America’s largest specialty cosmetics retailer, Ulta Beauty, has seen sales and profits rise, but investors seem less than impressed.

Across the full financial year ending January 31, Ulta Beauty generated $12.4 billion in net sales and a gross profit of $4.8 billion. Both figures represented increases over the year prior, up 9.7 per cent and 10.4 per cent, respectively.

However, Wall Street reacted cautiously to the positive balance sheet numbers, even though revenue exceeded expectations. The 8 per cent share-price drop occurred because, CNBC reports, the earnings-per-share figure was two cents below guidance for the year.

“The Ulta Beauty team closed the year with momentum, delivering strong fourth quarter and full-year sales and continued market share gains,” said Kecia Steelman, president and CEO. 

“Our better-than-planned financial performance reflects our continued focus on serving our guests and consistently delivering great experiences through better execution, compelling newness, more seamless and convenient experiences, and bold new merchandising and marketing strategies.”

With more than 1500 stores in its portfolio, the company opened 63 stores in the year and closed three. Ulta Beauty’s cosmetic sales comprise 38 per cent of its entire business.

“Looking ahead, we are well-positioned for sustainable, profitable growth in 2026 and beyond and are excited to build on our successes to extend our position as the unmatched beauty and wellness destination for all guests across all ages and life stages,” Steelman added.