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Ulta Beauty Delivers 5.3% Comp Growth: Can the Momentum Sustain?
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Key Takeaways
Ulta Beauty's Q1 sales growth was 11.1%, with comparable sales rising 5.3% across channels.
ULTA sees fragrance lead category growth, boosted by luxury brands and new product innovation.
ULTA maintains fiscal 2026 outlook with expected sales growth of 6%-7%.
Ulta Beauty, Inc. (ULTA - Free Report) continued to demonstrate strength in its business performance, as it delivered strong fiscal first-quarter 2026 results, with net sales growth of 11.1%. Comparable sales increased 5.3%, reflecting a 3.7% increase in average ticket and a 1.6% increase in transactions. Management highlighted that the performance was broad-based, with all channels and major categories contributing positively to the overall results.
Fragrance remained the company’s strongest-performing category during the quarter, delivering high-teens comparable sales growth and increasing its contribution to total revenues from 11% to 12%. The company continued to make progress toward its goal of becoming the leading fragrance destination, supported by strong execution. Growth was primarily driven by newness from core luxury brands, early momentum from Balmain, and innovation, such as the new milk scent format from the exclusive brand NOYZ.
The haircare category delivered strong performance during the quarter, achieving high single-digit comparable sales growth, driven primarily by strength in prestige haircare. Growth was supported by new brands such as Amika and Moroccanoil, along with continued momentum from exclusive brand Cecred. Hair treatments, including repair-focused products and scalp regimens, outperformed, while weakness in traditional hair tools offset growth from innovative brands. The makeup category also posted low single-digit comp growth, led by prestige makeup and supported by new brand launches and innovation across key brands.
Based on the strong execution in the first quarter, Ulta Beauty maintained its fiscal 2026 guidance for sales and comparable sales growth. The company continues to expect net sales to increase between 6% and 7% for the year, while comparable sales growth is expected to remain within the range of 2.5% to 3.5%. Overall, Ulta Beauty’s broad-based category momentum, strong customer engagement and fragrance-led growth position the company to sustain comparable sales momentum ahead.
How Do Sally Beauty & Kohl’s Fare?
Sally Beauty Holdings, Inc. (SBH - Free Report) reported consolidated net sales of $903 million in the second quarter of fiscal 2026, reflecting 2.3% growth compared with the prior-year period. Consolidated comparable sales grew 1.3% in the quarter. For fiscal 2026, Sally Beauty tightened its net sales guidance range to $3.725-$3.75 billion from the previously guided range of $3.71-$3.77 billion, and expects comparable sales to be flat to up 1%.
Kohl’s Corporation (KSS - Free Report) reported a decline in first-quarter fiscal 2026 performance, with net sales decreasing 1.7% year over year to $3 billion. Comparable sales also decreased 1.1% in the first quarter, primarily driven by a decline in transactions. Kohl’s continues to expect comparable sales for the fiscal 2026 to be within the range of a 2% decrease to flat.
The Zacks Rundown for ULTA
The company’s shares have gained 3.8% in the past year against the industry’s 4.6% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.95, higher than the industry’s average of 14.45.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings per share implies a year-over-year rise of 11.8% and 11.3%, respectively.
View the Zacks #1 Rank List
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Ulta Beauty Delivers 5.3% Comp Growth: Can the Momentum Sustain?
Key Takeaways
Ulta Beauty, Inc. (ULTA - Free Report) continued to demonstrate strength in its business performance, as it delivered strong fiscal first-quarter 2026 results, with net sales growth of 11.1%. Comparable sales increased 5.3%, reflecting a 3.7% increase in average ticket and a 1.6% increase in transactions. Management highlighted that the performance was broad-based, with all channels and major categories contributing positively to the overall results.
Fragrance remained the company’s strongest-performing category during the quarter, delivering high-teens comparable sales growth and increasing its contribution to total revenues from 11% to 12%. The company continued to make progress toward its goal of becoming the leading fragrance destination, supported by strong execution. Growth was primarily driven by newness from core luxury brands, early momentum from Balmain, and innovation, such as the new milk scent format from the exclusive brand NOYZ.
The haircare category delivered strong performance during the quarter, achieving high single-digit comparable sales growth, driven primarily by strength in prestige haircare. Growth was supported by new brands such as Amika and Moroccanoil, along with continued momentum from exclusive brand Cecred. Hair treatments, including repair-focused products and scalp regimens, outperformed, while weakness in traditional hair tools offset growth from innovative brands. The makeup category also posted low single-digit comp growth, led by prestige makeup and supported by new brand launches and innovation across key brands.
Based on the strong execution in the first quarter, Ulta Beauty maintained its fiscal 2026 guidance for sales and comparable sales growth. The company continues to expect net sales to increase between 6% and 7% for the year, while comparable sales growth is expected to remain within the range of 2.5% to 3.5%. Overall, Ulta Beauty’s broad-based category momentum, strong customer engagement and fragrance-led growth position the company to sustain comparable sales momentum ahead.
How Do Sally Beauty & Kohl’s Fare?
Sally Beauty Holdings, Inc. (SBH - Free Report) reported consolidated net sales of $903 million in the second quarter of fiscal 2026, reflecting 2.3% growth compared with the prior-year period. Consolidated comparable sales grew 1.3% in the quarter. For fiscal 2026, Sally Beauty tightened its net sales guidance range to $3.725-$3.75 billion from the previously guided range of $3.71-$3.77 billion, and expects comparable sales to be flat to up 1%.
Kohl’s Corporation (KSS - Free Report) reported a decline in first-quarter fiscal 2026 performance, with net sales decreasing 1.7% year over year to $3 billion. Comparable sales also decreased 1.1% in the first quarter, primarily driven by a decline in transactions. Kohl’s continues to expect comparable sales for the fiscal 2026 to be within the range of a 2% decrease to flat.
The Zacks Rundown for ULTA
The company’s shares have gained 3.8% in the past year against the industry’s 4.6% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.95, higher than the industry’s average of 14.45.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings per share implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
ULTA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.