Ulta Beauty, the U.S. beauty retailer, saw a net sales increase of 8.9% to $3 billion in the second quarter of 2026. This growth was buoyed by the popularity of K-beauty products and the acquisition of U.K. retailer Space NK. Comparable sales rose 3.8%, and gross profit increased 8.7% to $1.2 billion during the quarter. The company also opened new stores during the quarter, contributing to its overall growth.
K-Beauty Drives Growth
K-beauty, or Korean beauty, has been a significant driver of Ulta Beauty’s sales growth. The retailer reported double-digit sales in this category in the second quarter. Nearly half of these sales originated from products exclusive to Ulta Beauty, indicating the company’s success in offering unique and desirable products to its customers. Kecia Steelman, Ulta Beauty’s President and CEO, attributed this growth to the company’s leadership in bringing global beauty trends to the U.S. market.
“As the U.S. leader in K-beauty for the last 18 months, we have been continuing to accelerate,” Steelman said during an investor call on August 27. However, she also cautioned about the potential pitfalls of the fast fashion trend in K-beauty. She emphasized the importance of curating high-quality, effective products, stating, “We want to put the very best of the assortment and have that trusted experience from our customers that are coming into the store.” This strategy ensures that Ulta Beauty maintains its reputation for quality while capitalizing on the K-beauty trend.
In addition to K-beauty, Ulta Beauty has been expanding its global beauty offerings. The company recently onboarded Chinese cosmetics brand Proya, demonstrating its commitment to exploring emerging beauty markets beyond K-beauty. This diversification strategy helps Ulta Beauty maintain its position as a go-to destination for global beauty trends.
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Managing Makeup Market Slows
The makeup category has seen slower growth in the first half of 2026, with mass cosmetics retail sales increasing by only 5% compared to other categories like fragrance, which saw a 15% sales boom, according to market research firm Circana. Steelman attributed this to a lack of new products from major brands, stating, “This is a reflection of a lack of newness from some of the major brands as they lose some strength from last year.” However, Ulta Beauty is optimistic about the remainder of the year, with encouraging activity and new product launches in the makeup category.
Steelman also addressed Ulta Beauty’s promotional activity, stating that while the promotional environment has increased, the retailer has been strategic and thoughtful in its approach. She explained that the company has been evolving its promotional strategies to drive profitable growth. This approach involves considering promotions holistically and focusing on delivering value to consumers, especially in the face of economic uncertainty.
Raising Guidance for the Year
Based on its strong second-quarter performance, Ulta Beauty has increased its full-year guidance. The retailer now expects net sales growth of 6.7% to 7.2%, up from its previous estimate of 6% to 7%, and comparable sales growth of 3.2% to 3.7%, up from 2.5% to 3.5%. Steelman credited the company’s execution and strategy for driving growth in a dynamic environment. She attributed the success to Ulta Beauty’s unique understanding of its guests, compelling innovation, value, experiences, and convenience offered by the retailer.
In other developments, Ulta Beauty appointed Kelly Garcia to its board of directors, further enriching the diversity of the company’s leadership. Additionally, the retailer promoted Kristin Wolf to the role of Chief Strategy & Growth Officer, reflecting its commitment to strategic growth and innovation.
