Ulta Beauty's fourth-quarter revenue beat estimates on strong comparable sales, but fiscal 2026 guidance suggests a slowdown.

Ulta Beauty reported fourth-quarter net sales of $3.9 billion, an 11.8% year-over-year increase, and diluted EPS of $8.01. The results surpassed analyst expectations for both revenue and earnings, driven by better-than-anticipated comparable sales growth.

Key Highlights

• Comparable sales increased 5.8% for the quarter, significantly outpacing the 4.3% analyst consensus, driven by a 4.2% rise in average ticket and a 1.6% increase in transactions.
• Operating margin compressed to 12.2% from 14.8% in the prior-year period, attributed to higher selling, general and administrative (SG&A) expenses which rose to 25.7% of sales from 23.4% a year ago.
• The company provided initial fiscal 2026 guidance, projecting comparable sales growth to slow to a range of 2.5% to 3.5% and diluted EPS between $28.05 and $28.55.