# Ulta Beauty, Inc. (ULTA)

Informational only - not investment advice.

CIK: 0001403568
SIC: 5990 Retail-Retail Stores, NEC
SIC breadcrumb: [Retail Trade](/division/G/) > [Miscellaneous Retail](/major-group/59/) > [SIC 5990 Retail-Retail Stores, NEC](/industry/5990/)
Latest 10-K filed: 2026-03-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1403568
Filing source: https://www.sec.gov/Archives/edgar/data/1403568/000110465926035243/ulta-20260131x10k.htm

## At a glance

FY2026 · period end 2026-01-31 · filed 2026-03-26 · accession 0001104659-26-035243 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001403568.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 12,392,820,000 USD | 2026 | verified |
| Net income | 1,153,479,000 USD | 2026 | verified |
| Assets | 6,999,294,000 USD | 2026 | verified |
| Free cash flow | 1,067,951,000 USD | 2026 | computed |
| Net margin | 9.31% | 2026 | computed |
| Operating margin | 12.37% | 2026 | computed |
| Revenue YoY | +9.71% | 2026 | computed |
| ROE | 41.14% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ULTA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 9.3% | 2.7% | 87 | 32 |
| Operating margin | 12.4% | 4.5% | 93 | 30 |
| Revenue growth | 9.7% | 6.6% | 74 | 32 |
| FCF margin | 8.6% | 3.7% | 83 | 31 |
| ROE | 41.1% | 11.4% | 96 | 28 |
| ROA | 16.5% | 4.9% | 97 | 32 |
| Liabilities / equity | 1.50 | 1.50 | 48 | 28 |
| Current ratio | 1.41 | 1.41 | 52 | 32 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 59 Miscellaneous Retail, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 12392820000 | USD | 2026 | 2026-03-26 |
| Net income | 1153479000 | USD | 2026 | 2026-03-26 |
| Assets | 6999294000 | USD | 2026 | 2026-03-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001403568.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 4,854,737,000 | 5,884,506,000 | 6,716,615,000 | 7,398,068,000 | 6,151,953,000 | 8,630,889,000 | 10,208,580,000 | 11,207,303,000 | 11,295,654,000 | 12,392,820,000 |
| Net income | 409,760,000 | 555,234,000 | 658,559,000 | 705,945,000 | 175,835,000 | 985,837,000 | 1,242,408,000 | 1,291,005,000 | 1,201,118,000 | 1,153,479,000 |
| Operating income | 654,824,000 | 785,291,000 | 854,080,000 | 901,094,000 | 236,820,000 | 1,297,492,000 | 1,638,610,000 | 1,678,029,000 | 1,564,972,000 | 1,532,992,000 |
| Gross profit | 1,747,229,000 | 2,096,809,000 | 2,409,311,000 | 2,681,064,000 | 1,949,159,000 | 3,368,554,000 | 4,044,510,000 | 4,381,100,000 | 4,387,253,000 | 4,845,224,000 |
| Diluted EPS | 6.52 | 8.96 | 10.94 | 12.15 | 3.11 | 17.98 | 24.01 | 26.03 | 25.34 | 25.64 |
| Operating cash flow | 634,385,000 | 779,366,000 | 956,127,000 | 1,101,293,000 | 810,355,000 | 1,059,265,000 | 1,481,915,000 | 1,476,266,000 | 1,338,605,000 | 1,502,780,000 |
| Capital expenditures | 373,447,000 | 440,714,000 | 319,400,000 | 298,534,000 | 151,866,000 | 172,187,000 | 312,126,000 | 435,267,000 | 374,458,000 | 434,829,000 |
| Share buybacks | 344,275,000 | 367,581,000 | 616,194,000 | 680,979,000 | 114,895,000 | 1,521,925,000 | 900,033,000 | 995,738,000 | 1,003,328,000 | 901,388,000 |
| Assets | 2,551,878,000 | 2,908,687,000 | 3,191,172,000 | 4,863,872,000 | 5,089,969,000 | 4,764,379,000 | 5,370,411,000 | 5,707,011,000 | 6,001,693,000 | 6,999,294,000 |
| Liabilities | 1,001,660,000 | 1,134,470,000 | 1,370,954,000 | 2,961,778,000 | 3,090,420,000 | 3,229,006,000 | 3,410,600,000 | 3,427,683,000 | 3,513,340,000 | 4,195,843,000 |
| Stockholders' equity | 1,550,218,000 | 1,774,217,000 | 1,820,218,000 | 1,902,094,000 | 1,999,549,000 | 1,535,373,000 | 1,959,811,000 | 2,279,328,000 | 2,488,353,000 | 2,803,451,000 |
