Overview
- Ulta posted fourth-quarter net sales of $3.9 billion, up 11.8% and above forecasts, with EPS of $8.01 narrowly missing estimates.
- For fiscal 2026, the company guided net sales growth of 6% to 7%, comparable sales of 2.5% to 3.5%, and EPS of $28.05 to $28.55, a touch below consensus.
- Shares fell about 8% after hours and were down nearly 11% in Friday trading, erasing the stock’s year-to-date gains.
- SG&A rose sharply, including a 23% jump to $1 billion in the December quarter and a 17.4% increase to $3.30 billion for FY2025, with management expecting double-digit SG&A growth in the first half of FY2026 before easing later in the year.
- Growth efforts include the Space NK acquisition, a heavier mix of celebrity and premium labels, and a planned exclusive-brand assortment on TikTok Shop, as analysts cut price targets even as some highlight the pullback as a buying opportunity.