Slides
Page 1
Second Quarter of Fiscal 2026 Earnings August 27, 2026
Page 2
2 Safe Harbor Statement The presentation contains forward - looking statements within the meaning of Section 21 E 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 presentation and relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity, share repurchases, 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 presentation 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, 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 the section entitled “Risk Factors” in our Annual Report on Form 10 - K for the fiscal 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 presentation speaks only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements included in this presentation . 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 . All information presented is based on Ulta Beauty, Inc . ’s data, unless otherwise noted .
Page 3
ULTA Beauty | Proprietary & Confidential Overview Kecia Steelman President & CEO
Page 4
4 Performance Highlights Second Quarter Fiscal 2026 Comparable Sales 1 +3.8% vs. 2Q25 +6.7% Net Sales +8.9% vs. 2Q25 to $3.0B Operating Income Growth +10.1% vs. 2Q25 to $379.6M Diluted EPS +13.3% vs. 2Q25 to $6.55 1) Reflects sales for stores beginning on the first day of the 14th month of operation.
Page 5
5 Performance Highlights, cont. Second Quarter Fiscal 2026 • Increased earned media value and unaided awareness • Strategically leveraged promotions to drive traffic and sales • Fueled incremental sales through personalization • Gained prestige 2 market share while holding mass share roughly flat 3 1) Active members are enrolled in Ulta Beauty’s loyalty program and made at least on purchase in the last 12 months. 2) Source: Circana, LLC, US Prestige Total Measured Market, Makeup, Skin, Hair, & Fragrance Combined, Dollars % Change v. YA, FQTD WE 8 - 1 - 2026 3) Source: Circana, LLC, Total US – MULO+, Mass Brand Classification, Makeup, Retailer: Ulta Beauty, Dollar Share % Change v. YA, FQTD WE 8 - 2 - 2026 Active Loyalty Members 1 ~47M +3% vs. 2Q25 Launched 15 new brands over 60% of online sales Mobile App Represents
Page 6
6 Designed to Deliver Long - Term, Profitable Growth and Shareholder Value Align Foundation for Success Scale New, Accretive Businesses Drive Core Business Growth Invest in Critical Areas to Accelerate Our Core Beauty Leadership Drive Disruptive, Margin - Accretive Growth Fortify our Cost Structure, Operating Model and Culture
Page 7
7 Drive Core Business Growth Omnichannel Performance Highlights • Store performance driven by effective execution of key promotions and events as well as compelling newness • E - commerce momentum driven by ongoing investments in guest experience, omnichannel capabilities and emerging channels • Tik Tok Shop gained traction with the addition of several new brands, including Tik Tok’s first celebrity fragrance launch Held More Than 40,000 in - store events Stores Fulfilled Over 50% of e - commerce orders Double - Digit e - commerce comps 6 th Consecutive Quarter of Powering Company’s Overall Performance
Page 8
8 Drive Core Business Growth Brand Building Highlights Creating a Continuous Sense of Discovery • Advanced ambition to win in fragrance , drove market share gains through a strong pipeline of newness, high - impact campaigns, and engaging experiences • Delivered robust double - digit growth 1 in K - Beauty sales, with nearly half of sales coming from exclusive products • Launched 15 new brands and collaborated with existing brands to fuel innovation pipeline and address white space opportunities 1) Compared to the second quarter of 2025.
Page 9
9 Strengthening Position at Intersection of Beauty, Culture and Community Drive Core Business Growth Marketing and Personalization Highlights • Held activations at BottleRock and Lollapalooza • Amplified reach through powerful creator ecosystem spanning influential voices across social platforms • Expanded social commerce through TikTok Shop and TikTok LIVE • Earned media value and impressions reached record levels • Advanced personalization capabilities
Page 10
10 Scale New Accretive Businesses International Expansion Highlights Ulta Beauty Middle East Ulta Beauty Mexico Space NK • Drove robust sales growth • Continued market share expansion • Expanded store footprint • Drove awareness through World Cup activation • Advanced store opening plan • Remain optimistic about expansion opportunity in the region long - term Expanding Global Presence Through Low - Risk, Capital Light Approach
Page 11
11 Scale New Accretive Businesses Marketplace and UB Media Highlights • Marketplace attracted new and reactivated lapsed loyalty members; served as a source of newness; and fueled incremental UB Media growth • UB Media’s new product strength and brand investments fueled growth and profitability 1) Compared to the second quarter of 2025. 450+ Marketplace brands 12,000+ Marketplace SKUs Double - Digit UB Media Growth 1 Expanding Offering, Driving Momentum
Page 12