| Cash and cash equivalents | 385,010,000 | 277,445,000 | 409,251,000 | 392,325,000 | 1,046,051,000 | 431,560,000 | 737,877,000 | 766,594,000 | 703,201,000 | 424,243,000 |
| Free cash flow | 260,938,000 | 338,652,000 | 636,727,000 | 802,759,000 | 658,489,000 | 887,078,000 | 1,169,789,000 | 1,040,999,000 | 964,147,000 | 1,067,951,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 8.44% | 9.44% | 9.80% | 9.54% | 2.86% | 11.42% | 12.17% | 11.52% | 10.63% | 9.31% |
| Operating margin | 13.49% | 13.35% | 12.72% | 12.18% | 3.85% | 15.03% | 16.05% | 14.97% | 13.85% | 12.37% |
| Return on equity | 26.43% | 31.29% | 36.18% | 37.11% | 8.79% | 64.21% | 63.39% | 56.64% | 48.27% | 41.14% |
| Return on assets | 16.06% | 19.09% | 20.64% | 14.51% | 3.45% | 20.69% | 23.13% | 22.62% | 20.01% | 16.48% |
| Liabilities / equity | 0.65 | 0.64 | 0.75 | 1.56 | 1.55 | 2.10 | 1.74 | 1.50 | 1.41 | 1.50 |
| Current ratio | 2.90 | 2.64 | 2.32 | 1.81 | 1.87 | 1.46 | 1.61 | 1.71 | 1.70 | 1.41 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001403568.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-07-30 |  |  | 5.70 | reported discrete quarter |
| 2022-Q3 | 2022-10-29 |  |  | 5.34 | reported discrete quarter |
| 2023-Q1 | 2023-04-29 |  |  | 6.88 | reported discrete quarter |
| 2023-Q2 | 2023-04-29 |  | 347,051,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-07-29 | 2,529,809,000 |  | 6.02 | reported discrete quarter |
| 2023-Q3 | 2023-07-29 |  | 300,102,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-10-28 | 2,488,933,000 |  | 5.07 | reported discrete quarter |
| 2023-Q4 | 2024-02-03 | 3,554,298,000 | 394,369,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-05-04 | 2,725,848,000 | 313,113,000 | 6.47 | reported discrete quarter |
| 2024-Q2 | 2024-05-04 |  | 313,113,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-08-03 | 2,552,087,000 |  | 5.30 | reported discrete quarter |
| 2024-Q3 | 2024-08-03 |  | 252,556,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-11-02 | 2,530,100,000 |  | 5.14 | reported discrete quarter |
| 2024-Q4 | 2025-02-01 | 3,487,619,000 | 393,270,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-05-03 | 2,848,367,000 | 305,052,000 | 6.70 | reported discrete quarter |
| 2025-Q2 | 2025-05-03 |  | 305,052,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-08-02 | 2,788,469,000 |  | 5.78 | reported discrete quarter |
| 2025-Q3 | 2025-08-02 |  | 260,875,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-11-01 | 2,857,623,000 |  | 5.14 | reported discrete quarter |
| 2025-Q4 | 2026-01-31 | 3,898,361,000 | 356,677,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-05-02 | 3,163,857,000 | 340,469,000 | 7.74 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ULTA's latest 10-K: [/company/ULTA/business/](/company/ULTA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ULTA's latest 10-K: [/company/ULTA/risk-factors/](/company/ULTA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1403568/000110465926069491/ulta-20260502x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-06-02
Report date: 2026-05-02

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this Quarterly Report. This discussion contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to, among other things, future events and financial performance. These forward-looking statements are included throughout this Quarterly Report on Form 10-Q, and relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity, and capital resources and other financial and operating information. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “plans,” “estimates,” “targets,” “strategies,” or other comparable words.

