The retailer’s overall ecosystem, including its loyalty personalization, are working together to keep customers coming back
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Dive Brief:
- Ulta Beauty’s emphasis on personalization helped fuel incremental sales in its latest quarter, CEO Kecia Steelman said on a Q2 2026 earnings call. Its loyalty program, which grew membership by 3% to 47 million members, was central to the strategy.
- The beauty retailer is using customer insights to create more relevant experiences, drive engagement and anticipate shopper needs and intent across key moments, according to Steelman.
- “By leveraging our unique understanding of our guests and the beauty landscape, we are strengthening trust and deepening loyalty to ensure Ulta Beauty is the beauty destination our growing number of guests choose again and again,” Steelman said on the call.
Dive Insight:
Ulta is courting consumers who are navigating economic uncertainty by delivering value across its entire ecosystem.
While the retailer continues to offer planned promotional events, the strategy aims to go beyond offering discounts
“It’s not just about a promo,” Steelman said. “It’s about how we are activating it in store with experience and being really thoughtful in how we’re bringing the brands to life. We were pleased with how that continued to play out throughout the quarter.”
One example is the fragrance category, where Ulta worked to grow its market share through a combination of marketing campaigns and engaging experiences in-store and online
The beauty retailer further invested in its digital experience with a combination of AI upgrades and faster fulfillment speeds, Steelman said. The company’s on-site shopping agent delivered “meaningful increases” to site traffic while improving conversion rates, and Ulta continues to invest in its presence on third-party platforms.
“As consumers increasingly turn to AI for search and discovery, we have scaled content creation and enriched product information across AI platforms like OpenAI’s ChatGPT, positioning Ulta Beauty as an authority ofaid
Ulta’s financial results were strong, with same-store sales up 3.8% year over year in the second quarter of 2026, according to an earnings release. Net sales rose 8.9% year over year.
The company’s overall ecosystem, including its emphasis on convenience and a strong shopping experience, are working together to elevate its sales potential
“This combination creates a flywheel that attracts more guests, more loyalty, more data and some insights and more brand partnerships, which in turn makes Ulta Beauty the ultimate beauty discovery destination and represents a strategic advantage that is very difficult to replicate,” Steelman said.
