Ulta Beauty shares early AI assistant results as ecommerce growth outpaces sales in physical stores

Ulta Beauty Inc. reported double-digit ecommerce sales growth in its fiscal Q1 — far outpacing physical stores with comparable sales — as customers spent more and made more purchases. For its first quarter ended May 2, Ulta said its net sales increased 11. 1% year over year, reaching $3. 16 billion. Overall comparable sales grew 5. 3% year over year.

Specifically, ecommerce comparable sales grew in the mid-teens, chief financial officer Christopher DelOrefice said on the earnings call. For physical stores, comparable sales rose in the low single digits, he said.

The digital growth comes as the retailer prioritizes new artificial intelligence (AI) features — including two new AI tools developed with Google — and a recent expansion onto TikTok Shop. Ulta Beauty ranks No. 37 in the Top 2000 Database. The database is Digital Commerce 360’s ranking of North America’s leading online retailers by annual web sales.

It is also among the top five online retailers in the Health & Beauty category from the Top 2000.

News Ulta Beauty, Google partner on agentic commerce launch through Gemini Abbas Haleem | Apr 22, 2026 Ulta Beauty commerce and delivery expansions “Fiscal 2026 is off to a strong start, driven by broad-based growth across all channels and major categories,” Kecia Steelman, Ulta’s president and CEO, said in a released statement.

On the company’s earnings call, Steelman said its ecommerce team delivered “another quarter of robust sales performance.” Ulta also reported mid-teens ecommerce sales growth in its fiscal Q4.

“The sustained strength of our ecommerce channel is powered by the investments we’ve made over the last several years to elevate our infrastructure and the ongoing enhancements we’re continuing to roll out,” Steelman said. Those digital enhancements included expanded fulfillment options. In May, Ulta joined the Uber Eats marketplace.

The partnership added more than 1,500 U. S. stores to the delivery platform. It allows shoppers to select same-day delivery or schedule orders in advance. Ulta also expanded its checkout options. Earlier this month, the retailer partnered with Klarna to bring buy now, pay later (BNPL) options to Ulta. com and its mobile app.

The integration allows shoppers to split purchases into interest-free installments or choose financing for larger orders. Steelman also pointed to Ulta’s omnichannel capabilities — including buy online, pick up in store (BOPIS) — as a key driver of both ecommerce growth and guest satisfaction.

2026 Omnichannel Report Analysis of omnichannel trends for the Top 1000 U. S. retailers. Includes over 15 charts, consumer survey results on omnichannel shopping habits, and new developments in the race to fulfill online orders. View Details Ulta’s AI and loyalty initiatives Ulta is also continuing its push into artificial intelligence (AI).

From a customer-facing perspective, the retailer launched an online assistant, Ulta AI, in April. Available on Ulta. com and the company’s mobile app, the new AI shopping assistant is built on Google’s Gemini Enterprise for Customer Experience. “Initial results have been promising,” Steelman said of the tool.

“And we are excited about the potential of this new feature.” Ulta has also partnered with AI platforms like Google to enable agentic commerce, she said. In April, Ulta rolled out functionality within Google’s AI Mode in Search and the Gemini app.

The integration allows consumers to search for, compare and purchase from Ulta directly through Google’s conversational interfaces. “We are still in the early days and are focused on leveraging the strengths of our partners to maximize the Al opportunity,” Steelman said.

The retailer is also using its “vast first-party data” and recent technology upgrades to improve personalization, she said. Specifically, Ulta’s teams are using the loyalty data to better analyze shopping behaviors, predict when customers need product refills and drive digital cart conversions, she said.

During Q1, Ulta expanded its Ulta Beauty Rewards loyalty program to nearly 47 million active members, up 4% year over year. Early results from TikTok Shop During the first quarter, Ulta officially launched its storefront on TikTok Shop. Steelman noted that the initial rollout featured “a strategic focus on our Only at Ulta exclusive brands.”

Responding to a question on the earnings call, Steelman said the partnership is “not just an ecomm play” and can have a halo impact for physical stores. “We think it’s complementary of our ecomm business,” she said. “And we do think it can bring a new guest in.”

Because the shop is still in its early phases, Steelman noted that Ulta’s next focus area includes expanding single- and multi-brand exclusive product bundles. This is alongside early access launches with brand partners.

Long-term, the retailer intends to use TikTok Shop to acquire new customers, particularly younger shoppers, and expand its database and loyalty ecosystem, she said. As part of that push, Ulta hosted