Ulta Beauty's ecommerce sales surge past stores as AI assistant shows early promise
Ulta Beauty reported 11.1% net sales growth in its first quarter ended May 2, reaching $3.16 billion, with ecommerce outpacing physical stores by a significant margin. Ecommerce comparable sales grew in the mid-teens while store sales rose in the low single digits.
The company attributes the digital strength to investments in fulfillment, checkout options, and artificial intelligence tools developed with Google. Ulta also launched on TikTok Shop and expanded its loyalty program to nearly 47 million active members.
AI assistant and Google partnership deliver early results
Ulta introduced Ulta AI in April, a customer-facing shopping assistant built on Google's Gemini Enterprise for Customer Experience. CEO Kecia Steelman said initial results have been promising, though the company remains in early stages of exploring the technology's potential.
The retailer also rolled out functionality within Google's AI Mode in Search and the Gemini app, allowing customers to search, compare, and purchase Ulta products directly through Google's conversational interfaces. This represents an expansion into what Steelman called agentic commerce - letting AI agents complete transactions on behalf of customers.
Beyond customer-facing tools, Ulta is using first-party loyalty data to improve personalization. The company's teams analyze shopping behaviors, predict when customers need product refills, and drive digital cart conversions using this data.
TikTok Shop early momentum, fulfillment expansion
Ulta's TikTok Shop storefront launched during Q1 with a focus on exclusive brands. The company hosted its first shoppable livestream on April 16, which generated more than 5 million impressions and strong sales volume.
Steelman said the platform can attract younger shoppers and expand Ulta's customer database beyond its ecommerce business. The company plans to expand product bundles and early-access launches with brand partners.
On the fulfillment side, Ulta joined Uber Eats in May, adding more than 1,500 U.S. stores to the delivery platform. The company also partnered with Klarna to offer buy-now-pay-later options on its website and mobile app.
Growth breakdown and financial outlook
Overall comparable sales grew 5.3% year over year, driven by a 3.7% increase in average ticket and a 1.6% increase in transactions. The company opened 16 net new stores during the quarter.
Ulta maintained its full-year 2026 outlook, forecasting net sales growth between 6% and 7%, with comparable sales expected to rise 2.5% to 3.5%. The company plans to open a flagship store in Times Square in late 2027 and continue scaling digital initiatives, international operations, and wellness offerings.
For sales professionals, Ulta's results highlight how AI for Sales and AI for Marketing can drive measurable revenue growth when integrated into customer-facing operations and loyalty programs.
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