Ulta Beauty, Inc. 10-Q

Item 1. Financial Statements Ulta Beauty, Inc. Consolidated Balance Sheets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, ​ January 31, ​ May 3, (In thousands, except per share data) ​ ​ ​ 2026 ​ ​ ​ 2026 ​ ​ ​ 2025 Assets ​ ​ (Unaudited) ​ ​ ​ ​ ​ (Unaudited) Current assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 166,300 ​ $ 424,243 ​ $ 454,629 Short-term investments ​ ​ 55,000 ​ ​ 70,000 ​ ​ — Receivables, net ​ ​ 248,240 ​ ​ 296,217 ​ ​ 225,146 Merchandise inventories, net ​ ​ 2,386,417 ​ ​ 2,181,127 ​ ​ 2,121,519 Prepaid expenses and other current assets ​ ​ 165,647 ​ ​ 169,361 ​ ​ 138,396 Prepaid income taxes ​ ​ — ​ ​ 3,198 ​ ​ — Total current assets ​ ​ 3,021,604 ​ ​ 3,144,146 ​ ​ 2,939,690 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net ​ ​ 1,420,091 ​ ​ 1,434,062 ​ ​ 1,251,287 Operating lease assets ​ ​ 1,849,896 ​ ​ 1,813,074 ​ ​ 1,658,834 Goodwill ​ ​ 224,628 ​ ​ 226,421 ​ ​ 10,870 Other intangible assets, net ​ ​ 201,596 ​ ​ 203,288 ​ ​ — Deferred compensation plan assets ​ ​ 52,606 ​ ​ 53,391 ​ ​ 47,467 Other long-term assets ​ ​ 124,824 ​ ​ 124,912 ​ ​ 78,541 Total assets ​ $ 6,895,245 ​ $ 6,999,294 ​ $ 5,986,689 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and stockholders’ equity ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 713,775 ​ $ 685,887 ​ $ 537,518 Accrued liabilities ​ ​ 462,065 ​ ​ 551,380 ​ ​ 346,960 Deferred revenue ​ ​ 541,199 ​ ​ 582,378 ​ ​ 462,843 Current operating lease liabilities ​ ​ 309,576 ​ ​ 306,671 ​ ​ 285,764 Accrued income taxes ​ ​ 132,565 ​ ​ 35,739 ​ ​ 130,765 Short-term debt ​ ​ 144,899 ​ ​ 62,287 ​ ​ — Total current liabilities ​ ​ 2,304,079 ​ ​ 2,224,342 ​ ​ 1,763,850 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current operating lease liabilities ​ ​ 1,847,968 ​ ​ 1,813,103 ​ ​ 1,689,439 Deferred income taxes ​ ​ 101,220 ​ ​ 98,766 ​ ​ 46,013 Other long-term liabilities ​ ​ 61,023 ​ ​ 59,632 ​ ​ 57,084 Total liabilities ​ ​ 4,314,290 ​ ​ 4,195,843 ​ ​ 3,556,386 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies (Note 6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock, $ 0.01 par value, 400,000 shares authorized; 44,149 , 45,048 , and 45,922 shares issued; 43,247 , 44,166 , and 45,042 shares outstanding; at May 2, 2026 (unaudited), January 31, 2026, and May 3, 2025 (unaudited), respectively ​ ​ 442 ​ ​ 450 ​ ​ 459 Treasury stock-common, at cost ​ ​ ( 131,241 ) ​ ​ ( 120,442 ) ​ ​ ( 119,704 ) Additional paid-in capital ​ ​ 1,189,256 ​ ​ 1,182,754 ​ ​ 1,129,309 Retained earnings ​ ​ 1,522,410 ​ ​ 1,736,929 ​ ​ 1,420,239 Accumulated other comprehensive income ​ ​ 88 ​ ​ 3,760 ​ ​ — Total stockholders’ equity ​ ​ 2,580,955 ​ ​ 2,803,451 ​ ​ 2,430,303 Total liabilities and stockholders’ equity ​ $ 6,895,245 ​ $ 6,999,294 ​ $ 5,986,689 ​ See accompanying notes to consolidated financial statements. 3 Table of Contents Ulta Beauty, Inc. Consolidated Statements of Income (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands, except per share data) ​ ​ ​ 2026 ​ 2025 Net sales ​ $ 3,163,857 ​ $ 2,848,367 Cost of sales ​ ​ 1,896,237 ​ ​ 1,734,148 Gross profit ​ ​ 1,267,620 ​ ​ 1,114,219 ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative expenses ​ ​ 814,699 ​ ​ 710,613 Pre-opening expenses ​ ​ 4,665 ​ ​ 1,829 Operating income ​ ​ 448,256 ​ ​ 401,777 Interest income, net ​ ​ ( 652 ) ​ ​ ( 3,547 ) Income before income taxes and equity net loss of affiliate ​ ​ 448,908 ​ ​ 405,324 Income tax expense ​ ​ 106,860 ​ ​ 99,644 Income before equity net loss of affiliate ​ ​ 342,048 ​ ​ 305,680 Equity net loss of affiliate ​ ​ 1,579 ​ ​ 628 Net income ​ $ 340,469 ​ $ 305,052 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 7.78 ​ $ 6.72 Diluted ​ $ 7.74 ​ $ 6.70 ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding: ​ ​ ​ ​ ​ ​ Basic ​ ​ 43,781 ​ ​ 45,362 Diluted ​ ​ 43,964 ​ ​ 45,508 ​ ​ See accompanying notes to consolidated financial statements. ​ ​ 4 Table of Contents Ulta Beauty, Inc. Consolidated