Ulta BeautyFRA:34U +5.21%96 Gross Margin % is 40.07% as of Apr. 2026, which is 7% above its 10-year median of 37.54. GuruFocus rates FRA:34U with a GF Score™ of 96/100 and a GF Value™ of €487.50 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Ulta Beauty ranks better than 56.22% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ulta Beauty's Gross Profit for the
three
months ended in Apr. 2026 was €1,084 Mil. Ulta Beauty's Revenue for the
three
months ended in Apr. 2026 was €2,705 Mil. Therefore, Ulta Beauty's Gross Margin % for the quarter that ended in Apr. 2026 was 40.07%.
The historical rank and industry rank for Ulta Beauty's Gross Margin % or its related term are showing as below:
FRA:34U'
s Gross Margin % Range Over the Past 10 Years
Min: 31.68 Med: 37.54 Max: 39.62
Current: 39.33
During the past 13 years, the highestGross Margin % of Ulta Beauty was 39.62%. The lowest was 31.68%. And the median was 37.54%.
FRA:34U's Gross Margin % is ranked better than 56.22% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs FRA:34U: 39.33
Ulta Beauty had a gross margin of 40.07% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ulta Beauty was 3.00% per year.
Ulta Beauty (FRA:34U) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ulta Beauty had a gross margin of 40.07% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ulta Beauty Gross Margin % Related Terms
Ulta Beauty Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ulta Beauty's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:34U vs WSM, DKS, TSCO: Gross Margin % Comparison
For the Specialty Retail subindustry, Ulta Beauty's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ulta Beauty Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ulta Beauty (FRA:34U) has a Gross Margin % of 40.07% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ulta Beauty and its competitors. This is near median its historical median of 37.54. Over the past decade, Ulta Beauty's Gross Margin % has ranged from 31.68 to 39.62. According to the industry distribution chart, Ulta Beauty ranks #489 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 43.8%.
Is Ulta Beauty's Gross Margin % too high?
Ulta Beauty's current Gross Margin % of 40.07% is near median its 10-year median of 37.54. Over the past 10 years, this metric has ranged from a low of 31.68 to a high of 39.62. The Retail - Cyclical industry median Gross Margin % is 36.23. Ulta Beauty's value of 40.07% is 10.6% above this industry median. Based on the distribution chart, Ulta Beauty ranks #489 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Ulta Beauty has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's Gross Margin % compare to WSM and DKS?
According to the Retail - Cyclical industry distribution chart, Ulta Beauty ranks #489 out of 1117 companies for Gross Margin %. This puts Ulta Beauty in the upper half of its industry. The industry median Gross Margin % is 36.23. Ulta Beauty's value of 40.07% is 10.6% above this benchmark. Historically, Ulta Beauty's own Gross Margin % has ranged from 31.68 to 39.62 over the past decade. While the company's 10-year median is 37.54 vs. the industry median of 36.23, Ulta Beauty has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ulta Beauty's current Gross Margin % of 40.07% is 10.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ulta Beauty and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ulta Beauty's current Gross Margin % is 40.07%, which is near median its own 10-year median of 37.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ulta Beauty stock overvalued right now?
Based on GuruFocus' analysis, Ulta Beauty (FRA:34U) is currently considered Modestly Undervalued. The stock's GF Value™ is €487.50, compared to a current price of €418.60 — trading 14.1% below its estimated fair value. The current Gross Margin % is 40.07%, which is near median its 10-year median of 37.54 and 10.6% above the Retail - Cyclical industry median of 36.23. Ulta Beauty's overall GF Score™ is 96/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ulta Beauty (FRA:34U), the current Gross Margin % is 40.07% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ulta Beauty (FRA:34U) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €418.60 is trading 14.1% below its estimated GF Value™ of €487.50.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for FRA:34U:
Gross Margin %: 40.07% (near median its 10-year median of 37.54)
GF Value™: €487.50 vs. price of €418.60 (14.1% below fair value)
Industry Position: 10.6% above the Retail - Cyclical median (#489 of 1117)
No single metric tells the full story. See the FRA:34U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 freestanding stores. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland) and has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
96GF Score
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