Ulta Beauty (NASDAQ:ULTA) Sees Large Volume Increase Following Earnings Beat

Key Points

• Ulta Beauty beat expectations with quarterly EPS of $7.74 versus $6.89 expected and revenue of $3.16 billion versus $3.12 billion forecast, while sales rose 11.1% year over year.
• The company raised fiscal 2026 guidance to EPS of $28.36-$28.80 and revenue of $13.1 billion-$13.3 billion, signaling continued confidence in demand and profitability.
• Comparable sales increased 5.3%, and management pointed to stronger margins and improved inventory discipline, helping support the stock despite recent volatility.

Ulta Beauty Inc. (NASDAQ:ULTA - Get Free Report) saw unusually-strong trading volume on Wednesday following a stronger than expected earnings report. Approximately 550,721 shares were traded during trading, a decline of 20% from the previous session's volume of 684,363 shares.The stock last traded at $465.73 and had previously closed at $494.87.

The specialty retailer reported $7.74 earnings per share for the quarter, topping the consensus estimate of $6.89 by $0.85. Ulta Beauty had a return on equity of 43.56% and a net margin of 9.31%.The company had revenue of $3.16 billion for the quarter, compared to analysts' expectations of $3.12 billion. During the same period in the previous year, the firm posted $6.70 earnings per share. The firm's revenue for the quarter was up 11.1% on a year-over-year basis. Ulta Beauty has set its FY 2026 guidance at 28.360-28.800 EPS.

Ulta Beauty News Summary

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Ulta delivered a big Q1 earnings beat, posting $7.74 EPS versus expectations and $3.16 billion in revenue, while sales rose 11.1% year over year. Ulta Beauty Announces First Quarter Fiscal 2026 Results and Updates Fiscal 2026 Guidance
• Positive Sentiment: The company raised fiscal 2026 guidance, including EPS of $28.36-$28.80 and revenue of $13.1 billion-$13.3 billion, signaling management sees momentum continuing. Ulta Beauty raises annual profit forecast on higher-priced product demand
• Positive Sentiment: Comparable sales grew 5.3%, helped by broad-based demand across channels and categories, which suggests Ulta is still gaining share despite a cautious consumer backdrop. Ulta shares pop as beauty retailer beats Wall Street expectations and hikes earnings outlook
• Positive Sentiment: Management also highlighted stronger margins, lower inventory-related losses, and a larger buyback target, all of which support earnings quality and capital returns. ULTA Q1 Earnings Call Highlights Share Gains, Discipline
• Neutral Sentiment: Ulta also announced plans for a new Times Square flagship store, a long-term brand visibility move that is not likely to affect near-term results much. Ulta Beauty’s Heading to Times Square

Analyst Ratings Changes

ULTA has been the subject of a number of analyst reports. JPMorgan Chase & Co. lowered their price target on Ulta Beauty from $800.00 to $750.00 and set an "overweight" rating for the company in a research report on Friday, March 13th. William Blair reissued a "market perform" rating on shares of Ulta Beauty in a research note on Monday, March 9th. Wells Fargo & Company restated an "underweight" rating and issued a $450.00 target price (down from $475.00) on shares of Ulta Beauty in a report on Wednesday. UBS Group reaffirmed a "buy" rating on shares of Ulta Beauty in a research note on Wednesday. Finally, Loop Capital reissued a "hold" rating and issued a $550.00 price objective on shares of Ulta Beauty in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $672.00.

Insider Activity

In other news, Director George R. Mrkonic, Jr. sold 452 shares of the business's stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $539.29, for a total transaction of $243,759.08. Following the completion of the sale, the director directly owned 2,383 shares of the company's stock, valued at approximately $1,285,128.07. The trade was a 15.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.39% of the company's stock.

Institutional Investors Weigh In On Ulta Beauty

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ULTA. Diamant Asset Management Inc. increased its position in shares of Ulta Beauty by 52,171.0% during the first quarter. Diamant Asset Management Inc. now owns 1,474,042 shares of the specialty retailer's stock worth $77,050,000 after acquiring an additional 1,471,222 shares during the period. Norges Bank purchased a new stake in shares of Ulta Beauty in the fourth quarter valued at approximately $430,963,000. Holocene Advisors LP grew its stake in Ulta Beauty by 339.6% in the third quarter. Holocene Advisors LP now owns 379,939 shares of the specialty retailer's stock worth $207,732,000 after purchasing an additional 293,516 shares in the last quarter. Andra AP fonden increased its holdings in Ulta Beauty by 351,900.0% during the 3rd quarter. Andra AP fonden now owns 228,800 shares of the specialty retailer's stock worth $125,096,000 after purchasing an additional 228,735 shares during the period. Finally, Corient Private Wealth LLC raised its position in Ulta Beauty by 1,837.4% during the 4th quarter. Corient Private Wealth LLC now owns 230,998 shares of the specialty retailer's stock valued at $139,756,000 after purchasing an additional 219,075 shares in the last quarter. Institutional investors own 90.39% of the company's stock.

Ulta Beauty Trading Down 5.9%

The firm has a market capitalization of $20.29 billion, a P/E ratio of 18.17, a price-to-earnings-growth ratio of 1.63 and a beta of 0.86. The stock has a 50-day simple moving average of $525.01 and a two-hundred day simple moving average of $585.92.

Ulta Beauty Company Profile

Ulta Beauty, Inc NASDAQ: ULTA is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer's product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.

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