Chicago, IL – [Insert Date] – Ulta Beauty Inc. has kicked off its fiscal year 2026 with a powerful display of e-commerce prowess, reporting significant double-digit growth in its online sales for the first quarter. This digital momentum demonstrably outpaced the performance of its physical stores, underscoring a strategic shift in consumer purchasing habits and Ulta’s commitment to evolving its digital landscape. The beauty retail giant saw its net sales climb 11.1% year over year to reach $3.16 billion, with overall comparable sales increasing by 5.3%.
The driving force behind this robust performance was Ulta’s e-commerce channel, which experienced comparable sales growth in the mid-teens. In contrast, physical stores saw a more modest increase in comparable sales, rising in the low single digits. This divergence highlights the accelerating importance of digital platforms in the beauty sector and Ulta’s strategic investments to capture this growing market share.
This digital acceleration is directly linked to Ulta’s proactive embrace of new technologies, most notably its strategic integration of artificial intelligence (AI) and its expansion onto emerging social commerce platforms. The company has been actively developing and deploying AI-powered features, including two new AI tools co-developed with Google. Furthermore, Ulta’s recent foray into TikTok Shop has already begun to yield promising results, signaling a forward-thinking approach to reaching consumers where they are most engaged.
Ulta Beauty, a recognized leader in the beauty and wellness retail space, holds a prominent position within the industry. It ranks No. 37 in the Digital Commerce 360 Top 2000 Database, a comprehensive ranking of North America’s leading online retailers by annual web sales. This places Ulta among the top five online retailers in the highly competitive Health & Beauty category, a testament to its established presence and ongoing innovation in the digital realm.
A Strong Fiscal Start Driven by Multi-Channel Strength
Kecia Steelman, Ulta’s President and CEO, expressed optimism about the company’s trajectory, stating, "Fiscal 2026 is off to a strong start, driven by broad-based growth across all channels and major categories." This statement reflects a well-rounded growth strategy that leverages the strengths of both its online and offline presence.
During the company’s earnings call, Steelman further elaborated on the e-commerce team’s success, noting, "The ecommerce team delivered another quarter of robust sales performance." This follows a trend of strong digital growth, with Ulta also reporting mid-teens e-commerce sales growth in its fiscal Q4. Steelman attributed this sustained strength to "the investments we’ve made over the last several years to elevate our infrastructure and the ongoing enhancements we’re continuing to roll out."
These digital enhancements are not merely cosmetic; they represent significant strategic expansions designed to meet evolving consumer demands. Ulta has been actively broadening its fulfillment options to provide greater convenience and speed. A notable development in May was Ulta’s integration into the Uber Eats marketplace, a move that instantly expanded its same-day delivery capabilities to over 1,500 U.S. stores. This partnership allows shoppers to receive their beauty essentials with unprecedented speed and flexibility, whether opting for immediate delivery or scheduling orders in advance.
Beyond delivery, Ulta has also been innovating its payment options to enhance the checkout experience. Earlier this month, the retailer partnered with Klarna, introducing buy now, pay later (BNPL) options across Ulta.com and its mobile app. This integration empowers shoppers with more flexible payment solutions, allowing them to split purchases into interest-free installments or manage larger orders with tailored financing.
Steelman also emphasized the crucial role of Ulta’s robust omnichannel capabilities, including its popular buy online, pick up in store (BOPIS) service. She identified these integrated services as key drivers not only of e-commerce growth but also of enhanced guest satisfaction, demonstrating a seamless blend of digital convenience and physical accessibility.
Pioneering the Future: Ulta’s AI and Loyalty Initiatives
Ulta Beauty is making significant strides in its commitment to leveraging artificial intelligence (AI) to revolutionize the customer experience. The company’s strategic push into AI is designed to enhance personalization, streamline shopping journeys, and foster deeper customer engagement.
In April, Ulta launched an innovative customer-facing AI assistant named "Ulta AI." Available on both Ulta.com and the company’s mobile app, this new AI shopping assistant is built upon Google’s Gemini Enterprise for Customer Experience. Steelman reported that "Initial results have been promising, and we are excited about the potential of this new feature." This sentiment underscores the early success and the significant future potential envisioned for AI-driven customer interactions.
The company’s AI strategy extends beyond its own platforms. Ulta has actively partnered with leading AI platforms like Google to enable "agentic commerce." In April, Ulta rolled out integrated functionality within Google’s AI Mode in Search and the Gemini app. This groundbreaking integration allows consumers to seamlessly search for, compare, and purchase Ulta products directly through Google’s conversational interfaces, further embedding Ulta into the broader digital ecosystem. Steelman acknowledged the nascent stage of these initiatives, stating, "We are still in the early days and are focused on leveraging the strengths of our partners to maximize the AI opportunity."
Furthermore, Ulta is adeptly leveraging its "vast first-party data" and recent technology upgrades to drive enhanced personalization. The company’s teams are utilizing loyalty data to gain deeper insights into shopping behaviors, enabling them to predict when customers might need product refills and to optimize digital cart conversions. This data-driven approach ensures that Ulta’s marketing and product offerings are highly relevant and tailored to individual customer needs.
