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Ulta Beauty Shares Drop 8% After Sales Beat, Slight EPS Miss and Soft 2026 Outlook

Investors reacted to guidance that sits slightly below Wall Street estimates.

Overview

  • For the quarter ended Jan. 31, EPS was $8.01 versus $8.03 expected and revenue was $3.9 billion versus $3.80 billion expected, with net sales up 11.8% year over year.
  • Fiscal 2026 guidance calls for net sales growth of 6% to 7%, diluted EPS of $28.05 to $28.55, and same-store sales rising 2.5% to 3.5%.
  • The EPS guidance midpoint lands just under the Street’s $28.40 view, and the comps outlook trails some forecasts reported by Street Account.
  • Gross profit margin declined slightly as fixed expenses deleveraged against revenue, partially offset by lower inventory shrink and supply-chain efficiencies.
  • Shares fell about 8% in after-hours trading following the release, which was the first earnings report under CFO Christopher DelOrefice.