Ulta Beauty Q4 Results Beat Estimates, Shares Drop on Guidance

Ulta Beauty Inc., the largest cosmetics retailer in the United States, reported stronger-than-expected fourth-quarter results but saw its shares plunge more than 10 percent on Monday following the release late Thursday. The decline came amid investor concerns over conservative guidance for fiscal 2026, extending recent losses to about 19 percent from a peak less than a month ago.

For the quarter ended February 1, Ulta Beauty posted earnings per share of $8.01, surpassing the consensus analyst estimate of $7.93 and exceeding the company's own forecast. Revenue reached $3.90 billion, an 11.8 percent increase from the prior year and above the $3.81 billion expected by analysts. Comparable-store sales rose 5.8 percent, with growth across all major product categories, including skincare, makeup and fragrance. Gross margins also outperformed projections, supported by lower inventory shrink and supply chain efficiencies.

Despite these positives, the market focused on fiscal 2026 projections, which management described as cautious. The company guided for comparable-sales growth of 2.5 to 3.5 percent, below Wall Street's midpoint expectations, and anticipated flat operating margins due...