Ulta Beauty posted an 8.9% increase in net sales in the second quarter of 2026, to $3 billion, according to Cosmetics Business. This result beat analyst forecasts, which had projected $2.98 billion, WWD reports.
Gross margin, on the other hand, contracted slightly, to 39.1% of net sales compared with 39.2% a year earlier. This decline is mainly explained by the impact of Space NK, the British beauty retailer acquired by Ulta Beauty, on the business mix.
K-beauty as a growth driver, without excessive hype
The group achieved double-digit growth in its K-beauty sales in the second quarter, with nearly half coming from exclusive products. Kecia Steelman, president and chief executive officer of Ulta Beauty, spoke at an investor conference held on 27 August: « \-beeauty depuis 18 mois, nous continuons d'accélérer.\ »
The executive nonetheless sought to temper the surrounding enthusiasm. « \ Je pense qu'on peut vraiment se laisser emporter par ce battage médiatique autour du K-beauty en le présentant comme très orienté fast fashion\ », she warned, adding: « \ Nous n'allons pas nous laisser emporter par cette mode éphémère du K-beauty, car il y a beaucoup de bruit dans ce secteur.\ » She noted that C-beauty was also gaining ground, with Ulta Beauty having recently added the Chinese brand Proya in August.
Exit from Target, opening in Times Square
Ulta Beauty officially withdrew from its partnership with Target Corp. this month, after having launched its shop-in-shop concept in 2021, a partnership weakened by competition from Sephora, in partnership with Kohl's, and then by Amazon. This week, Target unveiled its own standalone concept, Target Beauty Studio. For its part, Ulta Beauty revealed plans to open a flagship store in Times Square, New York.
The retailer also reported an expanded marketplace, with more than 450 brands and more than 12,000 SKUs online. In Au Mexique, the store network now stands at 12 stores. Au Moyen-Orient, franchise partner Alshaya is preparing several new openings planned later this year, with Ulta Beauty saying it is optimistic about long-term regional expansion prospects.
Steelman summed up the period as « \ un trimestre impressionnant de forte croissance des ventes, des profits et des bénéfices\ », illustrating, in her view, the execution of the group's « \ Unleashed\ » strategy.
