In an economic environment where discretionary spending is under scrutiny, Ulta Beauty posted a 11.1% increase in sales to $3.2 billion in Q1 2026, while comparable sales grew 5.3%, a meaningful acceleration from the 2.9% comp posted in the same period last year.
The comp growth was driven by a 3.7% increase in average ticket and a 1.6% lift in transactions meaning consumers are buying more per visit, not just visiting more often. E-commerce delivered mid-teen comparable growth, while stores held at low-single-digit a channel split that confirms where transactions are increasingly happening.
In term of category performance, fragrance led with high-teen comps growth on the back of newness from core luxury brands and new scent formats. Haircare followed at high-single-digit growth, powered by prestige product and exclusive brands. Makeup, skincare and wellness, and services all posted positive but lower growth.
Gross margin expanded 100 basis points to 40.1%, primarily through lower inventory shrink and improved merchandise margin. Operating income grew 11.6% to $448.3 million.
The acquisition of Space NK is now fully embedded in the P&L. it contributed to the 14.6% SG&A increase, but it also added 87 international company-operated stores and a credible luxury footprint in the U.K. and Ireland. Ulta also opened 16 net new domestic stores, reaching 1,521 in the U.S., while expanding its marketplace to 325+ brands and 8,000+ SKUs.
The loyalty program reached approximately 46.9 million members, up 4% year-over-year a figure that matters far beyond retention, since it represents the scale of first-party data Ulta can activate for its retail media business, UB Media. The launch of a TikTok Shop channel this quarter signals that the company is actively competing for younger consumers at the point of discovery.
For the full year the company is expecting a growth of 10.6% to 12.3%.