Any forward-looking statements contained in this Quarterly Report on Form 10-Q are based upon our historical performance and on current plans, estimates, and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, targets, strategies, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to those described under Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended January 31, 2026, as such risk factors may be updated from time to time in our periodic filings with the U.S. Securities and Exchange Commission (“SEC”), and are accessible on the SEC's website at www.sec.gov.

Any forward-looking statements made by us in this Quarterly Report on Form 10-Q speak only as of the date of this Quarterly Report and are expressly qualified in their entirety by the cautionary statements included in this Quarterly Report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. Except to the extent required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

References in the following discussion to “we,” “us,” “our,” “Ulta Beauty,” the “Company” and similar references mean Ulta Beauty, Inc. and its consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires.

Overview

We were founded in 1990 as a beauty retailer at a time when prestige, mass, and salon products were sold through distinct channels – department stores for prestige products; drug stores and mass merchandisers for mass products; and salons and authorized retail outlets for professional hair care products. We developed a unique specialty retail concept

16

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that offers a broad range of brands and price points, select beauty services, and a convenient and welcoming shopping environment. We define our target consumer as a beauty enthusiast, a consumer who is passionate about the beauty category, uses beauty for self-expression, experimentation, and self-investment, and has high expectations for their shopping experience. Based on our consumer insights research, we estimate there are approximately 140 million beauty enthusiasts in the U.S. We believe our strategy provides us with competitive advantages that have contributed to our financial performance.

Today, our U.S. operations (“Ulta U.S.”) make us the largest specialty beauty retailer in the United States and the premier beauty destination for cosmetics, fragrance, skin care, bath and body products, hair care, salon styling tools, wellness products, and salon services. In addition to our U.S. operations, we are expanding our presence internationally through our subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland, our joint venture in Mexico, and our franchise in the Middle East.

Key points of strategic differentiation include: a differentiated assortment of established and emerging brands across a variety of categories and price points; our convenient omnichannel footprint, offering products and delivering immersive and personalized experiences through our stores and digital platforms, and providing the Ulta Beauty experience internationally through our partnerships; our best-in-class loyalty program that enables members to earn points for products and beauty services and provides us with a deep understanding of our customers and their preferences; and our ability to cultivate human connection with warm and welcoming guest experiences across all of our channels.

The continued growth of our business and any future increases in net sales, net income, and cash flows is dependent on our ability to execute our strategic priorities across three foundational focus areas, as outlined in our Ulta Beauty Unleashed strategy: 1) Drive Core Business Growth through operational excellence and an elevated go-to-market approach; 2) Scale New, Accretive Businesses by capitalizing on key growth opportunities to ensure relevancy in a rapidly changing world; and 3) Align Our Foundation for Future Success by optimizing our ways of working, streamlining our cost structure, and cultivating an engaging, associate-centered culture. Ulta U.S. operates in the large and growing U.S. beauty products and salon services industry, and we believe our strong operating model, competitive advantages, and financial foundation, paired with our investments to drive our growth, position us to capture additional market share in the industry.

Comparable sales is a key metric that is monitored closely within the retail industry. Our comparable sales have fluctuated in the past, and we expect them to continue to fluctuate in the future. A variety of factors affect our comparable sales, including general economic conditions, changes in merchandise strategy or mix, and timing and effectiveness of our marketing activities, among others.

Over the long term, our growth strategy is to drive profitable growth and market share leadership in beauty and wellness through growing our comparable sales, expanding omnichannel capabilities, and opening new stores. Long-term operating profit is expected to increase as a result of our efforts to drive revenue growth, leverage fixed costs, increase operating efficiencies, and grow other revenue, partially offset by incremental investments to enhance the guest experience, people, assortment, advertising, and depreciation.

Current Trends

Industry trends

The overall U.S. beauty market expanded in 2025 and the first quarter of 2026, supported by ongoing consumer engagement with and resilience in the beauty category. We remain confident that our differentiated and diverse business model, our commitment to strategic investments, and our highly engaged associates will continue to drive market share gains in the U.S. beauty category over the long term.

