Ulta Beauty stock drops as company reports mixed earnings, gives 2026 guidance

Ulta Beauty reported earnings per share Thursday that missed expectations but revenue that topped what Wall Street was expecting.

Shares of the company sank roughly 8% in extended trading.

Here’s how the company performed for the fiscal fourth quarter ended Jan. 31 compared with what Wall Street expected, according to estimates from LSEG:

• Earnings per share: $8.01 vs. $8.03 expected
• Revenue: $3.9 billion vs. $3.80 billion expected

The company’s net sales grew 11.8% in the fourth quarter compared with the year-ago period. For the full fiscal 2025 year, Ulta reported a 9.7% increase in net sales to $12.4 billion.

The company said its gross profit as a percentage of net sales decreased slightly due in part to a deleveraging of fixed expenses and revenue, though that was offset by lower inventory shrink and supply chain efficiencies.

For fiscal 2026, Ulta said it expects net sales growth of 6% to 7% and diluted earnings per share of between $28.05 and $28.55. The midpoint of that EPS guidance, at $28.30, was slightly less than the $28.40 at the midpoint what analysts had expected for 2026.

It also projected 2026 same store sales of 2.5% to 3.5% compared with an estimate of up to 3.5%, according to Street Account.

Analysts had high expectations for the company’s earnings report. Oppenheimer analysts wrote in a Wednesday note that they expected Ulta’s Q4 results to be “solid.”

“Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies,” CEO Kecia Steelman said in a statement.

It’s the company’s first earnings report since Christopher DelOrefice became Ulta’s chief financial officer in early December.