"Ulta Beauty (NASDAQ: ULTA) reported third quarter fiscal 2026 results after market close on December 4, 2025, and investors liked what they saw. The company beat both earnings and revenue estimates by comfortable margins. EPS came in at $5.14, crushing the consensus estimate of $4.60 by 11.7%. Revenue hit $2.90 billion, topping expectations of $2.70 billion by 7.3%. The stock had been trading near 52-week highs heading into the print, up 40% over the past year."
"Revenue growth of 12.9% year over year tells most of the story. Comparable sales rose 6.3%, driven by a 3.8% increase in average ticket and a 2.4% lift in transactions. That's balanced growth. You're seeing both higher spending per visit and more customers coming through the door. Cosmetics accounted for 41% of net sales, while skincare and wellness made up 24%. The Space NK acquisition contributed to the top line, as did new store openings and ecommerce expansion."
"Operating income fell 4.3% to $309.4 million despite the revenue beat. SG&A expenses rose faster than sales, eating into profitability at the operating level. Net income declined 4.7% to $230.9 million. The company is investing in growth, but you'll want to watch whether expense discipline returns in Q4. If margins don't stabilize, the strong top line performance won't translate to bottom line gains."
Ulta Beauty delivered a fiscal Q3 beat with adjusted EPS of $5.14 and revenue of $2.90 billion, up 12.9% year over year. Comparable sales rose 6.3% on a 3.8% average-ticket increase and a 2.4% transaction lift. Cosmetics represented 41% of net sales while skincare and wellness accounted for 24%; Space NK, new stores, and ecommerce expansion supported growth. Gross profit increased 19.3% to $1.20 billion and margin expanded to 40.4%. Operating income and net income declined (to $309.4M and $230.9M) as SG&A rose faster than sales amid ongoing investment spending.
Read at 24/7 Wall St.
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