Statements of Comprehensive Income (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ ​ ​ 2026 ​ ​ ​ 2025 Net income ​ ​ ​ $ 340,469 ​ $ 305,052 Other comprehensive income: ​ ​ ​ ​ ​ ​ Foreign currency translation adjustments ​ ​ ( 3,672 ) ​ ​ — Comprehensive income ​ $ 336,797 ​ $ 305,052 ​ See accompanying notes to consolidated financial statements. ​ 5 Table of Contents Ulta Beauty, Inc. Consolidated Statements of Cash Flows (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ ​ ​ 2026 ​ ​ ​ 2025 Operating activities ​ ​ ​ ​ ​ ​ Net income ​ $ 340,469 ​ $ 305,052 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ ​ 81,399 ​ ​ 72,033 Non-cash lease expense ​ ​ 91,285 ​ ​ 91,105 Deferred income taxes ​ ​ 2,939 ​ ​ 3,420 Stock-based compensation expense ​ ​ 10,490 ​ ​ 11,418 Loss on disposal of property and equipment ​ ​ 4,682 ​ ​ 892 Equity net loss of affiliate ​ ​ 1,579 ​ ​ 628 Change in operating assets and liabilities: ​ ​ ​ ​ ​ ​ Receivables ​ ​ 47,959 ​ ​ ( 1,812 ) Merchandise inventories ​ ​ ( 206,014 ) ​ ​ ( 153,305 ) Prepaid expenses and other current assets ​ ​ 3,596 ​ ​ ( 9,283 ) Income taxes ​ ​ 100,013 ​ ​ 88,934 Accounts payable ​ ​ 21,757 ​ ​ ( 24,920 ) Accrued liabilities ​ ​ ( 112,354 ) ​ ​ ( 32,716 ) Deferred revenue ​ ​ ( 41,097 ) ​ ​ ( 37,742 ) Operating lease liabilities ​ ​ ( 90,459 ) ​ ​ ( 88,100 ) Other assets and liabilities ​ ​ 5,650 ​ ​ ( 5,583 ) Net cash provided by operating activities ​ ​ 261,894 ​ ​ 220,021 ​ ​ ​ ​ ​ ​ ​ Investing activities ​ ​ ​ ​ ​ ​ Proceeds from short-term investments ​ ​ 15,000 ​ ​ — Capital expenditures ​ ​ ( 58,276 ) ​ ​ ( 79,031 ) Other investments ​ ​ ( 4,949 ) ​ ​ ( 7,346 ) Net cash used in investing activities ​ ​ ( 48,225 ) ​ ​ ( 86,377 ) ​ ​ ​ ​ ​ ​ ​ Financing activities ​ ​ ​ ​ ​ ​ Borrowings from short-term debt ​ ​ 115,580 ​ ​ — Payments on short-term debt ​ ​ ( 32,252 ) ​ ​ — Repurchase of common shares ​ ​ ( 545,304 ) ​ ​ ( 369,786 ) Stock options exercised ​ ​ 1,354 ​ ​ 481 Purchase of treasury shares ​ ​ ( 10,799 ) ​ ​ ( 12,911 ) Net cash used in financing activities ​ ​ ( 471,421 ) ​ ​ ( 382,216 ) ​ ​ ​ ​ ​ ​ ​ Effect of exchange rate changes on cash and cash equivalents ​ ​ ( 191 ) ​ ​ — Net decrease in cash and cash equivalents ​ ​ ( 257,943 ) ​ ​ ( 248,572 ) Cash and cash equivalents at beginning of period ​ ​ 424,243 ​ ​ 703,201 Cash and cash equivalents at end of period ​ $ 166,300 ​ $ 454,629 ​ ​ ​ ​ ​ ​ ​ Supplemental information ​ ​ ​ ​ ​ ​ Income taxes paid, net of refunds ​ ​ ​ $ 3,509 ​ $ 7,016 Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Non-cash capital expenditures ​ ​ 49,036 ​ ​ 28,370 Repurchase of common shares in accrued liabilities ​ ​ 13,750 ​ ​ 3,913 ​ See accompanying notes to consolidated financial statements. ​ 6 Table of Contents Ulta Beauty, Inc. Consolidated Statements of Stockholders’ Equity (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury - ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ Common Stock ​ Common Stock ​ Additional ​ ​ ​ Other ​ Total ​ ​ Issued ​ ​ ​ Treasury ​ ​ ​ Paid-In ​ Retained ​ Comprehensive ​ Stockholders' (In thousands) ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ Income (Loss) ​ ​ ​ Equity Balance – February 1, 2025 ​ 46,809 ​ $ 468 ​ ( 844 ) ​ $ ( 106,793 ) ​ $ 1,120,769 ​ $ 1,473,909 ​ $ — ​ $ 2,488,353 Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 305,052 ​ ​ — ​ ​ 305,052 Stock-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 11,418 ​ ​ — ​ ​ — ​ ​ 11,418 Stock options exercised and other awards ​ 100 ​ ​ 1 ​ — ​ ​ — ​ ​ 480 ​ ​ — ​ ​ — ​ ​ 481 Purchase of treasury shares ​ — ​ ​ — ​ ( 36 ) ​ ​ ( 12,911 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 12,911 ) Repurchase of common shares, including excise tax ​ ( 987 ) ​ ​ ( 10 ) ​ — ​ ​ — ​ ​ ( 3,358 ) ​ ​ ( 358,722 ) ​ ​ — ​ ​ ( 362,090 ) Balance – May 3, 2025 ​ 45,922 ​ $ 459 ​ ( 880 ) ​ $ ( 119,704 ) ​ $ 1,129,309 ​ $ 1,420,239 ​ $ — ​ $ 2,430,303 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance – January 31, 2026 ​ 45,048 ​ $ 450 ​ ( 882 ) ​ $ ( 120,442 ) ​ $ 1,182,754 ​ $ 1,736,929 ​ $ 3,760 ​ $ 2,803,451 Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 340,469 ​ ​ — ​ ​ 340,469 Stock-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 10,490 ​ ​ — ​ ​ — ​ ​ 10,490 Foreign currency translation adjustments ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 3,672 ) ​ ​ ( 3,672 ) Stock options exercised and other awards ​ 59 ​ ​ 1 ​ — ​ ​ — ​ ​ 1,353 ​ ​ — ​ ​ — ​ ​ 1,354 Purchase of treasury shares ​ — ​ ​ — ​ ( 20 ) ​ ​ ( 10,799 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 10,799 ) Repurchase of common shares, including excise tax ​ ( 958 ) ​ ​ ( 9 ) ​ — ​ ​ — ​ ​ ( 5,341 ) ​ ​ ( 554,988 ) ​ ​ — ​ ​ ( 560,338 ) Balance – May 2, 2026 ​ 44,149 ​ $ 442 ​ ( 902 ) ​ $ ( 131,241 ) ​ $ 1,189,256 ​ $ 1,522,410 ​ $ 88 ​ $ 2,580,955 ​ See accompanying notes to consolidated financial statements. ​ ​ 7 Table of Contents Ulta Beauty, Inc. Notes to Consolidated Financial Statements (In thousands, except per share and store count data) (Unaudited) 1. Business and basis of presentation Ulta Beauty, Inc. was founded in 1990 to operate specialty retail stores selling cosmetics, fragrance, haircare and skincare products, and related accessories and services. Nearly every store features a full-service salon. As used in these notes and throughout this Quarterly Report on Form 10-Q, all references to “we,” “us,” “our,” “Ulta Beauty,” or the “Company” refer to Ulta Beauty, Inc. and its consolidated subsidiaries. As of May 2, 2026, the Company operated 1,608 stores worldwide: 1,521 Ulta Beauty stores in the U.S. located in 50 states, 85 Space NK stores located in the United Kingdom (“U.K.”), and 2 Space NK stores located in Ireland. The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and the U.S. Securities and Exchange Commission’s Article 10, Regulation S-X. These financial statements were prepared on a consolidated basis to include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and unrealized profit were eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to fairly state the financial position and results of operations and cash flows for the interim periods presented. The Company’s business is subject to seasonal fluctuation, with significant portions of net sales and net income being realized during the fourth quarter of the fiscal year due to the holiday selling season. The results for the 13 weeks ended May 2, 2026 are not necessarily indicative of the results to be expected for the fiscal year ending January 30, 2027, or for any other future interim period or for any future year. These unaudited interim consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2026. All amounts are stated in thousands, with the exception of per share amounts and the number of stores. 2. Summary of significant accounting policies Information regarding significant accounting policies is contained in Note 2, “Summary of significant accounting policies,” to the consolidated financial statements in the Annual Report on Form 10-K for the year ended January 31, 2026. Presented below and in the following notes is supplemental information that should be read in conjunction with “Notes to Consolidated Financial Statements” in the Annual Report. Fiscal quarter The Company’s quarterly periods are the 13 weeks ending on the Saturday closest to April 30, July 31, October 31, and January 31 each year. The first quarters of fiscal 2026 and 2025 ended on May 2, 2026 and May 3, 2025, respectively. 8 Table of Contents Use of estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates. The Company considers its accounting policies relating to inventory valuations, vendor allowances, impairment of long-lived tangible and right-of-use assets, impairment of goodwill and other intangible assets, loyalty program, income taxes, and business combinations to be the most significant accounting policies that involve management estimates and judgments. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Recent accounting pronouncements not yet adopted Income Statement – Reporting Comprehensive Income (Topic 220-40): Expense Disaggregation Disclosures In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income (Topic 220-40): Expense Disaggregation Disclosures. This update requires, among other things, more detailed disclosure about types of expenses in commonly presented expense captions such as cost of sales and selling, general and administrative (SG&A) expenses and is intended to improve the disclosures about an entity’s expenses including purchases of inventory, employee compensation, depreciation, and amortization. The ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027. The Company is evaluating the impact of adopting ASU 2024-03 on the consolidated financial statements and disclosures. Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ​ In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU is intended to improve and modernize the accounting for software costs to better align with the evolution of software development. The ASU is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within fiscal years beginning after December 15, 2027. Early adoption is permitted as of the beginning of an annual reporting period. The amendments should be applied on a prospective transition basis to financial statements issued for reporting periods after the effective date of the update, on a modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption, or on a retrospective transition basis to any or all prior periods presented in the financial statements. The Company is evaluating the impact of adopting ASU 2025-06 on the consolidated financial statements. Interim Reporting (Topic 270) In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU provides enhancements and clarifications to interim disclosure requirements and the applicability of Accounting Standards Codification (“ASC”) Topic 270 – Interim Reporting. The amendments establish a comprehensive listing of required interim disclosures and improve navigability and consistency in interim reporting. The ASU also introduces a new disclosure principle that requires entities to disclose events occurring after the end of the most recent annual period that have a material impact on the entity. Additionally, the amendments clarify the types of interim financial statements subject to GAAP (including condensed statements) and provide presentation and content requirements for interim periods. The guidance is effective for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting ASU 2025-11 on the consolidated financial statements and related disclosures. Codification Improvements In December 2025, the FASB issued ASU 2025-12, Codification Improvements, which represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification 9 Table of Contents easier to understand and apply. The amendments are effective for interim and annual periods beginning after December 15, 2026, with early adoption permitted. The Company is evaluating the impact of adopting ASU 2025-12 on the consolidated financial statements and related disclosures. ​ 3. Revenue Net sales include retail stores and e-commerce merchandise sales as well as salon services and other revenue. Other revenue includes other revenue sources such as the private label and co-branded credit card programs, deferred revenue related to the loyalty program and gift card breakage, royalties, and commissions. Disaggregated revenue ​ The following table sets forth the approximate percentage of net sales by primary category: ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (Percentage of net sales) ​ 2026 ​ 2025 Cosmetics ​ 40 % ​ 40 % Skincare and wellness ​ 24 % ​ 25 % Haircare ​ 18 % ​ 18 % Fragrance ​ 12 % ​ 11 % Services ​ 4 % ​ 4 % Other ​ 2 % ​ 2 % ​ ​ 100 % ​ 100 % ​ Deferred revenue ​ Deferred revenue primarily represents contract liabilities for the obligation to