Why Is Ulta Beauty (ULTA) Stock Falling Premarket Today? Weak 2026 Outlook

Ulta Beauty (ULTA) shares are under significant pressure in premarket trading on Friday, March 13, 2026, sliding nearly 8% to around $574.91 after the specialty beauty retailer posted its fiscal fourth-quarter earnings results. While the company managed to beat Wall Street’s revenue expectations, a modest miss on earnings per share combined with a softer-than-anticipated fiscal 2026 outlook proved to be enough to unsettle investors. The stock closed at $624.70 on Thursday before the after-hours selloff took hold, and the pressure has carried into the premarket session.

Mixed Q4 Results: Revenue Beat Overshadowed by EPS Miss

For the fiscal fourth quarter ended January 31, Ulta Beauty reported revenue of $3.90 billion, topping Wall Street’s estimate of $3.80 billion — a solid top-line performance reflecting 11.8% net sales growth year over year. Comparable sales grew 5.8% in the quarter, driven by a 4.2% rise in average ticket size and a 1.6% increase in transactions.

The growth was further boosted by the acquisition of Space NK and contributions from new store openings, underscoring the company’s continued retail expansion strategy. However, earnings per share came in at $8.01, just short of the $8.03 analysts had expected, a small but symbolically significant miss. Gross profit rose 11.2% to $1.5 billion, though gross margin edged down slightly to 38.1% from 38.2% a year earlier, pressured by an unfavorable sales mix and higher store-related costs.

Selling, general and administrative expenses jumped 23% to $1 billion, driven by higher corporate overhead tied to strategic investments, increased advertising spend, and elevated incentive compensation. For the full fiscal 2025 year, Ulta reported net sales of $12.4 billion, a 9.7% increase from the prior year — a strong headline figure that nonetheless failed to offset investor concern about what lies ahead.

CEO Kecia Steelman credited the performance to better execution, compelling new product offerings, and more seamless guest experiences, while noting the company’s focus on bold new merchandising and marketing strategies going forward.

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ULTA Stock Brief: Market Reaction to 2026 Guidance

As of premarket trading on March 13, ULTA was quoted at $574.91, down $49.79 or approximately 7.97% from Thursday’s closing price of $624.70. The stock’s 52-week range spans $323.37 to $714.97, and its current market capitalization stands at approximately $28 billion. The trailing price-to-earnings ratio sits at 23.98, with a one-year analyst price target average of $701.50, well above current levels, suggesting analysts broadly view the stock as undervalued at these prices.

The primary driver of the selloff is Ulta’s fiscal 2026 guidance, which projected net sales growth of 6% to 7% and diluted EPS of $28.05 to $28.55. The midpoint of that EPS range, at $28.30, came in slightly below the analyst consensus of around $28.40 to $28.57. Same-store sales growth was guided at 2.5% to 3.5%, which also fell short of some buy-side expectations.

Raymond James analyst Olivia Tong noted that while the guidance broadly captured consensus, buy-side expectations had been running higher, and elevated spending in the quarter was an additional headwind. Despite the sharp decline, analyst sentiment on ULTA remains largely constructive.

Tong maintained her Strong Buy rating, characterizing any further weakness as a buying opportunity. Telsey Advisory Group also maintained its Outperform rating with a $715 price target as of March 13. Morgan Stanley’s Simeon Gutman noted that near-term upside will depend on the company’s ability to sustain comparable sales outperformance and demonstrate disciplined cost management, a key watch item for investors heading into fiscal 2026.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.