven by higher comparable sales, the acquisition of Space NK and new store contributions.
Comparable sales rose 5.8%, supported by a 4.2% increase in average ticket size and a 1.6% increase in transactions.
ULTA’s Quarterly Results: Key Metrics & Insights
Ulta Beauty’s gross profit totaled $1,483.6 million, up 11.2% from $1,333.7 million. However, as a percentage of net sales, gross profit decreased 38.1% from 38.2%. The decrease was mainly due to an unfavorable channel mix, deleverage of store fixed expenses and other revenues, partially offset by lower inventory shrink and supply-chain efficiencies.
Selling, general and administrative (SG&A) expenses increased 23% to $1,003.1 million from $815.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses increased to 25.7% from 23.4%. This rise was due to the higher corporate overhead related to strategic enterprise investments, increased advertising expenses and higher incentive compensation.
Operating income was $476.9 million compared with $516.3 million in the prior-year quarter. As a percentage of net sales, operating income was 12.2%, down from 14.8% in the year-ago period.
ULTA’s Financial Health Snapshot & Store Update
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $424.2 million. Net merchandise inventories were $2,181.1 million at the end of the reported quarter. Stockholders’ equity at the end of the quarter was $2,803.5 million. Net cash provided by operating activities was $1,502.8 million for the fiscal year ended Jan. 31, 2026.
In fiscal 2025, the company repurchased 2 million shares of its common stock for $890.5 million, excluding excise taxes. As of Jan. 31, 2026, $1.8 billion remained available under the $3 billion share repurchase program announced in October 2024.
What to Expect From ULTA in FY26
Ulta Beauty expects fiscal 2026 net sales growth in the range of 6% to 7%. Comparable sales growth is expected to be 2.5% to 3.5% year over year.
Management expects an operating income growth between 6% and 9% in fiscal 2026. Earnings per share are envisioned to be in the range of $28.05 to $28.55.
The stock has risen 5.7% in the past three months compared with the industry’s growth of 0.6%.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 22.1% and 25%, respectively, from the year-ago reported numbers. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.
Ross Stores, Inc. (ROST - Free Report) , operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 (Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 6.2%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and earnings implies an increase of 5.6% and 9.4%, respectively, from the prior-year levels.
Williams-Sonoma, Inc. (WSM - Free Report) operates as an omni-channel specialty retailer of various products for home. It carries a Zacks Rank #2 at present. WSM delivered a trailing four-quarter average earnings surprise of 8.6%.
The Zacks Consensus Estimate for Williams-Sonoma’s current fiscal-year sales indicates growth of 1.9% from the previous year’s reported figure.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Ulta Beauty Q4 Earnings & Revenues Beat Estimates, Sales Up 11.8% Y/Y
Key Takeaways
Ulta Beauty, Inc. (ULTA - Free Report) reported fourth-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals.
The company reported fiscal fourth-quarter earnings per share of $8.01, beating the Zacks Consensus Estimate of $8.00. However, the bottom line declined 5.3% compared with the year-ago reported figure.
Ulta Beauty Inc. Price, Consensus and EPS Surprise
Ulta Beauty Inc. price-consensus-eps-surprise-chart | Ulta Beauty Inc. Quote
Net sales of this beauty product retailer increased 11.8% year over year to $3,898.4 million and beat the Zacks Consensus Estimate of $3,814 million. This growth was driven by higher comparable sales, the acquisition of Space NK and new store contributions.
Comparable sales rose 5.8%, supported by a 4.2% increase in average ticket size and a 1.6% increase in transactions.
ULTA’s Quarterly Results: Key Metrics & Insights
Ulta Beauty’s gross profit totaled $1,483.6 million, up 11.2% from $1,333.7 million. However, as a percentage of net sales, gross profit decreased 38.1% from 38.2%. The decrease was mainly due to an unfavorable channel mix, deleverage of store fixed expenses and other revenues, partially offset by lower inventory shrink and supply-chain efficiencies.
Selling, general and administrative (SG&A) expenses increased 23% to $1,003.1 million from $815.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses increased to 25.7% from 23.4%. This rise was due to the higher corporate overhead related to strategic enterprise investments, increased advertising expenses and higher incentive compensation.
Operating income was $476.9 million compared with $516.3 million in the prior-year quarter. As a percentage of net sales, operating income was 12.2%, down from 14.8% in the year-ago period.
ULTA’s Financial Health Snapshot & Store Update
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $424.2 million. Net merchandise inventories were $2,181.1 million at the end of the reported quarter. Stockholders’ equity at the end of the quarter was $2,803.5 million. Net cash provided by operating activities was $1,502.8 million for the fiscal year ended Jan. 31, 2026.
In fiscal 2025, the company repurchased 2 million shares of its common stock for $890.5 million, excluding excise taxes. As of Jan. 31, 2026, $1.8 billion remained available under the $3 billion share repurchase program announced in October 2024.
What to Expect From ULTA in FY26
Ulta Beauty expects fiscal 2026 net sales growth in the range of 6% to 7%. Comparable sales growth is expected to be 2.5% to 3.5% year over year.
Management expects an operating income growth between 6% and 9% in fiscal 2026. Earnings per share are envisioned to be in the range of $28.05 to $28.55.
The stock has risen 5.7% in the past three months compared with the industry’s growth of 0.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 22.1% and 25%, respectively, from the year-ago reported numbers. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.
Ross Stores, Inc. (ROST - Free Report) , operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 (Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 6.2%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and earnings implies an increase of 5.6% and 9.4%, respectively, from the prior-year levels.
Williams-Sonoma, Inc. (WSM - Free Report) operates as an omni-channel specialty retailer of various products for home. It carries a Zacks Rank #2 at present. WSM delivered a trailing four-quarter average earnings surprise of 8.6%.
The Zacks Consensus Estimate for Williams-Sonoma’s current fiscal-year sales indicates growth of 1.9% from the previous year’s reported figure.