transfer additional goods or services to a guest for which the Company has received consideration, such as unredeemed loyalty points and unredeemed gift cards. In addition, breakage on gift cards is recognized proportionately as redemption occurs. ​ The following table provides a summary of the changes included in deferred revenue during the 13 weeks ended May 2, 2026 and May 3, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ 2026 ​ 2025 Beginning balance ​ $ 574,035 ​ $ 492,907 Additions to contract liabilities (1) ​ ​ 167,485 ​ ​ 164,054 Deductions to contract liabilities (2) ​ ​ ( 209,956 ) ​ ​ ( 201,701 ) Ending balance ​ $ 531,564 ​ $ 455,260 (1) Loyalty points and gift cards issued in the current period but not redeemed or expired. (2) Revenue recognized in the current period related to the beginning liability . Other amounts included in deferred revenue were $ 9,635 and $ 7,583 at May 2, 2026 and May 3, 2025, respectively. ​ ​ 10 Table of Contents 4. Goodwill and other intangible assets Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired. The recoverability of goodwill is reviewed annually during the fourth quarter or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. The changes in the carrying amounts of goodwill during the 13 weeks ended May 2, 2026 and May 3, 2025 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, ​ May 3, (In thousands) ​ 2026 ​ ​ ​ 2025 Beginning balance ​ $ 226,421 ​ $ 10,870 Acquisitions ​ ​ — ​ ​ — Effect of exchange rate changes ​ ​ ( 1,793 ) ​ ​ — Ending balance ​ $ 224,628 ​ $ 10,870 Other intangible assets Intangible assets with definite lives are amortized over their useful lives. The recoverability of definite-lived intangible assets is reviewed whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Intangible assets with indefinite lives, which primarily consist of trademarks, are not amortized but instead evaluated for impairment annually or more frequently if events or circumstances indicate that the intangible asset might be impaired. This analysis is dependent upon a number of uncertain factors and is typically performed in conjunction with the goodwill impairment analysis discussed above and is similar to the analysis performed at acquisition. The changes in the carrying amounts of other intangible assets during the 13 weeks ended May 2, 2026 and May 3, 2025 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, ​ May 3, (In thousands) ​ 2026 ​ ​ ​ 2025 Beginning balance ​ $ 203,288 ​ $ 204 Acquisitions ​ ​ — ​ ​ — Amortization ​ ​ — ​ ​ ( 204 ) Effect of exchange rate changes ​ ​ ( 1,692 ) ​ ​ — Ending balance ​ $ 201,596 ​ $ — ​ 5. Leases The Company leases retail stores, distribution centers, fast fulfillment centers, market fulfillment centers, corporate offices, and certain equipment under non-cancelable operating leases with various expiration dates through 2041. All leases are classified as operating leases and generally have initial lease terms of 10 years and, when determined applicable, include renewal options under substantially the same terms and conditions as the original leases. Leases do not contain any material residual value guarantees or material restrictive covenants. Lease cost The majority of operating lease cost relates to retail stores, distribution centers, fast fulfillment centers, and market fulfillment centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses. 11 Table of Contents The following table presents a summary of operating lease costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ 2026 ​ 2025 Operating lease cost ​ $ 104,372 ​ $ 93,466 ​ Other information The following table presents supplemental disclosures of cash flow information related to operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ ​ ​ 2026 ​ 2025 Cash paid for operating lease liabilities (1) ​ $ 115,473 ​ $ 106,017 Operating lease assets obtained in exchange for operating lease liabilities (non-cash) ​ ​ 128,956 ​ ​ 140,069 (1) Excludes $ 13,418 and $ 15,782 related to cash received for tenant incentives for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. 