- Full-Year Net Sales Growth: Achieved $12.4 billion in net sales, reflecting nearly 10% year-over-year growth.
- Operating Income & EPS Performance: Delivered $1.5 billion operating income (12.4% of sales) and $25.64 EPS, exceeding initial plans.
- Comparable Sales Growth: 5.4% comp sales growth driven by 4.2% higher average ticket and 1.6% more transactions, with 5.8% Q4 comp growth.
- Loyalty Program Expansion: Reached 46.7 million active loyalty members, with 60% of online sales transacted via the app.
Financial Highlights
Revenue growth was driven by a 5.8% increase in comparable sales, powered by a 4.2% lift in average ticket and a 1.6% rise in transaction volume. Despite a 10‑basis‑point margin dip due to channel mix shifts, gross margin was largely offset by reduced inventory shrink and supply‑chain efficiencies. SG&A rose 23% to $1.0 billion, largely from incentive compensation and Space NK integration costs.
Operational Execution
The holiday season proved resilient, with both store and digital channels contributing to growth: e‑commerce achieved mid‑teen comp growth while physical stores gained low‑single‑digit sales. Ulta expanded its footprint with 63 net new stores, 42 remodels, and 18 Space NK openings, ending the year with 1,505 locations. The loyalty program grew to 46.7 million active members, and app sales now account for roughly 60% of online revenue.
Strategic Initiatives
Ulta accelerated its “Unleashed” strategy, adding 100+ new brands—Moroccanoil, Morphe, Rare Beauty—and expanding wellness offerings. Digital upgrades, AI‑driven customer service, and a new “Beauty Happens Here” marketing campaign reinforced the omnichannel experience. The company’s investment in Space NK has broadened its skincare mix, now 24% of sales versus 35% for makeup.
2026 Outlook
Management forecasts 6–7% net sales growth with comp sales at 2.5–3.5% and operating margin flat to +20 bps. SG&A is expected to grow in line or slightly below sales, with double‑digit increases from Space NK integration and annualized investments. Ulta plans to prioritize productivity, personalization, and disciplined spend while expanding into K‑Beauty, wellness, and marketplace categories.
Valuation Assessment
With a P/S of 1.91 and EV/EBITDA of 13.78, Ulta trades at a modest premium for its high ROE of 44.07% and ROIC of 22.75%. The company’s free‑cash‑flow yield of 4.17% and low net debt/EBITDA of 0.95 underscore a strong balance sheet, positioning Ulta to capitalize on growth while maintaining financial flexibility.