Ulta Beauty expects slower sales growth in fiscal 2026

US-based speciality retailer Ulta Beauty has reported fiscal 2025 (FY25) income maturation but forecast a slower maturation successful FY26.

In FY25, which ended 31 January 2026, nett income roseate 9.7% to $12.39bn, chiefly driven by comparable income growth, Space NK, and gross from caller store openings.

Comparable income roseate 5.4%, supported by a 3.3% summation successful mean summons and a 2% assistance successful transactions.

Full-year operating income came to $1.53bn, down from $1.56bn, representing 12.4% of nett sales.

Net income fell to $1.15bn from $1.20bn a twelvemonth earlier.

Merchandise inventories accrued 10.8% to $2.18bn, which Ulta linked to banal for caller marque launches, Space NK and 60 nett caller stores.

Capital expenditure totalled $434.8m, going towards caller stores, relocations and remodels, arsenic good arsenic IT spending and proviso concatenation optimisation.

In the 4th quarter, nett income accrued 11.8% to $3.89bn.

Comparable income precocious 5.8%, reflecting a 4.2% emergence successful mean summons and a 1.6% summation successful transactions.

Operating income for the 4th was $476.9m, compared with $516.3m a twelvemonth earlier, and equated to 12.2% of nett sales.

Quarterly nett income declined to $356.6m from $393.2m successful the prior-year period.

Ulta Beauty president and CEO Kecia Steelman said: “The Ulta Beauty squad closed the twelvemonth with momentum, delivering beardown 4th fourth and full-year income and continued marketplace stock gains.

“Looking ahead, we are well-positioned for sustainable, profitable maturation successful 2026 and beyond and are excited to physique connected our successes to widen our presumption arsenic the unmatched quality and wellness destination for each guests crossed each ages and beingness stages.”

For FY26, the quality retailer expects nett income to emergence 6% to 7% and comparable income maturation of 2.5% to 3.5%.

Ulta besides guided to operating income maturation of 6% to 9%, with diluted net per stock expected to travel successful betwixt $28.05 and $28.55.

"Ulta Beauty expects slower income maturation successful fiscal 2026" was primitively created and published by Retail Insight Network, a GlobalData owned brand.

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