Ulta Beauty Drives Growth with Digital Investments and AI

Ulta Beauty’s strategic investments in digital enhancements and artificial intelligence (AI) fueled a strong fourth quarter and fiscal year 2025, exceeding initial expectations, according to a recent earnings call. The company reported an 11.8% year-over-year increase in net sales and a 5.8% rise in comparable sales for the fourth quarter .

Strong Performance Across Channels and Categories

Ulta Beauty experienced comparable sales growth in both its brick-and-mortar stores and digital channels. Store sales saw low-single-digit growth, whereas eCommerce sales surged with mid-teen growth . Throughout fiscal 2025, the company gained market share in both the mass and prestige beauty segments, with comparable sales growth observed across all product categories .

Key Digital Initiatives

Several digital initiatives contributed to Ulta Beauty’s success. These include the launch of “Replenish & Save,” an auto-replenishment subscription service offering 5% savings and free shipping, and the “Wish List” feature, designed to enhance the customer experience .

AI-Powered Personalization

AI played a crucial role in Ulta Beauty’s performance, particularly through its automated marketing engine. This technology enabled personalized content delivery, ensuring customers received relevant, dynamic, and timely information . Kecia Steelman, Ulta Beauty’s President and CEO, emphasized the company’s commitment to building on this progress with new capabilities and strong guest engagement through personalization, leveraging greater automation and real-time content .

Expansion with UB Marketplace

In October 2025, Ulta Beauty launched UB Marketplace, a curated third-party platform integrated into its website, and app. This expansion broadened the company’s product offerings to include beauty, wellness, and lifestyle categories, providing customers with a more comprehensive shopping experience . Steelman described the marketplace as a complementary assortment that expands shopping options without competing with in-store products .

Looking Ahead to Fiscal 2026

Ulta Beauty anticipates net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5% for fiscal 2026 . The company acknowledges ongoing consumer trends, including a focus on value, affordability, and discerning spending habits, as well as a competitive landscape. Steelman also noted the company is mindful of potential economic impacts from rising global conflicts .