6. Commitments and contingencies The Company is involved in various legal proceedings that are incidental to the conduct of its business including both class action and single plaintiff litigation. In the opinion of management, the amount of any liability with respect to these proceedings, either individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. 7. Debt On August 27, 2025, the Company entered into Amendment No. 4 to the Second Amended and Restated Loan Agreement (as so amended, the “Loan Agreement”) with Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, and a Lender thereunder; Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as Lead Arrangers and Bookrunners; JPMorgan Chase Bank, N.A., as Syndication Agent and a Lender; and the other lenders party thereto. The Loan Agreement matures on March 13, 2029, provides maximum revolving loans equal to the lesser of $ 1,000,000 or a percentage of eligible owned inventory and eligible owned receivables (which borrowing base may, at the election of the Company and satisfaction of certain conditions, include a percentage of qualified cash), and contains a $ 50,000 subfacility for letters of credit. The Loan Agreement contains a requirement to maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 whenever availability under the Loan Agreement falls below a specified threshold. Substantially all of the Company’s assets are pledged as collateral for outstanding borrowings under the Loan Agreement. Outstanding borrowings bear interest, at the Company’s election, at either a base rate plus a margin of 0.5 % to 1.0 % or the Term Secured Overnight Financing Rate plus a margin of 1.5 % to 2.0 %, and a credit spread adjustment of 0.10 %, with such margins based on the Company’s borrowing availability. The unused line fee is 0.25 % to 0.375 % per annum. As of May 2, 2026, there was $ 102,000 outstanding under the Loan Agreement. The weighted average interest rate was 7.25 % for the 13 weeks ended May 2, 2026. As of January 31, 2026 and May 3, 2025, there were no borrowings outstanding under the Loan Agreement. Ulta Beauty’s wholly owned subsidiary, Space NK Limited (“Space NK”), maintains a multi-currency revolving credit facility (the “Facility Agreement”) with National Westminster Bank plc, providing up to £ 40,000 for working capital requirements. The Facility Agreement, maturing on April 17, 2028, allows Space NK to increase the revolving facility by an additional £ 10,000 with lender consent. The facility is secured by the assets of Space NK and contains a requirement to maintain an interest coverage ratio not less than 4.0 to 1.0 and a leverage ratio not to exceed 2.0 to 1.0 for any relevant period. Borrowings bear interest at either the compound or term Sterling Overnight Index Average plus a margin of 1.75 %, and this facility includes an unused line fee of 0.60 % per annum. As of May 2, 2026 and January 31, 2026, there was $ 42,899 and $ 62,287 , respectively, outstanding under the Facility Agreement. 12 Table of Contents As of May 2, 2026, the Company was in compliance with all terms and covenants of the Loan Agreement and Facility Agreement. 8. Fair value measurements The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates their estimated fair values due to the short maturities of these instruments. