Ulta Beauty is facing a competitive retail landscape as shoppers increase spending on beauty and wellness, despite economic pressures. The retailer has launched exclusive offers with rival TikTok Shop to stay ahead. Despite recent price increases due to tariff pressures, Ulta Beauty saw comparable sales increase 5.8% year over year in Q4 2025. This increase was driven by a 1.6% rise in transactions and a 4.2% increase in the average amount customers spent per visit. The company also saw strong sales growth in skin care, hair care, and fragrance, its strongest-performing category. To help keep customers engaged amid economic pressures, the company is relying on its Ulta beauty Unleased strategy, which involves remodeling stores, expanding beauty and wellbeing offerings, and becoming more digital-first.