Ulta Beauty AI Personalization Drives Double-Digit eCommerce Surge

Digital upgrades and artificial intelligence contributed to Ulta Beauty’s better-than-planned financial performance in the fourth quarter, Ulta Beauty President and CEO Kecia Steelman said Thursday (March 12) during an earnings call.

The specialty beauty retailer saw year-over-year increases of 11.8% in net sales and 5.8% in comparable sales during the fourth quarter, according to a Thursday earnings release.

The firm saw comparable sales gains in both its store and digital channels, with low-single-digital growth in stores and mid-teen growth in eCommerce, per a presentation released Thursday.

Throughout fiscal 2025, the firm recorded comparable sales growth across all product categories and gained market share in both the mass and prestige beauty segments, according to the presentation.

During the call, Steelman highlighted digital upgrades that added guest-friendly features. Among them were “Replenish & Save,” which is an auto-replenishment subscription that offers 5% savings and free shipping, and “Wish List.”

AI in the company’s automated marketing engine also contributed to Ulta Beauty’s gains during the quarter by enabling personalization that provided customers with content that was relevant, dynamic and timely, Steelman said.

“We will build on our progress across our digital platforms with new capabilities and strong guest engagement through personalization, as we leverage greater automation and real-time content to tailor the guest experience and provide even more value to our loyal members,” Steelman said during the call.

Ulta Beauty’s curated third-party platform UB Marketplace went live on the company’s website and app in mid-October, offering customers a broader range of beauty, wellness and adjacent lifestyle categories.

“It is a complementary assortment that does not take away from what you could buy in store today, but it is another item that you could add to your basket,” Steelman said during the call.

Looking ahead, Ulta Beauty expects to see net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5% during fiscal 2026, according to the earnings release.

“Throughout 2025, we closely monitored consumer behavior and observed continued resilience, a strong focus on value and affordability, and increasing discernment in spending decisions,” Steelman said during the call. “At the same time, engagement with the beauty category remained healthy, and the landscape remained competitive.”

“We expect these themes to continue into fiscal 2026, though we are increasingly mindful of rising global conflicts that could impact economic conditions,” Steelman said.