• by Sarah Mahoney , Yesterday

After a high-profile management change and several quarters of resetting, Ulta Beauty is back to bragging rights, posting an 11.8% gain in fourth-quarter sales. At the same time, the retailer announced its move into TikTok Shop, an expansion it says will benefit its digital and AI-enhanced operations.

For the quarter, sales rose to $3.9 billion, a gain of nearly 12%, driven by the addition of new stores and the acquisition of Space NK, a leading British beauty retailer. On a comparable basis, sales advanced 5.8%, based on a nearly 2% gain in the number of transactions and a 4.2% increase in average ticket.

Net income grew by 9%, reaching $356.7 million.

As momentum built throughout the year, "we steadily reignited our collective spirit, or as I like to say, we got our swagger back," said Kecia Steelman, president and CEO, on the company's earnings call.

Steelman, who took over the reins just a year ago, introduced the TikTok Shop news as a next step on digital platforms and personalization. "Guests can purchase immediately as they engage with content from Ulta Beauty and our brands on the platform," she said, providing new opportunities for "both social and AI-enhanced commerce platforms."

Initially, the launch will feature an assortment of exclusive "Only at Ulta" brands, adding "another exciting tool to our brand-building playbook."

The company is also stepping up its inclusion of wellness products, and expanding capabilities at UB Media, its retail ad network.

Some observers are impressed by the results of the turnaround so far.

"Over the past year, the company has improved its execution, made key investments, and put the right leaders in place," writes Krisztina Katai, an analyst who follows Ulta for Deutsche Bank.

Katai expects the company to sustain momentum in 2026 with the launch of Rare Beauty, the Selena Gomez-owned brand that made its debut at the retailer last month. Citing outside traffic estimates, she believes Rare Beauty sales may even top sales of Ulta's 2022 Fenty Beauty launch.