Ulta Beauty Climbs 4%, e.l.f. Beauty Rises 5% as Post-Earnings Selloff Reverses

David Moadel

Mon, August 31, 2026 at 7:35 PM GMT+3 5 min read

Quick Read

ULTA jumps 4% and ELF rises 5% Monday, reversing Friday's selloffs after both beat Q2 estimates and raised full-year guidance.
Beauty gains outperform a falling SPY and XRT, while TGT drops 1% after ending its Ulta shop-in-shop and launching its own Beauty Studio.
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Beauty/cosmetics stocks are reversing Friday's post-earnings decline midday Monday, as two of the sector's most-watched names lead retail higher against a softer session for large-cap benchmarks. The rebound comes after both companies cleared quarterly estimates and raised full-year outlooks, only to see their shares sold heading into the weekend.

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Ulta Beauty (NASDAQ:ULTA) stock is up 4% to $538, while e.l.f. Beauty (NYSE:ELF) stock is climbing 5% to $108.92. Also framing the retail read, the SPDR S&P Retail ETF (NYSEARCA:XRT) is slipping 0.2% to $86.72. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.46% to $765.80, marking today's beauty bid as a targeted sector move rather than a broad risk-on rally.

Ulta Beauty stock fell 4% to $517.18 Friday despite a Q2 2026 beat and a raised full-year guide, a decline covered in Friday's Ulta Beauty and e.l.f. Beauty pullback recap. Reporting Monday attributes part of the advance to an analyst upgrade, though the upgrading firm hasn't been confirmed and isn't being named here. Buyers are effectively taking the other side of Friday's fade, and the tone shift is testing whether that initial reaction was an overshoot on otherwise clean prints.

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Ulta Beauty's Beat Gets a Second Look

In its Q2 2026 report, Ulta Beauty posted net income of $282 million, or $6.55 per share, against $260.9 million and $5.78 a year earlier, clearing the $6.20 consensus. Revenue grew 8.9% to $3.04 billion versus $2.99 billion consensus, and comparable sales rose 3.8% against the 2.3% analysts expected. The mix of top-line growth and above-plan comps is what bulls want to see from a specialty retailer navigating an uneven consumer.

ULTA Earnings Explorer — 24/7 Wall St.

Ulta Beauty raised full-year EPS guidance to $28.70 to $29 from $28.36 to $28.80, its annual sales growth target to 6.7% to 7.2% from 6% to 7%, and its comp sales guidance to 3.2% to 3.7% from 2.5% to 3.5%. CEO Kecia Steelman stated the team is "executing with discipline and translating our Ulta Beauty Unleashed strategy into tangible benefits for our guests."

Divergent Starting Points Frame the Rally

Ulta Beauty and e.l.f. Beauty are rebounding from opposite starting points, and that divergence is the trade worth understanding. e.l.f. Beauty stock was up 37% year to date (YTD) through Friday's close, while Ulta Beauty stock was down 14% YTD through the same session. Similar-sized session pops carry very different meaning for each name, with e.l.f. Beauty extending a leadership run and Ulta Beauty trying to reclaim ground lost through the first eight months of the year.

Target (NYSE:TGT) stock forms the third leg of today's beauty story. Target stock is down 1% to $161.52, even after finishing Friday up 71% YTD. The Ulta Beauty shop-in-shop partnership inside Target stores concluded in August after the two companies chose not to renew it, and Target is now launching its own Target Beauty Studio concept in more than 600 stores with dedicated beauty advisers. Target is sliding while both beauty pure-plays rally, which sharpens the read on where beauty share is being allocated in a post-partnership landscape.

What to Watch

Investors can watch for whether Ulta Beauty stock reclaims its pre-earnings level of $544.99 and whether e.l.f. Beauty stock holds above $105 into the close. With XRT lower and SPY in the red, today's beauty bid reads like a focused sector rotation, and that raises the bar for follow-through into midweek trading if the broader retail sector doesn't join in.

Position sizing matters here given the volatility around both names, and readers adding exposure should treat single-stock retail rebounds as tactical setups rather than trend confirmation. The unnamed upgrade adds momentum without a verifiable analyst thesis, so leaning too hard on today's move carries execution risk if a formal research note doesn't surface in the coming sessions. A modest starter position, sized to survive another gap lower, is the more defensible way to engage a same-day reversal like this one.

The next scheduled catalyst for Ulta Beauty is its Q3 report, and e.l.f. Beauty holders can look to the company's next quarterly release for confirmation that its raised fiscal 2027 outlook is translating into sustained retailer sell-through. Between now and then, retail sector data and Target Beauty Studio's early rollout metrics will help set the tone for how beauty spending is being divided among the three names on the marquee today.