Ulta BeautyWBO:ULTA -0.30%94 Operating Margin % is 14.32% as of Apr. 2026, which is 4% above its 10-year median of 13.82. GuruFocus rates WBO:ULTA with a GF Score™ of 94/100 and a GF Value™ of €490.45 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Ulta Beauty ranks better than 84.57% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ulta Beauty's Operating Income for the
three
months ended in Apr. 2026 was €387 Mil. Ulta Beauty's Revenue for the
three
months ended in Apr. 2026 was €2,705 Mil. Therefore, Ulta Beauty's Operating Margin % for the quarter that ended in Apr. 2026 was 14.32%.
Good Sign:
Ulta Beauty Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Ulta Beauty's Operating Margin % or its related term are showing as below:
WBO:ULTA'
s Operating Margin % Range Over the Past 10 Years
Min: 5.95 Med: 13.82 Max: 16.16
Current: 12.58
WBO:ULTA's Operating Margin % is ranked better than 84.57% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs WBO:ULTA: 12.58
Ulta Beauty's 5-Year Average Operating Margin % Growth Rate was 10.20% per year.
Ulta Beauty's Operating Income for the
three
months ended in Apr. 2026 was €387 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €1,366 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ulta Beauty Operating Margin % Related Terms
Ulta Beauty Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ulta Beauty's Operating 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.
WBO:ULTA vs WSM, DKS, TSCO: Operating Margin % Comparison
For the Specialty Retail subindustry, Ulta Beauty's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ulta Beauty's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Ulta Beauty (WBO:ULTA) has a Operating Margin % of 14.32% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ulta Beauty and its competitors. This is near median its historical median of 13.82. Over the past decade, Ulta Beauty's Operating Margin % has ranged from 5.95 to 16.16. According to the industry distribution chart, Ulta Beauty ranks #174 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 15.4%.
Is Ulta Beauty's Operating Margin % too high?
Ulta Beauty's current Operating Margin % of 14.32% is near median its 10-year median of 13.82. Over the past 10 years, this metric has ranged from a low of 5.95 to a high of 16.16. The Retail - Cyclical industry median Operating Margin % is 3.91. Ulta Beauty's value of 14.32% is 266.7% above this industry median. Based on the distribution chart, Ulta Beauty ranks #174 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ulta Beauty has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's Operating Margin % compare to WSM and DKS?
According to the Retail - Cyclical industry distribution chart, Ulta Beauty ranks #174 out of 1128 companies for Operating Margin %. This places Ulta Beauty in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Ulta Beauty's value of 14.32% is 266.7% above this benchmark. Historically, Ulta Beauty's own Operating Margin % has ranged from 5.95 to 16.16 over the past decade. While the company's 10-year median is 13.82 vs. the industry median of 3.91, 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 Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ulta Beauty's current Operating Margin % of 14.32% is 266.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ulta Beauty and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ulta Beauty's current Operating Margin % is 14.32%, which is near median its own 10-year median of 13.82. 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 (WBO:ULTA) is currently considered Modestly Undervalued. The stock's GF Value™ is €490.45, compared to a current price of €404.10 — trading 17.6% below its estimated fair value. The current Operating Margin % is 14.32%, which is near median its 10-year median of 13.82 and 266.7% above the Retail - Cyclical industry median of 3.91. Ulta Beauty's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ulta Beauty (WBO:ULTA), the current Operating Margin % is 14.32% 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 (WBO:ULTA) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €404.10 is trading 17.6% below its estimated GF Value™ of €490.45.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for WBO:ULTA:
Operating Margin %: 14.32% (near median its 10-year median of 13.82)
GF Value™: €490.45 vs. price of €404.10 (17.6% below fair value)
Industry Position: 266.7% above the Retail - Cyclical median (#174 of 1128)
No single metric tells the full story. See the WBO:ULTA 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.
94GF Score
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