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: ● Level 1 – observable inputs such as quoted prices for identical instruments in active markets. ● Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. ● Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions. ​ Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analyses of goodwill, other intangible assets, and long-lived tangible assets. These involve fair value measurements on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. The fair value of other intangible assets, net was valued under the relief from royalty method, which is equal to the present value of the after-tax royalty savings attributable to owning the intangible assets as opposed to paying a third party for its use. The fair value measurement was based on significant unobservable inputs (level 3) developed using company-specific information. The key assumptions in applying the relief from royalty method include the applicable projected revenues, discount rate, remaining useful life, and estimated royalty rate. As of May 2, 2026, January 31, 2026, and May 3, 2025, there were liabilities related to the non-qualified deferred compensation plan included in other long-term liabilities on the consolidated balance sheets of $ 43,358 , $ 42,470 , and $ 44,712 , respectively. The liabilities are categorized as Level 2 as they are based on third-party reported values, which are based primarily on quoted market prices of underlying assets of the funds within the plan. 9. Stock-based compensation Stock-based compensation expense is measured on the grant date based on the fair value of the award. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for awards expected to vest. The estimated grant date fair value of stock options was determined using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ ​ May 2, ​ May 3, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Volatility rate 34.0 % ​ 34.0 % ​ Average risk-free interest rate 3.8 % ​ 3.9 % ​ Average expected life (in years) 3.4 3.4 ​ Dividend yield — — ​ ​ The expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the United States Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected life represents the time the options granted are expected to be outstanding. The expected life of options granted is derived from historical data on Ulta Beauty stock option exercises. Forfeitures of stock options are estimated at the grant date based on historical rates of stock option activity and reduce the stock-based compensation expense recognized. The Company does not currently pay a regular dividend. 13 Table of Contents The Company granted 108 and 129 stock options during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. Stock-based compensation expense for stock options was $ 1,774 and $ 3,039 for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. The weighted-average grant date fair value of these stock options was $ 153.72 and $ 107.99 for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. At May 2, 2026, there was approximately $ 28,606 of unrecognized stock-based compensation expense related to unvested stock options. There were 77 and 99 restricted stock units issued during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. Stock-based compensation expense for restricted stock units was $ 6,630 and $ 5,346 for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. At May 2, 2026, there was approximately $ 71,932 of unrecognized stock-based compensation expense related to restricted stock units. There were no performance-based restricted stock units issued during the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. Stock-based compensation expense for performance-based restricted stock units was $ 1,851 and $ 3,033 for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. At May 2, 2026, there was approximately $ 3,013 of unrecognized stock-based compensation expense related to performance-based restricted stock units. There were 68 performance stock options issued during the 13 weeks ended May 2, 2026. Stock-based compensation expense for performance stock options was $ 235 for the 13 weeks ended May 2, 2026. At May 2, 2026, there was approximately $ 13,739 of unrecognized stock-based compensation expense related to performance stock options. 