Ulta Beauty shares fell about 8% in extended trading after the retailer issued annual profit guidance below expectations, citing cautious consumer spending and intensifying competition. Holiday-quarter earnings of $8.01 per share beat forecasts of $7.93, with revenue at $3.9 billion, though operating margin contracted to 12.2% from 14.8% YoY. Lower- and middle-income shoppers are pulling back on discretionary purchases, pushing Ulta to court younger, wealthier consumers through celebrity-backed lines such as Beyoncé’s Cecred and Rihanna’s Fenty. The company projects comparable sales growth of 2.5% to 3.5% for fiscal 2026, down from 5.4% in 2025.

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