​

17

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Impact of inflation and other macroeconomic trends

Persistent inflationary and macroeconomic pressures have impacted consumer spending habits broadly. The continuation of inflationary and macroeconomic pressures could impact our ability to grow sales and maintain historical profitability levels. In addition, inflation could cause the interest rates on any debt to remain at an elevated level or increase.

Basis of presentation

The Company has one reportable segment, which includes retail stores, salon services, and e-commerce.  

We recognize merchandise revenue at the point of sale in our retail stores. E-commerce sales are recognized upon shipment or guest pickup of the merchandise based on meeting the transfer of control criteria. Retail store and e-commerce sales are recorded net of estimated returns. Shipping and handling are treated as costs to fulfill the contract and not a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales at the time control of the merchandise passes to the guest, which is at the time of shipment or guest pickup. We provide refunds for merchandise returns within 30 days from the original purchase date. State sales taxes are presented on a net basis as we consider ourselves a pass-through conduit for collecting and remitting state sales tax. Salon service revenue is recognized at the time the service is provided to the guest. Gift card sales revenue is deferred until the guest redeems the gift card. Company coupons and other incentives are recorded as a reduction of net sales. Other revenue includes private label and co-branded credit card programs, deferred revenue related to the loyalty program and gift card breakage, and royalties.

​

Comparable sales reflect sales for stores and e-commerce platforms beginning on the first day of the 14th month of operation. Therefore, a store is included in our comparable store base on the first day of the period after one year of operations plus the initial one-month grand opening period. Non-comparable store sales include sales from new stores that have not yet completed their 13th month of operation and stores that were closed for part or all of the period in either year. Remodeled stores are included in comparable sales unless the store was closed for a portion of the current or prior period. Comparable sales include retail sales, salon services, and e-commerce. In fiscal years with 53 weeks, the 53rd week of comparable sales is included in the calculation. In the year following a 53-week year, the prior year period is shifted by one week to compare similar calendar weeks. There may be variations in the way in which some of our competitors and other retailers calculate comparable or same store sales.

Measuring comparable sales allows us to evaluate the performance of our store base as well as several other aspects of our overall strategy. Several factors could positively or negatively impact our comparable sales results:

[[GREPCENT_TABLE]]
[["","\u25cf","the general national, regional, and local economic conditions and corresponding impact on customer spending levels;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the introduction of new products or brands;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the location of new stores in existing store markets;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","competition / alternative distribution channels;"]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1403568/000110465926035243/ulta-20260131x10k.htm
Complete FY 2026 MD&A: /company/ULTA/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-26
Report date: 2026-01-31

Item 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations

​

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this Annual Report on Form 10-K.

Overview

We were founded in 1990 as a beauty retailer at a time when prestige, mass, and salon products were sold through distinct channels – department stores for prestige products; drug stores and mass merchandisers for mass products; and salons and authorized retail outlets for professional hair care products. We developed a unique specialty retail concept that offers a broad range of brands and price points, select beauty services, and a convenient and welcoming shopping environment. We define our target consumer as a beauty enthusiast, a consumer who is passionate about the beauty category, uses beauty for self-expression, experimentation, and self-investment, and has high expectations for the shopping experience. Based on our consumer insights research, we estimate there are approximately 140 million beauty enthusiasts in the U.S. We believe our strategy provides us with competitive advantages that have contributed to our financial performance.

Today, our U.S. operations (“Ulta U.S.”) make us the largest specialty beauty retailer in the United States and the premier beauty destination for cosmetics, fragrance, skin care, bath and body products, hair care, salon styling tools, wellness products, and salon services. In addition to our U.S. operations, we are expanding our presence internationally through our subsidiary, Space NK, a luxury beauty retailer operating in the U.K. and Ireland, our joint venture in Mexico, and our franchise in the Middle East.

