Will Ulta Beauty's Omnichannel Edge Help Sustain Business Growth?

ULTA is strengthening its omnichannel strategy through digital growth, loyalty, AI and social commerce to drive customer engagement.

Zacks Equity Research

3 min read

Ulta Beauty, Inc.’s ULTA omnichannel model remains an important part of its customer proposition, supported by the company’s diverse assortment, digital convenience and loyalty program. In the first quarter of fiscal 2026, the company delivered 5.3% comparable sales growth, with broad-based performance as all channels and major categories contributed positively to results.

The company highlighted the convenience of its buy anywhere, fill anywhere capabilities, including Buy Online Pickup In Store, as a key driver of e-commerce growth and guest satisfaction. Ulta Beauty is also enhancing digital convenience through expanded same-day delivery via Uber Eats and new Buy Now, Pay Later options through Klarna.

Ulta Beauty’s digital strategy also includes TikTok Shop, which gives the company another way to reach younger consumers and attract new guests. The company sees the platform as complementary to its e-commerce business and a way to bring customers into its broader ecosystem. Meanwhile, its loyalty program grew to nearly 47 million members, up 4% year over year. Ulta Beauty is using this first-party data to improve personalization, understand customer behavior, predict repeat purchases and drive cart conversion.

Additionally, Ulta Beauty is leveraging AI to optimize its business and enhance the guest shopping experience. The company introduced Ulta AI, an online shopping agent focused on discovery, personalization and shopping experiences, with promising initial results. The company is also integrating with leading AI platforms like Google’s Gemini to enable agentic commerce, while remaining focused on leveraging the strengths of its partners to maximize the AI opportunity.

Overall, Ulta Beauty continues to lean on its differentiated omnichannel experience, loyalty program and diverse assortment as it pursues long-term profitable growth.

The Zacks Rundown for ULTA

This Zacks Rank #2 (Buy) company’s shares have gained 6.3% in the past year against the industry’s 7.9% decline.

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From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 18.02, higher than the industry’s average of 16.27.

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The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings implies a year-over-year rise of 12.3% and 11.1%, respectively.

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Other Stocks to Consider

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Five Below, Inc. FIVE operates as a specialty value retailer in the United States. At present, Five Below carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 23.9% and 36.1%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

DICK’S Sporting Goods, Inc. DKS operates as an omni-channel sporting goods retailer primarily in the United States. At present, DKS holds a Zacks Rank of 2.

The Zacks Consensus Estimate for DKS’ current fiscal-year sales and earnings implies growth of 50.4% and 7.9%, respectively, from the year-ago figures. DKS delivered a trailing four-quarter earnings surprise of nearly 1%, on average.

Sally Beauty Holdings, Inc. SBH operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. At present, SBH carries a Zacks Rank of 2.

The Zacks Consensus Estimate for SBH’s current fiscal-year sales and earnings implies growth of 0.8% and 9%, respectively, from the year-ago figures. SBH delivered a trailing four-quarter earnings surprise of 6.4%, on average.

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