The strength of Ulta’s loyalty program remains a cornerstone of its customer engagement strategy. During the first quarter, the Ulta Beauty Rewards loyalty program saw continued expansion, reaching nearly 47 million active members, a 4% increase year over year. This growing base of loyal customers provides a rich source of data and a highly engaged audience for Ulta’s personalized marketing efforts.
Early Successes and Strategic Vision for TikTok Shop
Ulta Beauty’s strategic expansion into social commerce is gaining traction with the early results from its storefront on TikTok Shop. Officially launched during the first quarter, the partnership has focused initially on "a strategic focus on our Only at Ulta exclusive brands," as highlighted by Steelman. This targeted approach aims to leverage the unique appeal of Ulta’s proprietary brands to capture the attention of TikTok’s vast and engaged user base.
Responding to inquiries on the earnings call, Steelman clarified that the TikTok Shop initiative is "not just an ecomm play" and has the potential to create a positive "halo impact for physical stores." She further elaborated, "We think it’s complementary of our ecomm business, and we do think it can bring a new guest in." This indicates a holistic view of social commerce, recognizing its potential to drive both online sales and brand awareness that can translate to in-store traffic.
As the TikTok Shop remains in its nascent stages, Ulta’s future focus areas include expanding exclusive product bundles and offering early access to new product launches in collaboration with brand partners. This strategy aims to create compelling reasons for consumers to engage with Ulta on the platform and to foster a sense of exclusivity and excitement.
Looking ahead, Ulta envisions TikTok Shop as a critical tool for customer acquisition, particularly among younger demographics. The platform is expected to play a significant role in expanding Ulta’s customer database and enriching its loyalty ecosystem. To further solidify this vision, Ulta hosted its first-ever shoppable livestream on TikTok Shop on April 16, coinciding with its Ulta Beauty World 2026 event. This innovative livestream garnered over 5 million impressions and generated strong gross merchandise value (GMV), demonstrating the platform’s potential for driving sales and engagement. Steelman noted the significant positive reception, stating, "This initiative is driving a lot of excitement with guests and the creator community, which is showing high interest in collaborating with us."
Ulta Beauty’s Q1 Financial Performance: A Detailed Look
Ulta’s first-quarter financial results paint a clear picture of its sustained growth and the factors contributing to its success. The reported 5.3% comparable sales growth was a result of a 3.7% increase in average ticket value, meaning customers spent more per transaction, and a 1.6% increase in the number of transactions, indicating more customers were making purchases.
Beyond the overall comparable sales growth, the company attributed the significant jump in net sales to several key factors, including the opening of new Ulta Beauty stores and the strategic acquisition of British beauty retailer Space NK in July 2025. Chief Financial Officer Christopher DelOrefice noted that, excluding the impact of the Space NK acquisition, total sales growth would have reached the high single-digit range, highlighting the organic strength of Ulta’s core business.
Other revenue streams also saw positive contributions. "Other revenue" increased by $6 million to $62 million, primarily driven by higher income generated from the company’s credit card program and commissions earned through its UB Marketplace. The UB Marketplace, launched in October, has been instrumental in expanding Ulta’s online inventory to include wellness and lifestyle categories, further diversifying its product offering and revenue sources.
However, these revenue gains were partially offset by a reduction in royalty income from Ulta’s shop-in-shop partnership with Target Corp. The companies mutually agreed last year not to renew the agreement, which is scheduled to conclude in August. Until then, the "Ulta Beauty at Target" experience will continue to operate in both stores and online, maintaining its presence for consumers.
Ulta Beauty’s Financial Outlook and Strategic Investments for Fiscal Year 2026
Looking ahead, Ulta Beauty remains strategically focused on expanding its U.S. business through a dual approach of strengthening its product assortment and investing in its physical store presence. The company’s commitment to innovation is evident in its plans for a "highly experiential" flagship store in New York City’s bustling Times Square, scheduled to open in late 2027. This flagship location is envisioned as a hub for "immersive guest experiences and brand activations," promising to redefine the in-store beauty shopping experience.
Simultaneously, Ulta plans to scale its digital initiatives to deepen consumer engagement and capitalize on emerging trends. The company will continue to prioritize investments in AI, personalization, and social commerce, recognizing these as critical drivers of future growth and customer loyalty. Furthermore, Ulta aims to scale its newer business ventures, including international expansion, its growing wellness offerings, and its UB Media capabilities, positioning itself for sustained growth across diverse market segments.
For the full fiscal year 2026, Ulta has maintained its financial outlook, projecting net sales growth between 6% and 7%. The company anticipates full-year comparable sales to rise between 2.5% and 3.5%, reflecting a balanced approach to growth across all its channels. This forecast underscores Ulta’s confidence in its strategic initiatives and its ability to navigate the dynamic retail landscape effectively.
In the first quarter of fiscal year 2026, Ulta continued its physical expansion by opening 16 net new Ulta Beauty stores and one new Space NK location, demonstrating its ongoing commitment to meeting customers where they are.
