Ulta Beauty Q2 sales rise 8.9% to $3bn

Ulta Beauty's net sales rose 8.9% to $3bn in the second quarter of 2026. Comparable sales increased 3.8%, according to the company's financial report.

Gross profit reached $1.2bn, an 8.7% rise. However, as a percentage of net sales, gross profit decreased slightly to 39.1% from 39.2% a year earlier. The company attributed this primarily to the business mix impact of its Space NK acquisition.

K-Beauty Drives Growth

President and CEO Kecia Steelman revealed on an August 27 investor call that K-beauty demand bolstered sales growth. The retailer delivered double-digit K-beauty sales in Q2, with nearly half originating from products stocked exclusively by Ulta.

Steelman stated Ulta has been the US leader in K-beauty for the last 18 months and is accelerating its efforts. She emphasized the company's focus on bringing the best global beauty to the US and international markets.

However, Steelman offered a measured view of the K-beauty explosion. She warned the business could get caught up in "K-beauty hoopla" that is very fast fashion oriented. The company is also prioritizing other emerging markets like China, having recently onboarded Chinese brand Proya in August.

"It is not just about K-beauty anymore; I think C-beauty is also very important to us," Steelman said. She added that Ulta's merchants are responsible for curating brands with great formulations and strong efficiency to avoid the fast fashion trap.

Makeup Trends and Promotions

The makeup category has seen more middling growth in the first half of 2026. Mass cosmetics retail sales increased only 5% between January and July, according to data from market research firm Circana. This compares to categories like fragrance, which saw a 15% sales boom in H1.

Steelman argued the mass makeup performance reflects a lack of newness from some major brands as they lose strength from last year. Despite this, Ulta Beauty sees encouraging activity for the remainder of the year, including older face looks and more expressive eyes. The company is optimistic about newness entering the category in the back half of the year.

On promotional activity, Steelman said the overall environment ticked up a bit in both markets, and Ulta was slightly more promotional year-over-year. She explained value is an increasingly important consideration for customers facing economic uncertainty. The company aims to be strategic and thoughtful in its promotional plans to drive profitable growth.

Raised Financial Outlook

Following the robust second quarter, Ulta Beauty has increased its full-year guidance for 2026. The updated financial outlook is presented in the table below.

Steelman said the team delivered another impressive quarter of strong sales, profit, and earnings growth. She stated this demonstrates execution with discipline and translation of the Ulta Beauty 'Unleashed' strategy into tangible benefits. The raised guidance reflects confidence in the company's strategic priorities and ability to drive profitable growth in a dynamic environment.