Key points of strategic differentiation include: a differentiated assortment of established and emerging brands across a variety of categories and price points; our convenient omnichannel footprint, offering products through our stores, delivering immersive and personalized experiences through our digital platforms, and providing the Ulta Beauty experience internationally through our partnerships; our best-in-class loyalty program that enables members to earn points for products and beauty services and provides us with a deep understanding of our customers and their preferences; and our ability to cultivate human connection with warm and welcoming guest experiences across all of our channels.

The continued growth of our business and any future increases in net sales, net income, and cash flows is dependent on our ability to execute our strategic priorities across three foundational focus areas, as outlined in our Ulta Beauty Unleashed strategy: 1) Drive Core Business Growth through operational excellence and an elevated go-to-market approach; 2) Scale New, Accretive Businesses by capitalizing on key growth opportunities to ensure relevancy in a rapidly changing world; and 3) Align Our Foundation for Future Success by optimizing our ways of working, streamlining our cost structure, and cultivating an engaging, associate-centered culture. Ulta U.S. operates in the large and growing U.S. beauty products and salon services industry, and we believe our strong operating model, competitive advantages, and financial foundation, paired with our investments to drive our growth, position us to capture additional market share in the industry.

Comparable sales is a key metric that is monitored closely within the retail industry. Our comparable sales have fluctuated in the past, and we expect them to continue to fluctuate in the future. A variety of factors affect our comparable sales, including general economic conditions, changes in merchandise strategy or mix, and timing and effectiveness of our marketing activities, among others.

Over the long term, our growth strategy is to drive profitable growth and market share leadership in beauty and wellness through growing our comparable sales, expanding omnichannel capabilities, and opening new stores. Long-term operating profit is expected to increase as a result of our efforts to drive revenue growth, leverage fixed costs, increase

35

Table of Contents

operating efficiencies, and grow other revenue, partially offset by incremental investments to enhance the guest experience, people, assortment, advertising, and depreciation.

Current Trends

Industry trends

​

The overall U.S. beauty market expanded in 2024 and 2025, supported by ongoing consumer engagement with and resilience in the beauty category. We remain confident that our differentiated and diverse business model, our commitment to strategic investments, and our highly engaged associates will continue to drive market share gains in the U.S. beauty category over the long term.

​

Impact of inflation and other macroeconomic trends

Persistent inflationary and macroeconomic pressures have impacted consumer spending habits broadly. The continuation of inflationary and macroeconomic pressures could impact our ability to grow sales and maintain historical profitability levels. In addition, inflation could cause the interest rates on any debt to remain at an elevated level or increase.

​

Basis of presentation

​

The Company has one reportable segment, which includes retail stores, salon services, and e-commerce.

We recognize merchandise revenue at the point of sale in our retail stores. E-commerce sales are recognized upon shipment or guest pickup of the merchandise based on meeting the transfer of control criteria. Retail store and e-commerce sales are recorded net of estimated returns. Shipping and handling are treated as costs to fulfill the contract and not a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales at the time control of the merchandise passes to the guest, which is at the time of shipment or guest pickup. We provide refunds for merchandise returns within 30 days from the original purchase date. State sales taxes are presented on a net basis as we consider ourselves a pass-through conduit for collecting and remitting state sales tax. Salon service revenue is recognized at the time the service is provided to the guest. Gift card sales revenue is deferred until the guest redeems the gift card. Company coupons and other incentives are recorded as a reduction of net sales. Other revenue includes private label and co-branded credit card programs, deferred revenue related to the loyalty program and gift card breakage, and royalties.

​

Comparable sales reflect sales for stores and e-commerce platforms beginning on the first day of the 14th month of operation. Therefore, a store is included in our comparable store base on the first day of the period after one year of operations plus the initial one-month grand opening period. Non-comparable store sales include sales from new stores that have not yet completed their 13th month of operation and stores that were closed for part or all of the period in either year. Remodeled stores are included in comparable sales unless the store was closed for a portion of the current or prior period. Comparable sales include retail sales, salon services, and e-commerce. In fiscal years with 53 weeks, the 53rd week of comparable sales is included in the calculation. In the year following a 53-week year, the prior year period is shifted by one week to compare similar calendar weeks. There may be variations in the way in which some of our competitors and other retailers calculate comparable or same store sales.

