Ulta Beauty is still growing, but the Q2 fiscal 2026 results show a beauty business attributing a greater share of sales toward fragrance, hair care and international expansion, while some of its biggest legacy categories are losing market share.
“Our team delivered another impressive quarter of strong sales, profit, and earnings growth, demonstrating that we are executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests,” said Kecia Steelman, president and chief executive officer. “We continue to strengthen our position as the ultimate beauty discovery destination, leveraging our unique understanding of our guests to drive excitement and growth through compelling innovation, value, experiences, and convenience.”
Steelman continued, “With our strong first-half performance, we have raised our financial guidance for the year, reflecting our confidence in our strategic priorities and our ability to drive profitable growth and long-term value for all stakeholders in a dynamic environment."
Fragrance and Hair Care Gain Ground as Beauty Mix Shifts
Q2 net sales rose 8.9% to $3.0 billion, while comparable sales increased 3.8%. Six-month net sales totaled $6.2 billion, compared to $5.6 billion the year prior.
In Q2, the portion of sales attributed to cosmetics slipped from 37% to 38%, year over year, while skin care dipped from 25% to 24%. Hair care gained share, rising from 19% to 20%, while fragrance rose from 12% to 13%.
Per Circana data for the first half of 2026, U.S. prestige fragrance sales rose 6%, while units remained flat. Average prices increased 5%, making premiumization the clear engine of dollar growth rather than consumers buying more fragrance overall. Consumers are trading up into higher-concentration formats, with EDP and perfume posting double-digit growth. Luxury fragrance was even stronger, with both dollar and unit sales increasing, fueled largely by women's fragrance.
Mass fragrance sales, meanwhile, jumped 15%, while units increased 7%, per Circana. That means the category is benefiting from both more purchases and higher prices, suggesting fragrance's appeal extends well beyond the luxury consumer.
In the same period, prestige hair care sales were up 11% and units up 8%. Unlike fragrance, where the dollar-unit gap was driven by premiumization, hair care is seeing meaningful expansion in both measures.
Mass hair care sales increased 7%, but units dipped, suggesting that consumers are becoming more value-conscious.
Ulta Bets on Store Growth as Sales Outlook Gets a Lift
Ulta's Q2 sales benefited from the acquisition of Space NK and new stores, while Ulta added 14 net stores during the quarter. Six-month store growth reached 31 net locations, including two international stores.
Ulta is signaling confidence in that model, raising its full-year comparable-sales growth forecast to 3.2%-3.7%, from 2.5%-3.5%, while lifting its operating-income growth forecast to 8.3%-9.3%.