10. Income taxes Income tax expense reflects the federal statutory tax rate and the weighted average state statutory tax rate for the states in which the Company operates stores. Income tax expense of $ 106,860 for the 13 weeks ended May 2, 2026 represents an effective tax rate of 23.9 %, compared to $ 99,644 of income tax expense representing an effective tax rate of 24.6 % for the 13 weeks ended May 3, 2025. The lower effective tax rate is primarily due to the purchase of transferable federal tax credits. These federal tax credits were purchased at a negotiated discount, resulting in an income tax benefit recorded during the quarter. 11. Net income per common share The following is a reconciliation of net income and the number of shares of common stock used in the computation of net income per basic and diluted common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands, except per share data) ​ ​ ​ 2026 ​ ​ ​ 2025 Numerator: ​ ​ ​ ​ ​ ​ Net income ​ ​ ​ $ 340,469 ​ $ 305,052 ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ Weighted-average common shares – Basic ​ ​ 43,781 ​ ​ 45,362 Dilutive effect of stock options and non-vested shares ​ ​ 183 ​ ​ 146 Weighted-average common shares – Diluted ​ ​ 43,964 ​ ​ 45,508 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ ​ ​ Basic ​ $ 7.78 ​ $ 6.72 Diluted ​ $ 7.74 ​ $ 6.70 ​ The denominator for diluted net income per common share for the 13 weeks ended May 2, 2026 and May 3, 2025 excludes 277 and 354 employee stock options and restricted stock units, respectively, due to their anti-dilutive effects. Outstanding performance-based restricted stock units are included in the computation of dilutive shares only to the extent that the underlying performance conditions are satisfied prior to the end of the reporting period or would be considered 14 Table of Contents satisfied if the end of the reporting period were the end of the related contingency period and the results would be dilutive under the treasury stock method. 12. Share repurchase program In October 2024, the Board of Directors authorized a share repurchase program (the “October 2024 Share Repurchase Program”) pursuant to which the Company may repurchase up to $ 3,000,000 of the Company’s common stock. The October 2024 Share Repurchase Program authorization revoked the previously authorized but unused amounts from the share repurchase program that was authorized in March 2024. The October 2024 Share Repurchase Program does not have an expiration date and may be suspended or discontinued at any time. ​ A summary of common stock repurchase activity is presented in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ 2026 ​ ​ ​ 2025 Shares repurchased ​ ​ 958 ​ ​ 987 Total cost of shares repurchased, including excise tax ​ $ 560,338 ​ $ 362,090 ​ 13. Segment reporting The Company has one reportable segment, which includes retail stores, salon services, and e-commerce. Within the reportable segment, there are significant expense categories included in the measure of the segment’s net income as shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ May 2, ​ May 3, (In thousands) ​ 2026 ​ ​ ​ 2025 Net sales ​ $ 3,163,857 ​ $ 2,848,367 Less: ​ ​ ​ ​ ​ ​ Cost of sales (1) ​ ​ 1,896,237 ​ ​ 1,734,148 Associate expenses (2) ​ ​ 438,018 ​ ​ 387,150 Advertising expense, net (3) ​ ​ 93,055 ​ ​ 90,609 Pre-opening expenses ​ ​ 4,665 ​ ​ 1,829 Other segment expenses (1) (4) ​ ​ 283,626 ​ ​ 232,854 Interest income, net ​ ​ ( 652 ) ​ ​ ( 3,547 ) Income tax expense ​ ​ 106,860 ​ ​ 99,644 Equity net loss of affiliate ​ ​ 1,579 ​ ​ 628 Net income ​ $ 340,469 ​ $ 305,052 15 Table of Contents ​ (1) Included within cost of sales and other segment expenses is depreciation and amortization expense of $ 81,399 and $ 72,033 for the 13 weeks ended May 2, 2026 and May 3, 2025, respectively. (2) Associate expenses include salaries, wages, bonuses, and other forms of compensation related to associates. (3) Advertising expense, net consists of print, digital and social media, and television and radio advertising, net of vendor income that is a reimbursement of specific, incremental, and identifiable costs. (4) Other segment expenses include other corporate overhead and store operating expenses within SG&A expenses. ​