Ulta Beauty's Fragrance Push Drives High-Teen Comp Growth in First Quarter

Earnings
โดย Zacks Investment Research·Read original
Summary · why it matters

Ulta Beauty's fragrance category delivered high-teen comparable sales growth and increased its share of total revenues from 11% to 12% in the first quarter of fiscal 2026. Performance was driven by newness from core luxury brands including YSL, Carolina Herrera, and Valentino, along with an encouraging early performance from newly introduced brand Balmain. Innovation also contributed, particularly through the launch of a new milk scent format from exclusive brand NOYZ, whose Mylk de Parfum product combines fragrance and hydrating skincare and helped elevate NOYZ into the company's top 20 fragrance brands for the quarter. Management emphasized a proactive approach to strengthening the fragrance category through targeted investments, enhanced in-store experience, improved inventory availability, and capitalizing on key seasonal events. Ulta Beauty shares have lost 3.8% over the past year, and the stock currently carries a Zacks Rank of 3, or Hold.

Impact on stocks 4

Consumer Discretionary▲ · 2 stocks
Ulta Beauty Inc
ULTA
▲ PositiveDemandrelevance

Fragrance category high-teen comp growth and share increase driven by newness and innovation.

Consumer Staples▲ · 2 stocks
Estee Lauder Companies Inc
EL
▲ PositiveDemandrelevance

Ulta's fragrance growth was driven by core luxury brands including Estee Lauder's YSL, Carolina Herrera, and Valentino, indicating strong demand for these brands.

Off-coverage companies 3

BalmainPrivate± Mixed
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Carolina HerreraPrivate± Mixed
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Valentino S.p.A.Private± Mixed
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