Measuring comparable sales allows us to evaluate the performance of our store base as well as several other aspects of our overall strategy. Several factors could positively or negatively impact our comparable sales results:

[[GREPCENT_TABLE]]
[["","\u25cf","the general national, regional, and local economic conditions and corresponding impact on customer spending levels;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the introduction of new products or brands;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the location of new stores in existing store markets;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","competition / alternative distribution channels;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to respond on a timely basis to changes in consumer preferences;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the effectiveness of our various merchandising and marketing activities; and"]]
[[/GREPCENT_TABLE]]

36

Table of Contents

[[GREPCENT_TABLE]]
[["","\u25cf","the number of new stores opened and the impact on the average age of all of our comparable stores."]]
[[/GREPCENT_TABLE]]

Cost of sales includes:

[[GREPCENT_TABLE]]
[["","\u25cf","the cost of merchandise sold, offset by vendor income that is not a reimbursement of specific, incremental, and identifiable costs;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","distribution costs including labor and related benefits, freight, rent, depreciation and amortization, real estate taxes, utilities, and insurance;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","shipping and handling costs for e-commerce orders;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","retail store occupancy costs including rent, depreciation and amortization, real estate taxes, utilities, repairs and maintenance, insurance, and licenses;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","salon services payroll and benefits; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","shrink and inventory valuation reserves."]]
[[/GREPCENT_TABLE]]

Our cost of sales may be negatively impacted as we open new stores. Changes in our merchandise or channel mix may also have an impact on cost of sales. This presentation of items included in cost of sales may not be comparable to the way in which our competitors or other retailers compute their cost of sales.

Selling, general and administrative (SG&A) expenses include:

[[GREPCENT_TABLE]]
[["","\u25cf","payroll, bonus, and benefit costs for retail store and corporate employees;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","advertising and marketing costs, offset by vendor income that is a reimbursement of specific, incremental, and identifiable costs;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","occupancy costs related to our corporate office facilities;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","stock-based compensation expense;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","depreciation and amortization for all assets, except those related to our retail stores and distribution operations, which are included in cost of sales; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","legal, finance, information systems, and other corporate overhead costs."]]
[[/GREPCENT_TABLE]]

This presentation of items in selling, general and administrative expenses may not be comparable to the way in which our competitors or other retailers compute their selling, general and administrative expenses.

Pre-opening expenses include non-capital expenditures during the period prior to store opening for new, remodeled, and relocated stores including rent during the construction period for new and relocated stores, store set-up labor, management and employee training, and grand opening advertising.

Interest income represents interest from cash equivalents, which includes highly liquid investments such as money market funds and certificates of deposit with an original maturity of three months or less from the date of purchase. Interest expense includes interest costs and facility fees associated with our credit facilities. Our credit facility interest rates are based on a variable rate structure which can result in increased cost in periods of rising or elevated intere

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/ULTA/mda/fy2026/
All MD&A years: /company/ULTA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/ULTA/mda/fy2025/): filed 2025-03-27; accession 0001558370-25-003810 (https://www.sec.gov/Archives/edgar/data/1403568/000155837025003810/ulta-20250201x10k.htm)
- [FY 2024 MD&A](/company/ULTA/mda/fy2024/): filed 2024-03-26; accession 0001558370-24-003941 (https://www.sec.gov/Archives/edgar/data/1403568/000155837024003941/ulta-20240203x10k.htm)
- [FY 2023 MD&A](/company/ULTA/mda/fy2023/): filed 2023-03-24; accession 0001558370-23-004581 (https://www.sec.gov/Archives/edgar/data/1403568/000155837023004581/ulta-20230128x10k.htm)
- [FY 2022 MD&A](/company/ULTA/mda/fy2022/): filed 2022-03-25; accession 0001558370-22-004330 (https://www.sec.gov/Archives/edgar/data/1403568/000155837022004330/ulta-20220129x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5990 Retail-Retail Stores, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ULTA.md · JSON record: /company/ULTA.json · verified financials: /company/ULTA/financials.json / /company/ULTA/financials.csv · machine TOC for the whole site: /llms.txt