12 Scale New Accretive Businesses Wellness Highlights • Held inaugural “Find Your Feel Good” wellness event, sparked meaningful engagement and awareness • Incorporated Wellness into strategic tentpole events, like Big Summer Beauty Sales • Elevated assortment with addition of new brands Fueling Incremental Growth
Page 13
13 Align our Foundation for the Future • Leveraged prior supply chain investments to improve speed to guests, increase efficiency and help offset impact of rising fuel costs • AI - powered sourcing capabilities enabled inventory optimization to meet greater customer demand • Scaled content creation and enriched product information across AI platforms • Enhanced onsite shopping agent , ULTA AI, with encouraging results including meaningful increases in site traffic and improved conversion Supply Chain Optimization and AI Advancement Highlights Unlocking Operational Efficiencies
Page 14
14 Positioned to Win in an Evolving Environment Delivering Meaningful Value While Deepening Engagement • Assortment spans all price points , providing guests choice and flexibility to shop on any budget • Seamless omnichannel experience enables convenient shopping and order fulfillment • Powerful, value - rich loyalty program rewards members with personalized promotions, relevant offers, and exclusive perks
Page 15
Drive Core Business Growth Scale New, Accretive Businesses Align Our Foundation for Success • Fueled newness by adding 35+ new brands and collaborating with existing brands • Maximized key selling opportunities and hosted 80,000+ in - store events • Launched Tik Tok shop with encouraging results • Advanced personalization capabilities , fueling incremental sales • Expanded internationally with 2 Space NK, 3 UB Mexico and 1 UB Middle East openings • Launched new Wellness brands and enhanced in - store and online experience • Broadened Marketplace assortment to include over 450 brands and over 12,000 SKUs • Introduced new UB Media capabilities, features and products • Leveraged automation to drive supply chain efficiency • Introduced onsite agent, Ulta AI • Expanded enterprise AI capabilities • Strengthened culture with a focus on the guest experience YTD Strategic Achievements Power of Entire Ecosystem is a Key Differentiator
Page 16
16 Ulta Beauty is the ultimate beauty discovery destination with a strategic advantage that is difficult to replicate. - Kecia Steelman, President and CEO
Page 17
Second Quarter of Fiscal 2026 Financial Review Chris DelOrefice CFO
Page 18
18 Q2 2026 Performance Highlights Sales Performance and Company - Operated Store Openings 13 net new Ulta Beauty stores 1 net new Space NK store 1,534 Ended 2Q26 with Ulta Beauty stores and 88 Space NK stores E - commerce high - teen comp growth Comparable Sales 1 +3.8% Net Sales +8.9% vs. 2Q25 to $3.0B Stores modest comp growth 1) Reflects sales for stores beginning on the first day of the 14th month of operation. vs. 2Q25 +6.7%
Page 19
19 Q2 2026 Category Performance Newness and Innovation Continue to Drive Growth FRAGRANCE high - teen comp growth HAIRCARE high - single - digit comp growth MAKEUP approximately flat comp sales Driven by: • Prestige growth offset by a decrease in mass SERVICES mid - single - digit comp growth Driven by: • Strong member engagement in salon and specialty services Driven by: • Prestige haircare and hair tools strength SKINCARE & WELLNESS modest comp decline Driven by: • Prestige and mass skincare and wellness growth, offset by pressure in body care Driven by: • Successful holiday activations • Compelling newness
Page 20
20 Q2 2026 Performance Highlights Delivered Profitable Growth SG&A % of Net Sales - 20 bps vs. 2Q25 to 26.4% Gross Margin 1 - 10 bps vs. 2Q25 to 39.1% Operating Income Growth +10.1% vs. 2Q25 to $379.6M Diluted EPS +13.3% vs. 2Q25 to $6.55 1) As a percentage of net sales.
Page 21
21 YTD Balance Sheet and Capital Allocation Maintaining Disciplined Capital Allocation Strategy Capital Expenditures Share Repurchases Capital Deployed ($M) $140M $791M in operating cash flow $382M in cash & short - term investments $213M in short - term debt $340M in inventory $2.4B Increased FY26 Stock Buyback Plan to $1.8B
Page 22
22 Fiscal 2026 Outlook 1 Raised Full - Year Expectations; at High - End of LT Growth Algo Provided June 2, 2026 Provided August 27, 2026 Net Sales Growth +6% to +7% +6.7% to +7.2% Comparable Sales Growth 1 +2.5% to +3.5% +3.2% to +3.7% Operating Income Growth +6.5% to +9% +8.3% to +9.3% Diluted Earnings per Share 2 $28.36 to $28.80 $28.70 to $29.00 Diluted Earnings per Share Growth +10.6% to +12.3% +11.9% to +13.1% Note: outlook comparisons are to FY25. 1) Reflects sales for stores beginning on the first day of the 14th month of operation. 2) Assumes a tax rate of ~24.5%, a weighted average share count of ~43 million shares and the company’s intent to return approximately $1.8 billion of capital to shareholders through its stock repurchase program. Reflecting the company’s intent to leverage its revolver to support its stock repurchase program, FY26 interest expense is expected to be between $14 to $16 million.
Page 23
23 We remain focused on executing with discipline against our plans and delivering strong profitable sales growth and double - digit earnings growth for shareholders. - Chris DelOrefice , CFO
Page 24
24 Q&A